Fevara flags FY26 profit ahead of expectations as EBIT jumps 60%

Fevara PLC has ended its 2026 financial year with stronger profitability, solid underlying revenue growth and a better-than-anticipated net debt position.

The international livestock supplements specialist expects adjusted earnings before interest and tax, or adjusted EBIT, of approximately £6.0 million. That is around 60% higher than last year and ahead of company-compiled analyst consensus of £5.5 million.

Revenue is expected to reach approximately £86 million, compared with £78.8 million in FY25. On a like-for-like basis, which aims to show growth after adjusting for changes such as acquisitions and disposals, revenue increased by 8%.

For investors following Fevara PLC, the key message is that the group's restructuring and growth strategy appears to be feeding through into profit at a faster rate than sales.

Fevara's FY26 trading figures

Metric	FY26 expected	FY25	Change or comparison
Revenue	Approximately £86 million	£78.8 million	8% like-for-like growth
Adjusted EBIT	Approximately £6.0 million	£3.7 million	Around 60% growth
Adjusted EBIT consensus	£5.5 million	Not disclosed	FY26 expected to be around 9% ahead
Year-end net debt	Approximately £2.0 million	Not disclosed	Better than previously anticipated

The revenue outcome is broadly in line with expectations rather than a major beat. Company-compiled consensus stood at £86.3 million on 29 September 2026, slightly above the approximately £86 million now expected.

Profitability is the more important feature. Adjusted EBIT is expected to exceed consensus by approximately £0.5 million, or around 9%. Based on the headline figures, the adjusted EBIT margin would be roughly 7.0%, up from around 4.7% in FY25.

That margin improvement suggests Fevara generated significantly more operating profit from each pound of revenue. However, the announcement does not provide a detailed bridge explaining how much came from pricing, product mix, cost reductions or other factors.

Established markets drove the performance

Fevara said its UK, European and US businesses all performed well. Sales of Low Moisture Blocks, a type of livestock supplement designed for gradual consumption, continued to grow.

The geographic spread is encouraging. The performance does not appear to depend on a single established market, while Brazil performed as expected during the period following its acquisition.

Still, this is a broad trading update rather than a full results statement. Fevara has not disclosed regional revenue, regional margins or product-level growth rates. Investors will need the full-year results for a clearer view of the quality and balance of growth.

The original company announcement also confirms that trading during the opening weeks of FY27 has been encouraging and in line with expectations.

Better cash conversion supports the balance sheet

Fevara finished FY26 with net debt of approximately £2.0 million, better than management had previously anticipated.

The company attributed this to strong trading cash conversion, expected property disposals and the sale of Chirton Engineering. Cash conversion matters because accounting profit is most useful when it translates into cash that can reduce debt, fund investment or support acquisitions.

Fevara sold Chirton in August 2026 for £0.65 million, with another £0.2 million deferred over two years. The disposal completed the strategic review intended to simplify the group, right-size the business and turn Fevara into a pure-play livestock supplements specialist.

The precise earlier net debt expectation was not disclosed in this announcement, so the scale of the improvement cannot be quantified.

New borrowing facility provides acquisition headroom

During FY26, Fevara completed a new £20 million revolving credit facility with HSBC. A revolving credit facility, or RCF, allows a business to borrow, repay and redraw funds within an agreed limit.

The committed facility runs to November 2028, with two further one-year extension periods available. The agreement also provides access to a further £10 million uncommitted facility over the same period.

This funding helped Fevara complete acquisitions during FY26 and gives it headroom for further strategic deals and organic growth. That flexibility is useful, particularly as the group expands internationally.

It also brings a point for investors to monitor. Acquisition capacity can accelerate growth, but future transactions still need to produce attractive returns without stretching the balance sheet. The company has not disclosed any imminent targets or a planned acquisition timetable.

Brazil is the main strategic growth project

Fevara entered Brazil through the acquisition of Macal in December 2025. It followed that move by acquiring a high-specification production facility in São Paulo State, announced in March 2026.

Installation of Low Moisture Block production equipment is now under way, with the product launch scheduled for the fourth quarter of FY27.

Brazil therefore represents a longer-term opportunity rather than a major immediate contributor to the FY26 profit beat. The business performed as expected following acquisition, but the new production operation has not yet reached launch.

Management said it was particularly encouraged by the long-term growth opportunity in the country. Investors will want to watch the installation timetable, launch progress and evidence that Brazilian expansion can generate profitable sales at an acceptable return on invested capital.

Medium-term targets remain ambitious

Fevara reiterated its medium-term targets:

• Revenue of £120 million
• Adjusted EBITDA of £15 million
• An adjusted EBIT margin of 10%
• Return on capital employed, or ROCE, of 20%

EBITDA is earnings before interest, tax, depreciation and amortisation. ROCE measures how effectively a company generates operating profit from the capital invested in the business.

Against expected FY26 revenue of approximately £86 million, the £120 million goal requires substantial further growth. The expected adjusted EBIT margin of roughly 7.0% also remains below the 10% target.

That leaves meaningful work to do, but the FY26 update provides evidence of movement in the right direction. Profit is growing faster than revenue, net debt is better than expected and the group has completed its strategic simplification.

What investors should watch next

The positive case rests on improved profitability, growth across established markets, cash generation and a clearer operational focus. Brazil adds a potentially important new growth platform, while the HSBC facility provides financial flexibility.

The main caveat is the limited detail. Revenue is slightly below company-compiled consensus, the sources of margin improvement are not broken down and the Brazilian production launch is still some way off. Further acquisitions could also introduce execution and financing risks.

For now, Fevara's FY26 performance looks stronger where it matters most: operating profit and cash conversion. The next full results should show whether the improvement is broad-based and how much progress remains before the medium-term margin and return targets come within reach.