Feed business ForFarmers has reported an increase in annual sales and profits in its latest accounts covering the year ending 31 December 2021.
Revenue grew to £557 million during the year, up from £524 million during 2020, while profits after tax reached £2.45 million in 2021, up from £1.58 million the year before.
However the gross margin percentage for 2021 was slightly down, at 10%. During 2020, it was 12%.
The company’s strategic report describes its growing emphasis on sustainable sourcing of feed materials. It states ForFarmers has a target to source palm oil and soymeal sustainably by 2025 and at the same time to have set the ambition to source all feed materials sustainably by 2030.
Logistics costs rose during the year covered by the results. While Brexit did not have an immediate impact on the business, the resulting labour shortages when European workers returned to their home nations meant the company had to increase wages in order to retain drivers.
The company said it expects continuing pressure on margins and costs during 2022. Energy prices are forecast to rise substantially due to the war in Ukraine, and ForFarmers expects raw material costs to remain high. During the first half of 2022, the total feed volume declined 4%, driven by rising raw material and supply chain costs.
Last month, ForFarmers and 2Agriculture announced they had come to an agreement to merge their businesses into a joint venture in the UK. The joint venture will have an expected combined sales volume of more than 3 million tonnes of compound feed per year.
The companies said the joint venture would make for a robust business, with improved expertise and presence across species.