Sales growth across all regions and strong demand for key products including Orego-Stim, pHorce and Mastercube, helped Anpario plc increase sales by nine percent to £33.4m and profit before tax by seven percent to £5.7m in its results for the year ended 31 December 2021.
Anpario is one of the leading independent manufacturers of natural sustainable feed additives for animal health, nutrition and biosecurity.
'I am delighted to report the Group's continued strong operating performance against a backdrop of the Covid-19 pandemic, supply chain disruption and raw material price inflation,' says Anpario chief executive Richard Edwards. 'Our research and development programmes over the past few years have given the Group a strong portfolio of environmentally friendly and sustainable solutions. It is particularly pleasing to see our key product brands experiencing strong demand as the industry moves away from the use of harmful applications such as formaldehyde and zinc oxide for antimicrobial control in addition to the trend to reduce antibiotic use.'
Sales of Orego-Stim, which in 2021 was granted a patent for reducing antimicrobial resistance, rose by 24 percent and sales of pHorce rose by 23 percent. Mastercube pellet binder sales grew by 37 percent driven by demand for natural products in aquaculture. During the year Anpario launched a new 100 percent natural omega-3 supplement branded Optomega® Algae. The product has been well received in both the production animal and pet sector where customers are increasingly looking for sustainable solutions from non-animal derived sources.
'We are maintaining the progress of last year but are acutely aware of the inflationary pressures and challenges in the food supply chain,' says Mr Edwards. 'We will continue to monitor the effect of these issues and manage any potential impact on the business. We remain confident of continuing the profitable development of the Group with further investments in our operations, product technology and global sales channels to deliver effective solutions to the animal production industry.'
Operational highlights
Anpario saw sales growth across all regions: Asia, Europe, Middle East & Africa (MEA) and the Americas. Within these regions South America, which includes Brazil and Chile, grew sales by 42 percent largely due to sales of Orego-Stim to both the aquaculture and poultry sectors.
China continued to benefit from the recent ban on the use of antibiotic growth promoters in animal feed delivering sales growth of 32 percent and the Middle East recovered from its low in 2020 with a 31 percent sales growth helped by strong performances from Iraq and India where Anpario has recently appointed new distributors.
The Asia Pacific region, excluding Australasia and China, experienced an 11 percent decline in sales compared to the same period last year as continued lockdowns across the region and lack of tourism affected meat consumption. Overall Europe, including the UK, delivered sales growth of eight percent but there were notable declines from Austria and Spain as distributors increased their stocks at the end of 2020 prior to Brexit taking effect at the beginning of the period.
Anpario has continued to invest in sales channels and during the period set up new subsidiaries in Mexico, New Zealand and Vietnam. This localisation strategy proved invaluable during the pandemic in supporting end customers. The Company also made additional investments at its Manton Wood production plant in raw material storage, bulk handling and the installation of solar panels to further reduce our carbon emissions.
Ukraine
Anpario is shocked and saddened by the tragic events unfolding in Ukraine and to support the humanitarian response the Company is currently engaged with British Red Cross to make a donation to the DEC Ukraine Humanitarian Appeal.
Having considered the sanctions that have been put in place against Russia and Belarus, although Anpario's products can be described as being for humanitarian purposes, the Company has ceased all trading with these countries. In 2021, revenues from Russia and Belarus were less than 1 percent of Group revenues, with no revenues from Ukraine. Anpario has no dependency on material supply from these countries.
Dividend
The Anpario Board is recommending a final dividend of 7.0 pence per share (2020: 6.25 pence) making a total of 10.0 pence per share for the year (2020: 9.0 pence), an increase of 11.1 percent.
For more information about Anpario visit the website, HERE.
'I am delighted to report the Group's continued strong operating performance against a backdrop of the Covid-19 pandemic, supply chain disruption and raw material price inflation,' says Anpario chief executive Richard Edwards. 'Our research and development programmes over the past few years have given the Group a strong portfolio of environmentally friendly and sustainable solutions. It is particularly pleasing to see our key product brands experiencing strong demand as the industry moves away from the use of harmful applications such as formaldehyde and zinc oxide for antimicrobial control in addition to the trend to reduce antibiotic use.'
Sales of Orego-Stim, which in 2021 was granted a patent for reducing antimicrobial resistance, rose by 24 percent and sales of pHorce rose by 23 percent. Mastercube pellet binder sales grew by 37 percent driven by demand for natural products in aquaculture. During the year Anpario launched a new 100 percent natural omega-3 supplement branded Optomega® Algae. The product has been well received in both the production animal and pet sector where customers are increasingly looking for sustainable solutions from non-animal derived sources.
'We are maintaining the progress of last year but are acutely aware of the inflationary pressures and challenges in the food supply chain,' says Mr Edwards. 'We will continue to monitor the effect of these issues and manage any potential impact on the business. We remain confident of continuing the profitable development of the Group with further investments in our operations, product technology and global sales channels to deliver effective solutions to the animal production industry.'
Operational highlights
Anpario saw sales growth across all regions: Asia, Europe, Middle East & Africa (MEA) and the Americas. Within these regions South America, which includes Brazil and Chile, grew sales by 42 percent largely due to sales of Orego-Stim to both the aquaculture and poultry sectors.
China continued to benefit from the recent ban on the use of antibiotic growth promoters in animal feed delivering sales growth of 32 percent and the Middle East recovered from its low in 2020 with a 31 percent sales growth helped by strong performances from Iraq and India where Anpario has recently appointed new distributors.
The Asia Pacific region, excluding Australasia and China, experienced an 11 percent decline in sales compared to the same period last year as continued lockdowns across the region and lack of tourism affected meat consumption. Overall Europe, including the UK, delivered sales growth of eight percent but there were notable declines from Austria and Spain as distributors increased their stocks at the end of 2020 prior to Brexit taking effect at the beginning of the period.
Anpario has continued to invest in sales channels and during the period set up new subsidiaries in Mexico, New Zealand and Vietnam. This localisation strategy proved invaluable during the pandemic in supporting end customers. The Company also made additional investments at its Manton Wood production plant in raw material storage, bulk handling and the installation of solar panels to further reduce our carbon emissions.
Ukraine
Anpario is shocked and saddened by the tragic events unfolding in Ukraine and to support the humanitarian response the Company is currently engaged with British Red Cross to make a donation to the DEC Ukraine Humanitarian Appeal.
Having considered the sanctions that have been put in place against Russia and Belarus, although Anpario's products can be described as being for humanitarian purposes, the Company has ceased all trading with these countries. In 2021, revenues from Russia and Belarus were less than 1 percent of Group revenues, with no revenues from Ukraine. Anpario has no dependency on material supply from these countries.
Dividend
The Anpario Board is recommending a final dividend of 7.0 pence per share (2020: 6.25 pence) making a total of 10.0 pence per share for the year (2020: 9.0 pence), an increase of 11.1 percent.
For more information about Anpario visit the website, HERE.
The Global Miller
This blog is maintained by The Global Miller staff and is supported by the magazine Milling and Grain
which is published by Perendale Publishers Limited.
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