Overview

  • UK agricultural supplier's H1 revenue was flat, with adjusted operating profit up nearly 10%

  • Adjusted EPS rose 15.5% as Project Genesis drove improved margins and efficiency

  • Company increased interim dividend, citing stronger cash generation and balance sheet

Outlook

  • Company says trading in H2 has started in line with board expectations

  • Wynnstay expects full-year results in line with current market expectations, improving on FY25

  • Company highlights strong fertiliser order book and continued operational improvements

Result Drivers

  • PROJECT GENESIS - Operational efficiencies, cost base reductions, and improved commercial execution under Project Genesis drove higher profitability across the group

  • FEED & GRAIN IMPROVEMENT - Profitability in Feed & Grain rose due to the unified GrainLink trading platform, improved margins, and closure of loss-making operations

  • ARABLE GROWTH - Higher manufactured fertiliser volumes and the Avonmouth blending facility supported improved profit in Arable

Company press release:

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Revenue

GBP 304.10 mln

H1 Net Income

GBP 4.93 mln

H1 Adjusted Operating Profit

GBP 5.80 mln

H1 Adjusted Pretax Profit

GBP 6 mln

H1 Gross Profit

GBP 42.30 mln

H1 Operating Profit

GBP 6.10 mln

H1 Pretax Profit

GBP 6.20 mln

Analyst Coverage

  • The one available analyst rating on the shares is "buy"

  • The average consensus recommendation for the food processing peer group is "buy"

  • Wall Street's median 12-month price target for Wynnstay Group PLC is GBp500.00, about 42.9% above its June 26 closing price of GBp350.00

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

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