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, and diluted adjusted EPS reached a record 28.12p, up 84% year-over-year, aided by a share tender offer and reduced issued shares.

• All geographic segments (Asia, Americas, Middle East, Europe) and major product classes saw growth, with notable recovery in previously challenged areas such as pellet binders, toxin binders, and acid-based eubiotics.

• The 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 sector.

• Total dividend per share increased 5% to 11.25p, maintaining a long record of consistent dividend growth.

Financial highlights

• Gross margin improved to 46.9% from 45% year-over-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.

• Operating profit nearly doubled, up 94% to £4.9 million.

• Operating cash flow before working capital changes increased to £6.3 million, with a strong year-end cash position of £10.5 million.

• Dividend payout ratio normalized to around 45% after peaking at 79% in prior years.

Outlook and guidance

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

• Management targets a 50% gross margin for the core business and 55% for Bio-Vet.

• Ongoing product development includes combining Bio-Vet probiotics with existing phytogenic products.

• Strategic focus on geographic and species diversity to mitigate global trade and tariff risks.

• Continued search for complementary acquisition opportunities, supported by strong cash position.