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NWF sees half-year profit and revenue fall on price volatility

31st Jan 2024 11:13

(Alliance News) - NWF Group PLC on Wednesday reported a drop in its interim profit and revenue, citing lower pricing within some of its divisions.

The Cheshire, England-based distributor of fuel, food and feed said headline pretax plunged 45% to GBP3.4 million in the six months to November 30 from GBP6.2 million the year before. The prior year had benefitted from "significant outperformance" from volatility in commodity prices in its Fuels and Feed division, it explained.

Reported pretax profit fell 36% to GBP3.8 million from GBP5.9 million.

Revenue fell 13% to GBP472.9 million from GBP541.8 million the year before due to lower commodity prices in its Fuels and Feed divisions.

Fuels revenue dropped 14% to GBP344.8 million from GBP401.8 million in the first half of financial 2023, while Feeds revenue was 15% lower at 88.6 million from GBP104.0 million.

The firm left its interim dividend unchanged year-on-year at 1.0 pence per share.

Looking ahead, NWF said trading expectations remain unchanged, adding that the second half of its financial year is "seasonally more significant."

Chief Executive Chris Belsham said: "We have experienced a more challenging first half than in recent years, but our underlying expectations for the full year remain unchanged. Our performance in Food has been particularly positive and has in part offset the less supportive market conditions in Fuels and Feeds. Our recently announced investment in the new Lymedale warehouse highlights the growing customer demand in the Food business, increasing our capacity by 39%.

"We continue to focus on our long-term growth strategy of development by both organic investment and through targeted acquisitions, supported by our strong financial position and confidence in NWF's potential and future prospects."

Shares in NWF fell 7.4% to 210.66 pence each in London on Wednesday morning.

By Sabrina Penty, Alliance News reporter

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