Wynnstay FY24 results seen 'materially lower' than expectations

2nd Oct 2024 09:21

(Sharecast News) - Agricultural supplies group Wynnstay warned on Wednesday that its FY24 results would be "materially lower" than both current market expectations and FY23 as a result of "more challenging conditions" during "seasonally important" months in H2.

Wynnstay said there were two main factors behind the shortfall, the underperformance of its feed division and of the fertiliser blending operation.

The AIM-listed group's feed division was said to have experienced a weaker H2 performance, driven by lower volumes relative to a market that has only grown marginally year-on-year, while margins in its fertiliser blending operation were "significantly impacted" by falling market prices during the later summer and autumn months.

Wynnstay added that other areas of its arable activities had performed in line with management expectations overall.

Looking forward, Wynnstay said it has a "well-established market position" and benefits from both a strong balance sheet and good cash flows.

"While there are a number of headwinds in the short-term, the board expects a better outlook for the livestock and dairy sectors and anticipates an improved financial performance in FY25 compared to FY24. The group will continue to focus on operational improvements and efficiencies and continue to invest for the future," said Wynnstay.

As of 0920 BST, Wynnstay shares had sunk 8.13% to 294.0p.

Reporting by Iain Gilbert at Sharecast.com