Agricultural supplies group Wynnstay sees profit and revenue increase
Agricultural supplies business Wynnstay has reported record interim results, ahead of original management expectations.
The Llansantffraid-based group, which has sites and customers across the region, said revenue for the six months to April 30 was up 34 per cent to £335.6 million, compared to £249.7 million a year earlier. Meanwhile, underlying pre-tax profit was up 85 per cent to £10.2 million compared with £5.5 million in 2021.
It said these results were driven by a firm market backdrop, with strong farmgate prices boosting farmer sentiment. It also said it made significant one-off gains from fertiliser blending activities at Glasson.
In its Agriculture Division, revenue was up 45 per cent from £18.7 million to £263 million. Feed volumes were up 3.25 per cent, ahead of sector average, with good growth in target markets
Gain trading volumes increased 50 per cent, which reflected a return to a more normalised harvest and good autumn planting season.
In its Specialist Agricultural Merchanting Division, revenue was up five per cent from £68.8 million to £72.6 million.
Wynnstay said sales of bagged feed, animal health care and hardware products were strong in the period.
Looking ahead, the group said trading conditions remain positive, underpinned by firm farmgate prices.
The board believes the group is well-placed to achieve growth prospects for the full-year, but the exceptional gains of the first half of the year are not expected to be repeated in the second.
Wynnstay remains focused on acquisitions in key target areas, it added.
Gareth Davies, chief executive of the group, said: “These record interim results have been underpinned by a favourable sector backdrop, with strong farmgate prices across most sectors and positive farmer sentiment, as well as significant one-off gains in our fertiliser blending activity.
“The acquisition of Humphrey Feeds and Pullets is exciting. It significantly extends our geographic reach and opens up new growth opportunities.
“While there are still challenges with cost inflation and supply chain pressures, sector sentiment remains strong, and we are confident about achieving our growth goals for the full-year.”
