Wynnstay Group (WYN) H2 2024 earnings summary

Executive summary

• Revenue declined to £613.1m from £735.9m year-over-year, mainly due to commodity price deflation and adverse weather impacting farming activity, resulting in lower profit but strong cash generation and a record net cash position.

• Project Genesis, a three-year operational transformation, was launched to drive efficiency, reduce costs, and support growth.

• Strategic focus is on organic growth, capacity expansion, and targeted acquisitions aligned with core operations.

• Proposed final dividend of 11.9p, total 17.5p (2023: 17.25p), signaling confidence in future prospects.

• Net cash increased to £32.8m (2023: £23.7m), reflecting strong cash generation and disciplined working capital management.

Financial highlights

• Revenue down 17% year-over-year, with commodity deflation accounting for 96% of the decrease; gross profit remained stable at £79.2m (2023: £79.9m).

• Adjusted profit before tax was £7.6m, down from £10.3m in 2023; adjusted EPS at 23.78p (2023: 36.17p); reported EPS at 12.12p (2023: 30.74p).

• Non-recurring costs of £2.3m included restructuring and asset impairments.

• Operating cash flow strong at £19.1m (2023: £17.2m); net cash generation of £9.1m (2023: £2.2m).

• Progressive dividend increased to 17.5p per share.

Outlook and guidance

• FY25 performance is expected to improve, driven by early benefits from operational changes and investments, with farmgate prices anticipated to remain robust.

• Project Genesis is expected to deliver significant operational and financial improvements, with real value anticipated in 2026 and 2027.

• Major investments ongoing, including a new fertiliser plant and solar arrays.