INTERNATIONAL feed additive outfit Anpario grew its profit margin in 2018 despite overall revenue slipping slightly.
In the AIM-listed firm’s annual results, which cover the year to December 31 2018, pre-profits were £4.6m (2017:£3.4m) against sales of £28.3m (2017: £29.2m).
The results highlight “strong sales growth” in the US, Europe and Australasian markets, while incorporating new subsidies in Mexico and in early this year Turkey. It also launched the Mycotoxin binders branded under Anpro and an Omega 3 supplement that claims improved fertility in dairy production.
But it suggests the results were in spite of a “challenging trading environment” pointing to African Swine Fever in China and a strengthening US dollar restricting sales.
A priority for the firm is growing total sales directly to end users, which it hopes to
Highlights within Europe include
- 9% sales growth overall, in particular aided by a recovery in milk prices strengthening demand for mycotoxin binders
- 29% sales increase in Spain driven by the popularity of Orego-Stim
In the US sales were up 31%, driven by sales of Orego-Stim as producers look to rear birds antibiotic free.
And in China a 7% increase in the first half of 2018 was reversed by African Swine Fever putting pressure on farmer margins and limiting the number of customer visits that could take place. Trade issues between the US and China are also affecting demand for additives, it said.
Sales declines were also noted in Asia (-10%) Latin America (-21%) and the Middle East (-9%), as well as Turkey (-37%) where a major customer went bankrupt.
Peter Lawrence, chairman, commented: “Trading in the current year is ahead of the same point in 2018. However, we remain vigilant as there may be obstacles ahead due to Brexit and African Swine Fever, in particular.
“Our strong balance sheet and cash generation capability provide Anpario with a firm platform from which to invest in new products and to develop the exciting Anpario Direct opportunity.
“Expanding profitable sales and distribution channels around the world remains our priority and the initiatives already implemented are gaining traction. This gives me confidence that we will return to sales growth as 2019 progresses.”