Fuel, food and feed distributor NWF produced record results for the year ended 31 May 2022, with profit before tax up 11% at £12m.
Operating profit for the former farmer co-op jumped 69% to £21.8m, with fuel distribution contributing a significant part of this.
There was significant outperformance in fuels as a result of volatility in oil prices in the final quarter, together with short-term benefits arising from periods when the UK market was supply constrained, said the company.
Commenting on the results, market analyst Shore Capital noted that there had been no major fuel supply issues for NWF, which has 50% of its supply contracted with major oil producers.
Net profit on fuel, at 2.6p/litre in the year ended 31 May, was considerably higher than the past target of 1p/litre.
The feed division recorded a headline operating profit of £1.8m (2021: £1.7m).
It saw a strong recovery in the second half, following a disappointing first half, successfully navigating unprecedented volatility and increases in feed commodities, supported by an increasing milk price across the country, said the company in its report to the Stock Exchange.
The food division performance was described as solid.
A total dividend of 7.5p/share is proposed, a 4.2% increase on the year.
Richard Whiting, NWF Group chief executive, said: “NWF has delivered a record set of results, significantly ahead of the market expectations at the start of our financial year. It has been delivered by focusing on service to our customers across the country, and our teams responding effectively to unprecedented volatility in cost inputs and issues of supply availability.
“Oil and feed commodities were particularly impacted in our final quarter, as a consequence of the conflict in Ukraine. The group has established a strong track record of resilience and performance, and we are excited by the opportunities across the group to continue our development.”
NWF highlights – year ended 31 May 2022 (2021)
- Revenue – up 30% at £878.6m (£675.6m)
- Headline profit before tax (before exceptional items) – up 75.6% at £20.9m (£11.9m)
- Statutory declared profit before tax – up 11.1% at £12m (£11.1m)