Anpario (ANP) H2 2024 earnings summary

Executive summary

• Revenue increased 23% year-over-year to £38.2 million, with gross profit up 28% to £17.9 million, reflecting improved margins and volume growth across all segments and product classes.

• Adjusted EBITDA rose 57% to £7 million, matching the 2021 peak, driven by higher sales and improved margins.

• Diluted adjusted EPS reached a record 28.12p, up 84% year-over-year, aided by profitability and a reduction in issued shares.

• Acquisition of Bio-Vet contributed £2.2 million in Q4 revenue and £0.4 million in EBITDA, with strong performance in the U.S. dairy market.

• Cash position remains robust at £10.5 million after acquisition outflows, supporting ongoing dividend growth and future investments.

Financial highlights

• Gross margin improved to 46.9% from 45% last year, driven by stable raw material prices and efficiency gains.

• Admin expenses rose 14% to £1.6 million, including £1.2 million in incentive provisions and £0.6 million in acquisition costs.

• Like-for-like EBITDA (excluding Bio-Vet and one-offs) was £6.6 million, with Bio-Vet adding £0.4 million.

• Operating cash flow before working capital changes increased to £6.3 million, reflecting higher profitability.

• Dividend per share increased 5% to 11.25p, with a payout ratio now around 45%.

Outlook and guidance

• Full-year benefit from Bio-Vet expected in the coming year, with continued gross margin improvement and volume growth.

• Demand for gut health and efficiency products remains strong, with regulatory trends favoring natural alternatives.

• Geographic and product diversity provides resilience against regional or sector-specific challenges.

• Ongoing focus on complementary acquisitions and organic growth, especially in India and the U.S.