Lochem, 11th of March 2021
Results 2020 ForFarmers
Financial highlights 20201 :
· Total Feed volume2:
-3.5% to 9.7 million tonnes;
· Gross profit:
-1.7% to €433.2 million; despite better product mix mainly due to volume decline
· Underlying EBITDA:
+8,7% to €96.2 million; compared to a weak 2019 and especially due to execution of efficiency plans;
· Underlying net profit3:
+10.0% to €46.3 million, excluding a.o. gain on sale of closed mills and goodwill impairment of €34.2 million for activities in Poland due to a.o. Covid-19
· Dividend proposal
regular dividend substantially higher at €0.29 per ordinary share; distribution of 60% of underlying net profit
· Net cash flow from operating activities:
+2.1% to €98.1 million; besides higher EBITDA also driven by lower working capital
1 Results are always compared year-on-year
2 Total Feed covers the entire ForFarmers product portfolio and comprises compound feed, specialties, co-products (including DML products), seeds and other products (such as forage)
3 Underlying net profit: in this instance profit attributable to shareholders of the Company
Yoram Knoop, CEO ForFarmers: “We look back on 2020 as a turbulent year, dominated by the outbreak of Covid-19 and its consequences. Given the circumstances, our results are more than satisfactory. In March last year, we were quick to take measures to combat the spread of the coronavirus and to secure the continuity of production and feed deliveries. Thanks to the tremendous efforts of our employees, we were able to continue to provide a high level of service to our customers. As a result of the closure of the hospitality sector and the out-of-home segment our customers more or less saw a decline in demand for their products followed by a drop in the prices for their products. This also partly put pressure on our volumes and margins. It is hard to predict how long the Covid-19 measures will be sustained. This is one of the reasons, why we have taken a goodwill impairment on our Polish activities. Despite this we remain optimistic about the growth opportunities in the Polish poultry sector once the Covid measures are relaxed. We had already begun implementing efficiency measures in 2019 and have accordingly been able to reduce our cost level even further relatively quickly in 2020. We also managed our working capital well again. All together this has led to a solid contribution to our results.
Looking ahead, I have great confidence in our Build to Grow 2025 strategy despite the ongoing uncertainty. Following its launch in September last year the strategy has got off to a good start, with progress for example in terms of next-level innovation projects and of course the recent acquisitions of poultry feed company De Hoop Mengvoeders in the Netherlands in beginning 2021 and the Mühldorfer Pferdefutter equine feed brand in Germany.”
Read the full press release in the attached pdf.
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 for the editor
Director Investor Relations
T: 0031 6 10 94 91 61
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 making the agricultural sector more sustainable. ForFarmers is the market leader in Europe with annual sales of approximately 10 million tonnes of animal feed. The organisation is operating in the Netherlands, Germany, Belgium, Poland and the United Kingdom. In 2020, ForFarmers has approximately 2,500 employees. In 2020, turnover amounted to approximately €2.4 billion. ForFarmers N.V. is listed on Euronext Amsterdam.
7240 AB Lochem
T: +31 (0)573 28 88 00
F: +31 (0)573 28 88 99
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.