2Agriculture has reported a surge in annual profits in its latest financial results. The business, which produced animal feed and trades live poultry, reported profits after tax of £6.85 million in the year ending 31 December 2022. The previous year the corresponding figure was £3.1 million.
Turnover increased by £101,9 million during the year to £499 million.· The Increase in feed sales reflects an increased selling price of29% driven by year on year increased raw material commodity prices. The increase In live bird sales is due to. a 4% volume increase, the company said.
There are exceptional costs in the year of £2,253,000 relating to the proposed joint venture with ForFarmers which was· abandoned in early 2023, following concerns raised by the Competition and Markets Authority.
Inflationary pressure on raw materials, energy, labour and transport seen during 2022, brought on by domestic and global market conditions, the war in Ukraine and effect of strength of Sterling continue to put added pressure on margins and working capital, the business said. 2 Agriculture said it had measures in place to manage inflation through the supply chain.
The. group said it would continue to invest in infrastructure to support the poultry supply chain and the. development of its employees.