Anpario profits up as milk prices drive European sales growth

Animal feed additive producer and distributor Anpario reported a jump in first-half profits after sales jumped in the UK, Europe, China and the US and currencies swung in its favour.

For the six months ended 30 June, the company’s profit before tax increased by 19% over the prior year to £2.2m, while total first half sales were unchanged at £14.8m but would have increased by 5% if foreign exchange movements were stripped out.

The firm raised its interim dividend by 10% to 2.2p per ordinary share.

Sales growth of 14% in the UK and Europe was driven by a recovery in milk prices during the period, while revenue also rose for operations in China, the US and Australasia.

However, sales decline in Latin America, where the dollar strengthened against local currencies, Asia, where Anpario abandoned non-core sales to the Philippines, and the Middle East, where an outbreak of avian influenza and continued political tensions stymied growth.

Peter Lawrence, chairman of Anpario, said: "Our business development strategy will progressively improve sales and distribution, while control of costs will ensure that they do not move ahead of the growth we achieve. Our strong balance sheet and consistent cash generation provide Anpario with a sound platform from which to make selective earnings enhancing acquisitions."

The AIM traded company remains debt free and held cash and cash equivalents of £12.6m at 30 June, unchanged from the same point last year.

"With a favourable foreign exchange environment more likely in the second half year, I look forward to reporting good progress from the above initiatives early next year," said Lawrence.

Anpario’s shares were up 0.86% at 469.00p at 0838 BST.