Mole Valley Farmers makes loss after ‘challenging’ year
© Mole Valley Farmers Agricultural supply business Mole Valley Farmers made an operating loss of £4.2m for the year ending 30 September 2024.
It was described by the firm as “one of the most challenging years” in its trading history due to low consumer confidence and tough global supply chains.
This follows an operating loss of £7.6m during the previous financial year, when the company was hit by a “significant external IT incident”.
See also: Mole Valley Farmers sells off fertiliser site to Thomas Bell
Total turnover dropped by £51m to £559m from year-earlier levels.
Mole Valley Farmers remains a significant employer, with 55 retail sites and five feed mills; however, retails sales fell by 4.5% to £237m.
Chief executive Jack Cordery said: “Market conditions remained challenging during the trading year, with continued global conflicts impacting supply chains; while cost-of-living pressures and political change lead to uncertainty in the domestic market.
“All these factors weighed heavily, leading to increased cost of operations at a time when consumer confidence to spend or invest on-farm was limited.”
Following the IT incident in 2023, the company has been rebuilding its IT infrastructure, working to improve security and reduce costs.
In May last year, Mole Valley Farmers sold its fertiliser site at Newport in Wales to fertiliser importer Thomas Bell & Sons.
Despite the economic backdrop, the firm still managed to return £300,000 to farmer shareholders through its loyalty bonus scheme.
Cautious optimism
There is some cautious optimism for the year ahead, with greater volumes of animal feed being traded and improved retail sales of agricultural goods.
Mr Cordery added: “The Mole Valley Farmers business will need to change to adapt to the market dynamics; however, our core principles of a strong agricultural base, industry-leading advice and knowledge transfer, competitive products and commitment to UK agriculture remains consistent.
“We will continue to find ways to innovate and compete harder.”