Anpario (ANP) H2 2024 earnings summary

Executive summary

• Revenue increased 23% year-over-year to £38.2m, with gross profit up 28% to £17.9m, reflecting improved margins and recovery across all regions and product classes, notably pellet binders, toxin binders, and acid-based eubiotics.

• Adjusted EBITDA rose 57% to £7m, 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.

• Strong cash position at £10.5m after Bio-Vet acquisition, supporting ongoing dividend growth and future investments.

• 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% last year, driven by stable raw material prices and higher volumes.

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

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

• Like-for-like EBITDA (excluding Bio-Vet and one-offs) was £6.6m; Bio-Vet contributed £0.4m EBITDA in Q4.

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

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.

• Ongoing focus on complementary acquisitions and deeper market penetration, especially in India and the U.S.

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