Highlights
- Anpario, a U.K. manufacturer of animal-feed additives, has announced a decline in pretax profit for the first half of the year.
- Sales were down 7% during this period, impacted by higher costs and reduced demand in Asia due to avian influenza and African swine fever outbreaks.
- However, the company anticipates a recovery in sales volume and further gross margin improvements in the second half.
- An interim dividend of 3.20 pence per share has been declared.
- Despite the current challenges, Anpario remains optimistic about future sales growth as industry conditions improve and business development initiatives yield positive results.
Financial Performance
According to Anpario's latest financial report, pretax profit for the first half amounted to £1.4 million, down from £2.4 million the previous year. This decline can be attributed to lower sales, which reached £15.3 million compared to £16.5 million in the same period.
Factors Impacting Sales
Anpario's sales were negatively impacted by several factors. Firstly, customers faced higher costs, leading to a decrease in demand. Additionally, the company's largest market, Asia, experienced further setbacks due to outbreaks of avian influenza and African swine fever.
Expectations for Second Half
Despite the challenges faced in the first half of the year, Anpario is hopeful for a turnaround in the second half. The company anticipates a recovery in sales volumes as industry conditions improve and their business development initiatives take effect. The management is optimistic about continued sales growth throughout 2023 and into 2024.
Dividend Announcement
Anpario's board has declared an interim dividend of 3.20 pence per share for this year, slightly higher than the 3.15 pence per share declared in the previous year.
Market Reaction
As of 0732 GMT, Anpario's shares have declined by 21.50 pence or 9.45%, currently trading at 206 pence.
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