Anpario plc
(“Anpario” or the “Company”)
AGM Statement
Anpario plc, the independent manufacturer of natural sustainable animal feed additives for health, nutrition and biosecurity , is holding its AGM later today. Kate Allum, Chairman, will make the following statement
“Group sales for the five months to 31 May 2022 are just ahead of last year which we consider a good performance given China's recent Covid lockdown and the Russia – Ukraine conflict, both of which have affected our sales performance. As anticipated, we experienced significant raw material price inflation, which has remained at elevated levels, and combined with historically high logistics costs has led to a fall in our gross margins. We have though, as a priority, been successfully passing on this inflation through planned sales price increases and overheads are being closely managed.
To mitigate the continued disruption in global supply chains we have increased finished goods inventory in our subsidiaries worldwide and increased raw material stockholding at our production site following the recent expansion and upgrade in storage capacity. It is vital that we maintain continuity of supply to our customers who are experiencing significant cost pressures from the high price of animal feed. Encouragingly, international travel and tourism is increasing and should lead to a corresponding uplift in meat consumption.
We are excited by the potential of both existing and new products including pHorce® which is proving its value to pig producers worried about virus-contaminated feed and as a replacement for zinc oxide (ZnO) which is banned in piglet diets from June 2022 in the European Union. Our new omega 3 supplement, Optomega® Algae, has generated a lot of interest due to its sustainable source, from which we expect to convert this interest into growing sales. The Company continues to invest in both product technology and its global sales channels to deliver effective innovative solutions for the animal production industry.
We expect the challenging environment to continue until the end of the year, but Anpario's broad range of products, geographic diversity and strong financial position makes for a robust business and gives us confidence in our ability to navigate the current uncertainties and continue with the profitable development of the Company.”
The Company's interims for the six months period ended 30 June 2021 are expected to be announced on 14 September 2021.