(Alliance News) - Feed additives firm Anpario PLC said at its annual general meeting on Thursday that its 2019 performance so far is in line with management expectations.
The company said in March when it published in early March that its industry faced several challenges, including the farming crisis in China due to African swine fever.
Anpario said that since then its gross margins have improved, driven by a change in product mix and its ongoing strategy to develop more direct routes to market, control costs, and make sensible investments.
The company said it expect the China farming crisis to alleviate as the year progresses. Farmers in the country are starting to restock as pig prices reach record high levels.
In addition, Anpario's focus on Chinese poultry is gaining momentum, and there are expectations that other regions, such as Latin America, will start benefiting from production shortfalls in China.
Also, the company said it has received its first sales through its Anpario Direct online platform, which was recently launched for the UK market to target smaller farm businesses.
"Inevitably, there will be a gestation period before the affected markets pick up but we believe, they will do so later this year so that expanding profitable sales and distribution channels around the world remains our top priority," said Chair Peter Lawrence.
Anpario will publish its interim results on September 11.
Shares in Anpario were down 7.3% at 312.56 pence on Thursday in London.
Anpario (ANP)