Fevara FY25: A cleaner, leaner livestock supplements business
Fevara plc has posted a solid turnaround year as it completes its pivot to an international specialist in livestock supplements. The numbers show better margins, a return to profit in continuing operations, and a bold reshaping of the Group through disposals, cost reduction and a focused growth strategy.
Below I break down the key figures, what changed operationally, and why the newly announced push into Brazil matters for investors.
Headline numbers investors should note
| Metric (continuing operations) | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | £78.8m | £75.7m | +4.1% (+5.7% constant currency) |
| Adjusted operating profit | £3.7m | £2.2m | +69.2% |
| Operating profit/(loss) | £2.4m | £(6.8)m | Improved |
| Adjusted profit before tax | £4.2m | £2.5m | +67.0% |
| Profit/(loss) for the year | £3.0m | £(4.5)m | Improved |
| Adjusted EPS | 4.4p | 2.6p | +69.2% |
| Net cash | £2.6m | £8.0m | Lower after tender offer and escrow |
| Total dividend per share | 2.4p | 5.20p | -53.8% |
Group-level profit benefited from discontinued operations of £16.9m, largely the gain on selling most of the Engineering Division, taking total profit to £19.9m and basic EPS to 23.1p.
Quick jargon buster: “Adjusted” strips out one-off items to show underlying trading; “constant currency” removes FX swings; EPS is earnings per share.
Strategy in action: exit engineering, focus on feed
FY25 was about execution. Fevara completed the sale of the majority of its Engineering Division for an enterprise value of £75m in April, then returned £70m to shareholders via a tender offer in June, cancelling 42,944,785 shares – roughly 45% of the register. That shrinkage helps future per-share metrics.
The name change to Fevara plc underscores the sharper identity. Central costs have been cut, with run-rate now about 65% of FY24’s level, and non-core properties have been sold. The pension scheme moved to a buy-in, with £4.6m held as restricted cash in escrow while data is finalised.
Where the growth came from: UK/Europe strong, US steady
- UK/Europe revenue rose 8.4% to £41.4m and adjusted operating profit jumped 66.7% to £2.8m, led by the Caltech business and strong demand for Crystalyx-branded products.
- US revenue was broadly flat at £37.4m (up 2.9% at constant currency) with adjusted operating profit unchanged at £3.5m despite a tougher beef cattle backdrop.
Margins moving the right way
- Caltech gross margin improved from 17% to 28% as product mix and procurement tightened up.
- Scotmin moved from 8% to 14% after rationalising legacy lines and focusing on bagged minerals and concentrates.
- The US Division lifted gross margin from 19.6% to 21.0% as utilisation improved at Belle Fourche.
Operational reshaping continued: Fevara closed the Animax manufacturing site in the UK and outsourced production, while the loss-making Afgritech commodity feed business in the US was closed and sold. A new manufacturing partnership with Vétalis in France will support an advanced range of Tracesure boluses, and Tracesure Advanced launched in November. New Zealand distribution moved to Seales Winslow and is already delivering better volumes and margins.
Cash, balance sheet and dividends
Operating cash generation from continuing operations was £3.9m, equal to 112% of adjusted EBITDA, with capex of £1.3m. Year-end net cash stood at £2.6m (excluding £4.6m restricted cash earmarked for the pension process), down from £8.0m reflecting the tender offer and escrow funding.
Post period-end, Fevara put in place a new banking facility with HSBC comprising £20m of committed revolving credit and £10m of uncommitted facilities, expiring November 2028 with extension options. Revolving credit facility (RCF) is a flexible corporate loan you can draw, repay and redraw as needed.
The Board proposes a final dividend of 1.2p, taking FY25 to 2.4p (FY24: 5.2p). Importantly, Fevara is shifting to a progressive dividend policy targeting cover of at least 2x. That should align shareholder returns with reinvestment in higher-margin growth.
First step into Brazil: the Macal acquisition
On 3 December 2025 Fevara agreed to acquire Domino Industria E Comercio LTDA (Macal) in Campo Grande, Brazil, for initial consideration of £5.0m with £0.8m to £1.9m payable in March 2028 subject to performance. Completion is expected before the end of January 2026.
Why this matters: Brazil has a cattle herd of over 200 million head. Macal is established and cash generative, providing a credible local platform. Management expects the deal to be earnings and margin accretive in FY26 – accretive means it should lift EPS and blended margins versus the current base.
Outlook and current trading
The key northern hemisphere winter trading season has started strongly. Management says the outlook for existing markets is ahead of last year and in line with expectations. The Macal deal and the new HSBC facility underpin plans to expand into complementary, counter-seasonal southern hemisphere markets.
My take: the investment case after the pivot
What’s going right
- Clear focus pays off: exiting engineering, cutting central costs and rationalising low-margin products has driven a 69.2% jump in adjusted operating profit on modest revenue growth.
- Margin recovery is tangible: UK/Europe margin gains at Caltech and Scotmin suggest structural improvements, not just cost timing.
- Shareholder-friendly actions: returning £70m and cancelling ~45% of shares tightens the equity and supports EPS compounding from here.
- Growth option secured: Macal opens Brazil, one of the world’s largest cattle markets, with scope to introduce Fevara’s higher-margin brands.
What to keep an eye on
- One-off boost in FY25: the £16.9m profit from discontinued operations inflates total EPS; underlying continuing progress matters more for valuation.
- US cycle risk: cattle numbers have been declining; further softness could cap US volumes despite internal improvements.
- Execution in Brazil: integrating Macal and rolling out premium products will take time and local know-how, though the business is established.
- Pension and cash: restricted cash of £4.6m and a £2.9m retirement benefit obligation remain watch items until the buy-in process is fully settled.
- Dividend reset: the cut to 2.4p may disappoint income holders, but the new 2x cover target sensibly supports reinvestment.
Bottom line
Fevara has delivered what it set out to do: simplify, focus and rebuild profitability in its core livestock supplements franchise. With stronger margins, disciplined cash generation, a refreshed leadership team and a first move into Brazil, the company looks better positioned for sustainable, higher-quality growth. Near-term, watch the critical winter trading season, US market conditions and the completion of Macal. If management continues to execute, FY26 could see the step-up from strategy to scale.
