Anpario PLC  

Anpario PLC (LSE: ANP) is an FTSE AIM All-listed United Kingdom-based independent manufacturer, specializing in natural and sustainable feed additives for animal health, nutrition, and biosecurity. The company is dedicated to enhancing intestinal health and nutrition in animals, offering feed additive solutions tailored for poultry, ruminants, swine, aquaculture, and feed mills. This Report covers the Investment Highlights, Conclusion, and Recommendation on the stock.

Key Recommendation Rationale – Sell at GBX 408.84

• Cash Balance Decline Despite Profitability: Year-end cash, cash equivalents and short-term investments slipped to £10.5m (2023: £10.6m) despite an 88% rise in profit before tax and operational cash generation. This flat-to-declining liquidity highlights the impact of the £4.3m Bio-Vet acquisition outlay and indicates limited incremental cash build compared to earnings momentum.
• Regional Weakness in Key Markets: While overall Group sales rose 23%, performance in the United States fell 28% (excluding Bio-Vet) and Brazil dropped 20%, reflecting structural challenges from tariffs on US pork exports, avian influenza outbreaks, and intense local competition. These weaknesses offset gains elsewhere and underscore geographic vulnerabilities in major agricultural markets.
• Weighted Average Selling Price Decline: The Group’s weighted average selling prices fell 9%, driven by decent volume growth in lower-value, price-sensitive products such as acid-based eubiotics and toxin binders. Although volumes rose 27%, this mix effect pressured pricing power and raises concerns about future margin sustainability if demand normalizes.
• Macroeconomic Risk: The market sentiments can remain weak in the short term due to the subdued consumer disposable income, geopolitical tensions, and political risks.

Share Price Chart 

Valuation Methodology: Price/ Earnings Approach

Conclusion

ANP’s valuation may face pressure as the sector contends with weak global economic sentiment, regulatory headwinds, supply chain disruptions, rising raw material costs, potential U.S. tariffs, and intensified competition driving price wars. For conducting the valuation, the following peers have been considered: Glanbia PLC (LSE: GLB), Kerry Group PLC (LSE: KYGA), etc.

Given its current trading levels, the recent financial performance, strategic investments and partnerships, market expansion and cost optimization strategies, relative valuation, and associated risks, it is prudent to exit the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the Current Market Price of GBX 408.84 on 02 September 2025, 10:55 AM, GMT+1.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 02 September 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.