anp by Richard Beddard10 Mar 2015 17:36
The natural animal feed additive manufacturer’s full-year results show again it’s capable of growing while investing in three big untapped markets.
Anpario reported sales up 2% in its full-year results to December 2014. Using constant exchange rates, revenues were up 6%, the difference was the strong pound which reduces the value of Anpario’s overseas earnings when translated into Sterling, and the fact that Anpario’s US dollar revenues increased 27% in 2014.
Lower costs enabled the company to achieve an adjusted profit 14% higher than in 2013, despite the strong pound. Anpario remains cash rich and debt free and the new financial year has, according to chairman and majority shareholder Richard Rose, started well.
Anpario manufactures natural animal feed additives in Worksop and sold them to 71 countries around the world in 2014. The additives promote animal growth by improving animal health. Although they are more expensive than antibiotics, the use of antibiotics as growth promoters was outlawed in the EU in 2006, and is under pressure from the US Food and Drug Administration and consumers in the US. Although enforcement is patchy, large meat producers supplying these markets and their own growing internal markets are looking to alternatives, which is why Anpario is focusing on the largest pig and poultry producers: The US, China and Brazil, collectively Asia-Pacific and the Americas. Here, and in Malaysia, Anpario has opened offices to register products and sell-direct, enabling it to generate sales through local seminars and encouraging large farms to trial its products.
It’s difficult to deduce the progress of this more concentrated strategy from the results. Last year I complained they lacked detail and the same is true this year. Anpario reported revenue up 26% in Asia Pacific and up 10% in the Americas, but singled out numerous smaller territories within them that are growing strongly, from Australia to the Philippines and Bolivia to Mexico. It doesn’t say how much money it’s making in the US, China, and Brazil, although last year chief executive David Bullen told me Anpario made 10% of group profit in China, where it has been operating since 2010, and less than 2% in Brazil, where it has been operating since 2012. It was still establishing its US operation.
When it comes to the big three, Anpario talks more of potential.
In China, it has nearly fifty key accounts with over 10,000 breeding sows each. It’s trying to increase its share of these accounts.
In the US it has introduced Orego-Stim (see below for an explanation of the products) in a number of states and some of its acidifier range noting interest from some of the largest poultry producers in the US. Small scale trials indicate a number of Anpario products reduce the incidence of porcine endemic diarrhoea virus, which has caused significant losses in the pig industry.
In Brazil Anpario continued to develop i
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