Mole Valley Farmers reports revenue growth of 10% and an increase in annual profits for the year ending September 2021, leaving the business well placed to maintain investment and support for the agricultural community.
Despite a year of lockdowns, supply chain disruptions and cost inflation, the farmer-owned business achieved a revenue of £522m and a post-tax profit of £3.8m.
This uplift in revenue was due to strong sales across the retail business and some element of inflation in key agricultural products and animal feeds. The growth in retail revenue was buoyed by an increase in Country Members, with numbers rising by 35% to over 34,000. Total membership now stands at 99,000, a 21% increase this year.
Mole Valley Farmers’ CEO Jack Cordery said the ultimate aim of the Group was to ensure a strong and responsive business that would help its farming customers to improve long-term productivity, profitability and sustainability.
“We have continued to take a prudent approach to costs and focused on reducing spend and driving efficiencies,” he explained. “We have invested in our commercial teams, our manufacturing capability, our stores, new product development and systems and processes to ensure we remain agile and efficient. Ultimately this is about achieving our aim of being ‘the lowest cost operator in the market’ with the highest levels of service.”
In recognition of the crucial role Farmer Shareholders and Country Members play in supporting the business, Mole Valley Farmers developed a Loyalty Bonus Scheme for Shareholders for the financial year 2021/22. Over £2m was also returned to Shareholders and Country Members in point of sale benefits in 2020/21.
To help farmers navigate changes in environmental policy and reduce their impact on the environment, the business launched its Climate Positive Agriculture initiative in 2021. As part of the initiative, Mole Valley Farmers became the first feed business to include the carbon footprint on the label of all if its conventional cattle and sheep compounds and blends.
The feed market was one of the most challenging for Farmer Shareholders and customers this farming year. Rising raw material prices, energy costs and supply chain disruption impacted all parts of the feed sector. At 910,000t of manufactured and traded feed, overall ruminant feed volumes were in-line with last year on a like-for-like basis given the decision to reduce third party manufactured volumes.
Jack added: “Challenging trading conditions are likely to continue in the year ahead, thanks to continued supply chain challenges, cost inflation, dealing with the implementation of Brexit and the ever developing environmental agenda. However Mole Valley Farmers is in a strong position to continue to deliver value and service to our feed and rural customers, who are at the heart of everything we do.
“I’d like to thank them, together with the Mole Valley Farmers team for their continued support.
As a farmer owned business, we are proud to support and serve the people who own the business. We believe in the power of collaboration and cooperation and by working together we can use our combined scale to deliver better value to our Shareholders.”
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