Lochem, 30 October 2020
ForFarmers third quarter 2020 Trading Update
Highlights third quarter 20201:
Volume Total Feed2: down (-2.8%); smaller decline than in H1-2020; stable in cluster Germany/Poland, decline in clusters Netherlands/Belgium and the United Kingdom
Volume compound feed: down (-3.7%); also smaller decline than in H1-2020; almost stable volumes in cluster Germany/Poland, decline in clusters Netherlands/Belgium and the United Kingdom
Gross profit: down (-6.8%); specifically due to volume decline; margin pressure in Poland and due to temporary deterioration of product mix also in the United Kingdom
Underlying EBITDA: down (-9.4%); lower operating expenses could not compensate gross profit decline
First phase efficiency plan 2021 & 2022:
€7 million cost savings, of which the full effect will be visible in 2023 (compared to normalised3 level of 2020)
Savings to be achieved through operational excellence programmes and business process optimisation
Yoram Knoop, CEO of ForFarmers: “Volumes in the third quarter were lower than in the same period last year, when there were no COVID-19 measures and the ‘stoppers arrangement’ for pig farmers in the Netherlands had, for instance, not yet been put into effect. However, compared to the second quarter, when the corona-virus impacted all, volumes increased somewhat. As of March it has certainly not been an easy time for farmers, who saw both their markets decline and prices for their products come under pressure. It remains to be seen how long COVID-19 will still lead to drastic measures. Farmers, consumers and companies remain cautious in their spending. In our recently presented strategy Build to Grow 2025 we indicated that we will definitely continue to invest in innovative concepts and solutions, which will help our customers achieve better returns especially in changing market circumstances. That is why cost efficiency and scale are essential. We are therefore making the next step in enhancing the efficiency of our organisation. Furthermore, I am of course tremendously pleased with the acquisition of De Hoop Mengvoeders, which we announced last week. We are creating a leading player in the Dutch poultry market, focusing on delivering the best feed and the best advice.”
The full press release is attached as PDF (see below).
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 offers complete and innovative feed solutions for livestock farming. With its “For the Future of Farming” mission, ForFarmers is committed to the continuity of farming and further sustainalising the agricultural sector.
ForFarmers is the market leader in Europe with annual sales of 10.1 million tonnes of animal feed. The company is operating in the Netherlands, Germany, Belgium, Poland and the United Kingdom. ForFarmers has approximately 2,600 employees. In 2019, the turnover amounted to approximately € 2.5 billion.
ForFarmers N.V. is listed on Euronext Amsterdam.
ForFarmers N.V., P.O. Box 91, 7240 AB Lochem, T: +31 (0)573 28 88 00, F: +31 (0)573 28 88 99, email@example.com, www.forfarmersgroup.eu
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.
1. Results and developments of the third quarter 2020 are compared to those of the third quarter 2019, unless stated differently
2. 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)
3. Normalised in this context means adjusted for one-off effects of COVID-19