Wynnstay expecting profits to beat market expectations

Agricultural supplies group Wynnstay expects pre-tax profits for the year to October 2022 to exceed current market expectations.

Wynnstay has sites and customers across the region
Wynnstay has sites and customers across the region

The Llansantffraid-based group, which has sites and customers across the region, said the expected rise in profits was as a result of the sharply rising fertiliser commodities prices it had experienced during the year to date.

The price rise has been caused by significant increases in the world price of natural gas, which is used to produce ammonium nitrate fertiliser.

Since Wynnstay first commented on the price rises at its AGM in March, fertiliser commodities prices were said to have remained abnormally high, reflecting the consequences of military conflict in Ukraine, including the disruption of supplies from Russia.

Group revenue will also be significantly increased by commodity price inflation across all activities, including feed, although the group's absolute unit margin model means that its operating profit will not benefit proportionately.

Interim results are expected to be reported at the end of June/early July when the board also will provide a further update on trading.

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