2 Agriculture Limited has reported a profit after taxation of £6.9 million for the year ended 28 December 2024, a sharp rise from £4.7 million the previous year, despite facing significant pressures from fluctuating commodity prices and global economic uncertainty.
The company, which specialises in feed production and live bird trading, saw turnover fall by £42.8 million to £449.9 million. This was largely due to a decline in feed sales caused by an 11% reduction in selling prices linked to lower raw material costs, alongside a £2.3 million drop in live bird sales.
However, lower costs helped offset the revenue decline. Cost of sales reduced by £43.7 million, driven by cheaper feed raw materials, allowing the company to deliver an operating profit of £8.9 million (2023: £6.8 million). Distribution costs rose by £624,000 due to higher wages, but administrative expenses fell by £1.76 million, largely from lower utility costs.
The business continues to face strategic risks, including volatile demand for British poultry, rising input costs, and exposure to disease outbreaks or food safety issues. Inflationary pressures on raw materials, energy, and labour, as well as global market volatility linked to the war in Ukraine, remain ongoing challenges.
Despite these risks, 2 Agriculture has committed to continued investment in milling infrastructure and employee development. The company highlighted measures in place to mitigate supply chain risks and inflationary pressures, while closely monitoring commodity pricing to protect margins.
Key performance indicators showed improvement across the board, with gross margin rising to 10.4% (2023: 9.3%) and return on capital employed climbing to 38.9% (2023: 27.6%).
No dividend was paid during the year, as the company focused on reinvesting profits into operational efficiency and long-term sustainability.