NWF Group PLC on Thursday remained optimistic about the year ahead, despite seeing profit fall annually on challenging market conditions.
For the year ended May 31, the Cheshire, England-based distributor of fuel, food and feed expects to report results ‘in line with market expectations’.
Accordingly, headline pretax profit should fall 35% to £12.7 million from £19.6 million a year prior, and operating profit by 31% to £14.5 million from £21.0 million.
This decline was down to a ‘previously expected’ normalisation in the Fuels and Feed markets.
The market continued to experience stable supply conditions and competitive pricing of diesel and gas oil from ‘abnormally elevated’ levels the year prior, given a decline in demand for heating oil.
This led to a lower operating profit pence per litre, which is expected to continue in the next financial year, NWF explained.
Meanwhile, in Feed, volumes fell behind the previous year as ideal grass growing conditions across the summer and autumn provided farmers with significant forage for the winter.
Weaker milk prices and reduced volatility in raw material prices also impacted the segment.
By contrast, NWF Group’s Food business traded ‘strongly’, and ahead of the previous year.
Storage volumes reached a peak of just over 146,000 pallet spaces in financial 2024, compared to 126,000 pallet spaces in financial 2023. Pallet throughput was higher than the prior year, reflecting the high storage levels.
‘NWF has delivered a solid financial performance as it experienced more challenging conditions than in recent years,’ said Chief Executive Chris Belsham.
Looking ahead, Belsham added: ‘The investment in the new Lymedale warehouse to meet the growing customer demand in our Food business has progressed in line with plan which will support the future growth of the business.’
‘We continue to focus on our long-term growth strategy of development through targeted acquisitions, organic investment including significant investment in new fleet and improvement initiatives, supported by our strong financial position and confidence in NWF’s potential and prospects.’
Shares in NWF Group were 1.3% higher at 194.50 pence each in London on Thursday afternoon.
Copyright 2024 Alliance News Ltd. All Rights Reserved.
