The UK headquartered firm said revenues increased by 39% to £14.8m (US$20m) for the period up to June 30, when compared to the £10.7m generated in the same time frame last year.
Gross profit in the period rose by over 42% to £7.3m (2016: £5.1m), it reported.
“Increased volumes and a higher proportion of end customer sales have enabled us to maintain our overall gross margins and helped offset some raw material price inflation.”
It noted its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was ahead by 31% to £2.6m (2016: £2.0m).
“The growth in profit after tax of 21% to £1.6m (2016: £1.3m) was achieved after increases to the depreciation and amortization charges resulting from recent capital expenditure and higher share-based payments and income tax charges.”
Growth returns to Middle East region
Anpario said its key target regions delivered strong performances during the period with increases of 58%, 56% and 46% from Asia, the Americas and the Middle East, respectively, compared to the same period a year prior.
“Despite the ongoing geopolitical events in the region, the Middle East returned to growth with strong performances from Israel, Lebanon and Turkey. The outturn in Turkey contrasts with the first half of 2016 when reduced stockholdings began at the start of last year. A new technical sales manager has also been recruited to support development in this area.”
In Asia, there were strong performances from Bangladesh, Malaysia, Philippines, South Korea, and Thailand. China delivered sales growth of 42% helped by the successful relaunch of Orego-Stim, which is now branded as Meriden-Stim, said the feed additives firm.
The standout performer in the Americas region was the US, it added, which accounted for 7% of total group revenue and where sales have accelerated in the dairy sector, organic egg layers and supplying poultry integrators for both conventional and antibiotic free production.
Brazil and Mexico also saw good sales growth, it added.
The company said its operations in the UK and Ireland, which account for 11% of total sales, did well, with sales increasing by 15%. It said the recovery in milk prices in those markets helped to strengthen demand for its products designed to improve fertility in dairy cows.
Its UK team is working, in partnership with industry specialists, to demonstrate the benefits of its products for the layer industry there.
Anpario said over the past 12 months it has recruited a new central technical team, for which one of the principal tasks is to demonstrate its products ability to help farmers’ profitability by improving performance when regulatory changes dictate that certain treatments, such as antibiotic growth promoters, or other practices can no longer be used in meat production.
“One recent opportunity is the phased banning of zinc oxide in pig diets across the EU and in some other countries. A number of customers have successfully replaced zinc oxide in diets with our organic acid based eubiotic products, which promote development of the gut microbiota. In order to scientifically support our field experiences, we carried out successful trials at leading institutions in Canada and Thailand.”
Outlook
Anpario said the second half of the year has started well.
Peter Lawrence, non-executive chair, Anpario, commented:
“Our focus remains on implementing the strategy that is successfully transforming our sales and distribution channels by building stronger and closer relationships with customers. Our strong balance sheet and positive cash generation give Anpario a sound platform from which to make selective earnings enhancing acquisitions and to further invest in recruitment and infrastructure to accelerate the profitable growth of the business.”
