Anpario Reports 62% Profit Surge in Strong H1 2025 Interim Results

Regional performance: Americas leads, Asia robust, Europe steady, IMEA pauses

• Americas: sales up 97% including Bio-Vet, or 21% like-for-like. The US rebounded strongly with pHorce sales up 138% and ongoing progress for Orego-Stim. The US is now the largest single territory at 21% of Group sales. Brazil was the weak spot (-33%) due to intense local competition and tariffs, although actions are underway to reposition.
• Asia: sales up 25% (like-for-like growth across all sub-segments). Standouts included the Philippines, Indonesia, Thailand and Japan. China grew Orego-Stim and mycotoxin binders and is trialling Optomega Algae as a fishmeal replacement.
• Europe: up 17% including Bio-Vet, with strong performances in Israel, Switzerland, the UK and Denmark. The Netherlands saw 203% growth helped by water-soluble Orego-Stim Forte used in tuna feed.
• India, Middle East and Africa (IMEA): down 4%, mainly from the loss of pellet binder business in Saudi Arabia and a customer credit issue in Egypt. Excluding the lost pellet binder business, sales would have been up 11%. India and UAE were highlights.

Route-to-market is being tightened. Anpario is phasing out a single-distributor model in Central America and setting up subsidiaries in Colombia and Panama to get closer to end customers.

Margins and operating costs: scaling with discipline

Gross margin rose to 51.4%, aided by the richer mix and Bio-Vet’s slightly higher margin profile. Manufacturing efficiency at Manton Wood continues to help. Administrative expenses were £8.4m, up 37% (like-for-like +9%), with the main driver a £0.6m increase in people costs due to wage inflation, higher UK national insurance and greater headcount as the business scales.

Adjusted EBITDA of £4.1m reflects operational gearing – more of each extra pound of sales is dropping to profit as mix improves. The effective tax rate edged up to 18.9%.

Cash, inventory and dividends: funding growth while rewarding shareholders

Operating cash flow before working capital rose 41% to £3.7m, but a £1.7m working capital outflow, mainly inventory build of £2.1m, absorbed cash as the Group replenished stock and supported higher run-rate sales. Capital expenditure was modest at £0.3m.

Cash increased to £11.1m from £10.5m at 31 December 2024, even after a small share buyback of 29,000 shares at an average 336p (£0.1m). The interim dividend is 3.60p per share, payable on 28 November 2025 to shareholders on the register on 14 November 2025 (ex-dividend 13 November 2025).

Strategy in action: integration, innovation and direct engagement

The Bio-Vet integration is set to accelerate with a combined US structure, rebranding and cross-selling: Anpario will take Bio-Vet’s QuadriCal calcium bolus and Generator direct-fed microbial into new markets, while offering Anpario’s ranges to Bio-Vet’s dairy customers. Registrations are underway to bring Credence, the tablet water sanitiser, to the US – a product the Group also sees demand for in the Middle East and India.

On innovation, Orego-Stim Plus has launched, and a lysophospholipid product, AmpLIPhy, is in development to improve fat utilisation and potentially reduce feed costs. The Board points to a strong pipeline aligned to the structural shift toward natural, sustainable feed additives.

Risks and watch-outs

• Geographic bumps: Brazil’s competitive market and tariffs are hurting the local subsidiary; management is pivoting focus, including aquaculture and ruminants with Bio-Vet products.
• Customer concentration: standout wins, such as a large poultry integrator in India, can be lumpy. The team is broadening the customer base.
• Working capital: inventory was rebuilt and may remain higher with rising volumes. Cash is strong, but this is a lever to monitor.
• Macro/trade: management calls out ongoing trade and tariff disputes that could affect agriculture in certain geographies.

Outlook and my take

Management says H2 started strongly, with momentum carrying over from H1. With Bio-Vet fully earning out, integration benefits ahead, and subsidiaries being established in Central America, the commercial engine looks well tuned. The product mix keeps improving and the US turnaround – supported by pHorce and the dairy footprint – is notable.

The balance of positives (margin expansion, US recovery, innovation pipeline, cash backing) outweighs the negatives (Brazil, specific customer and credit issues, and inventory rebuild). For me, this read is clearly positive: a high-quality, IP-rich, natural additives business showing it can grow both top line and margin at the same time.

What to watch next:

• Execution of Bio-Vet cross-sell and registration of Credence in the US.
• Sustained growth of pHorce, Optomega Algae and Orego-Stim Plus across regions.
• Progress on Central American subsidiaries and the route-to-market shift.
• Working capital discipline as sales scale.

Bottom line: a strong interim from Anpario, with the business leaning into higher-value niches and showing operating leverage. If H2 continues as flagged, FY 2025 has the potential to be a step-change year.