Strong farmer sales help Wynnstay post record results

Agricultural supply group Wynnstay has reported record results for 2021 after benefiting from improved farmer sentiment, strong farmgate prices and increased fertiliser blend demand.

In the year to 31 October 2021, the Powys-based company’s total revenue was up 16% to £500.39m (2020: £431.4m) and pre-tax profit increased to £10.99m (2020: £6.98m).

The group’s agriculture division rebounded on a quieter 2020 to see revenue up 19% to £358.96m (2020: £302.58m) and operating profit contribution up 47% to £4.22m (2020: £2.88m).

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Total feed volumes were up 6.5% on the previous 12 months, but after higher production and distribution costs, operating profit remained about the same.

The improved performance was partly down to arable businesses returning to more usual harvest tonnages and yields, and a good autumn 2021 planting season, according to Wynnstay.

The biggest change was in the performance of subsidiary company Glasson Grain, the UK’s second-largest fertiliser blending operator, which had a significant one-off benefit from the threefold increase in selling prices towards the end of the financial year. 

Gareth Davies, chief executive of Wynnstay Group, said: “These record results reflect the significantly improved trading environment, as well as our initiatives to drive growth, productivity and efficiency.

“Strong farmgate prices and the lifting of uncertainties around Brexit and future financial support have promoted a return to farm investment. Results also benefited from a strong second half across the group, especially for our arable operations.

“Trading in the new financial year has begun well, in line with our expectations.”