Wynnstay Group Plc have announced record interim results, ahead of management expectations, driven by a firm market backdrop, with strong farmgate prices boosting farmer sentiment, and significant one-off gains from fertiliser blending activities at Glasson.
Revenue increased by 34% to £335.66m, with inflation accounting for around £80m of the rise, and the first contribution from Humphrey Feeds and Pullets accounting for £6.4m. Underlying pre-tax profits* increased by 85% to £10.21m.
The Agriculture Division saw revenues of £263.03m, an increase of 45%, and operating profit up by 176% to £6.06m. The business saw an increased contribution from Glasson due to one-off stock price gains from fertiliser blending activities. Feed volumes were up 3.25%, which is ahead of the sector average, with good growth in target markets. Grain trading volumes increased by 50% following a return to a more normalised harvest and good autumn planting season.
The Specialist Agricultural Merchanting Division saw revenues increase by 5% to £72.63m and operating profit before non-recurring items up 26% to £4.28m. The division saw a favourable sales mix with strong sales of bagged feed, animal health case and hardware, with efficiency improvements helping to drive higher profitability.
Gareth Davies, Chief Executive of Wynnstay Group plc, commented:
“These record interim results have been underpinned by a favourable sector backdrop, with strong farmgate prices across most sectors and positive farmer sentiment, as well as significant one-off gains in our fertiliser blending activity.”
“The acquisition of Humphrey Feeds and Pullets is exciting. It significantly extends our geographic reach and opens up new growth opportunities.”
“While there are still challenges with cost inflation and supply chain pressures, sector sentiment remains strong, and we are confident about achieving our growth goals for the full year.”
*Underlying pre-tax profit is a non-GAAP (generally accepted accounting principles) measure and is not intended as a substitute for GAAP measures and may not be calculated in the same way as those used by other companies. Refer to Note 6 in the RNS for an explanation on how this measure has been calculated and the reasons for its use.