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Lochem, 2 November 2021
ForFarmers third quarter 2021 Trading Update
Highlights third quarter 20211:
Volume Total Feed2: down by -1.4%
Volume compound feed: up by 1.0%; due to acquisitions and like-for-like growth in Germany/Poland, decline elsewhere
Gross profit: up by 2.6%; due to acquisitions and better product mix with more compound feed
Underlying EBITDA: down by 22.0%; due to significantly higher energy prices and despite structural organisational cost savings.
Yoram Knoop, CEO of ForFarmers: “Our total volume has decreased in the third quarter as a result of the continuing challenging market circumstances. However, the two acquisitions which we made at the beginning of the year and our Polish activities realised good results. Our gross profit rose accordingly.
During this quarter we have also made progress with structural cost savings as part of our efficiency programme. However, the increase of energy prices was so substantial that this has led to a significant decrease of underlying EBITDA. How energy prices in particular will develop is unpredictable. We therefore refrain from providing an outlook for the results in the fourth quarter of 2021. Further and faster implementation of the strategy Build to Grow, including our efficiency programme, has the highest priority. We aim to enhance our positions through M&A, in our home countries but also possibly beyond. The intent is to create a better geographical balance of activities. Within the strategy, and given our strong balance sheet, we are also looking at alternatives for capital allocation. We will report about this shortly. In this light, we also intend to distribute a dividend per ordinary share over the year 2021, which is comparable to the dividend over 2020. Finally, we have also changed our management structure to be more agile and decisive in our local markets.”
Results and developments of the third quarter 2021 are compared to those of the third quarter 2020, unless stated differently
Total Feed covers the entire ForFarmers product portfolio and comprises compound feed, specialties, co-products (from the feed industry, referred to as DML products), seeds and other products (such as forage)
This press release contains information that qualifies as inside information in the sense of Article 7 paragraph 1 of the EU Market Abuse Regulation.
Note to the editor / For additional information:
Caroline Vogelzang, Director Investor Relations
T: 0031 573 288 000 M: 0031 6 10 94 91 61
About ForFarmers N.V.
ForFarmers N.V. is an international organisation that provides complete innovative feed solutions to the livestock farming industry. With its ‘For the Future of Farming’ mission ForFarmers is committed to the continuity of farming and to further increasing the sustainability of the agricultural sector.
ForFarmers is the market leader in Europe with annual sales of around 10 million tonnes of animal feed. The company is active in the Netherlands, Belgium, Germany, Poland and the United Kingdom. ForFarmers has approximately 2,500 employees. In 2020 revenue amounted to approximately €2.4 billion. ForFarmers N.V. is listed on Euronext Amsterdam.
ForFarmers N.V. is listed on Euronext Amsterdam.
This press release contains forward-looking statements, including those relating to ForFarmers legal obligations in terms of capital and liquidity positions in certain specified scenarios. In addition, forward-looking statements, without limitation, may include such phrases as “intends to”, "expects“, “takes into account”, "is aimed at “, ''plans to”, "estimated" and words with a similar meaning. These statements pertain to or may affect matters in the future, such as ForFarmers future financial results, business plans and current strategies. Forward-looking statements are subject to a number of risks and uncertainties, which may mean that there could be material differences between actual results and performance and expected future results or performances that are implicitly or explicitly included in the forward-looking statements. Factors that may result in variations on the current expectations or may contribute to the same include but are not limited to: developments in legislation, technology, jurisprudence and regulations, share price fluctuations, legal procedures, investigations by regulatory bodies, the competitive landscape and general economic conditions. These and other factors, risks and uncertainties that may affect any forward-looking statements or the actual results of ForFarmers, are discussed in the last published annual report. The forward-looking statements in this press release are only statements as of the date of this document and ForFarmers accepts no obligation or responsibility with respect to any changes made to the forward-looking statements contained in this document, regardless of whether these pertain to new information, future events or otherwise, unless ForFarmers is legally obliged to do so.