Anpario PLC on Wednesday said its half-year profit plunged amid higher costs, while a reduction in revenue was driven by a drop in sales due to lower demand.

In the six months ended June 30, the Nottinghamshire-based animal feed additive manufacturer said pretax profit fell by 42% to £1.4 million from £2.4 million a year prior, as administrative expenses grew by 20% to £5.5 million.

Revenue edged down by 7.3% to £15.3 million from £16.5 million. The company said that while it experienced sales growth in the US and Australasia, this was offset by a fall in Europe and Latin America. The firm also noted lower demand due to ‘reduced levels of meat production and price pressures leading some producers to switch to lower quality and cheaper alternatives.’

Anpario upped its half-year dividend by 1.6% to 3.20 pence per share from 3.15 pence in the first six months of 2022.

Looking ahead, Chief Executive Officer Richard Edwards commented: ‘The ideal scenario for Anpario is a balanced supply of meat protein such that producers are profitable, and the price is affordable for consumers to increase consumption of meat products.

‘The growth drivers across the meat protein industry remain intact, and the regulatory environment is continually moving towards natural and sustainable feed additive solutions, which gives us confidence in the long-term profitable development of the company.’

Shares in Anpario were down 4.7% on Wednesday at 216.75 pence each in London on Wednesday morning.

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