NWF Group (LSE:NWF) has maintained its expectations for the full financial year after reporting mixed first-quarter trading across its Fuels, Food and Feeds divisions.
The company provided the update ahead of the winter period, which is seasonally important for its operations.
NWF said its longer-term strategy continues to focus on investment, operational improvements and targeted acquisitions.
Hot Summer Reduces Heating Oil Demand
In the Fuels division, record-high UK summer temperatures reduced demand for domestic heating oil during the quarter.
NWF also reported increased competition within commercial fuel markets, while oil prices remained volatile amid tensions in the Middle East.
Food Volumes Increase on Contracted Demand
The Food division recorded higher storage and throughput volumes, supported by contracted demand.
The level of demand required NWF to use additional offsite storage capacity. The company is also planning to expand its national warehouse and transport network.
Feeds Reports Higher Volumes
NWF’s Feeds division reported increased volumes during the period, while margins remained stable.
The company said the performance was supported by new business wins and higher milk prices.
Despite differing trading conditions across its three divisions during the first quarter, NWF left its expectations for the full financial year unchanged.
About NWF Group
NWF Group operates three specialist distribution businesses in the UK across Fuels, Food and Feeds.
The Fuels division supplies domestic and commercial fuels, while Food provides logistics and storage services. The Feeds business manufactures and distributes animal feed.
Leave a Reply