Lochem, 10 August 2023
ForFarmers 2023 first-half results
Results highlight importance of revised strategy and cost savings
Commenting on the 2023 first-half results ForFarmers CEO Pieter Wolleswinkel
said:
"The sharp decline in the result in the first six months of 2023 underlines the
importance of the revised strategy, which is decisively being implemented
during this transitional year. Price competition increased amid volatile market
conditions, putting further pressure on our volumes and thus also on our gross
profit. The answer to this challenge lies in implementing the strategy, in which
local responsibility with commercial flexibility and a differentiated approach
is key. The reorganisation that this requires is being implemented this year.
The outcome is a given: fewer management positions and short lines to the
customer. Feed quality is paramount in our offering to customers. We use our
knowledge of nutrition and are enforcing cost saving programmes to offer
competitive selling prices in our local markets. This approach must lead to
improved volume and thus gross profit development. We are convinced that in our
markets we can contribute to a strong agricultural chain in which sustainability
and returns go hand in hand. We are making progress in ESG; we are increasingly
working with farmers and chain partners to further reduce our carbon footprint
by, for example, using more residual flows and by providing specific advice.
Geographically, choices have been made.We expect to finalise the announced sale
of the activities in Belgium by the end of the third quarter. An associated
impairment charge has already been included in these results. The choices we
have made in the Germany/Poland cluster are encouraging, as evidenced by the
results, as is our choice for a differentiated approach to the ruminant sector
in the United Kingdom. This underpins our confidence that the second half-year
will be better than the first half-year, barring unforeseen circumstances. With
our strategy and committed employees, we can make a constructive contribution to
a sound, sustainable future for our sector and our stakeholders. The recently
announced acquisition of Piast in Poland, which expands our position in this
growth market, is an example to this end."
Consolidated key
figures

                         For the six months
                              ended 30 June

In millions of
euro (unless
indicated
otherwise)
--------------------------------------------------------------------------------

                                             Total change
                        2023           2022          in %                  Note

---------------------------------------------------------+---------------------+
Total volume |Relatively smaller | (incl. co-products |decline in co- | & others; x 1.000 |products & other than| tonnes) |in compound feed | 4,310 4,526 -4.8%|volumes | ---------------------------------------------------------+---------------------+
|Decline in swine | |sector (price | |competition); decline| Of which compound |in broilers (welfare | feed (x 1.000 |concepts in NL and | tonnes) |avian flu in UK, but| |growth in PL); | |increase in ruminant | |sector (success in | 2,995 3,187 -6.0%|UK) | ---------------------------------------------------------+---------------------+
Revenue |Due to the use of | 1,606.5 1,597.3 0.6%|differentiation | ---------------------------------------------------------+---------------------+
|Due to price | |competition resulting| |in lower volumes, | Gross profit |price volatility in | |raw materials and | |fertilizer (mainly in| 234.8 257.3 -8.7%|NL/BE) | ---------------------------------------------------------+---------------------+
|Wage indexation | |higher than effect | |decline FTEs, lower | |production costs | Operating expenses |(drop in volume and | |lower energy prices),| |release from the | |provision for bad | (241.3) (238.3) 1.3%|debts | ---------------------------------------------------------+---------------------+
|Excl. incidental | |losses such as | Underlying |impairment of Belgian| operating expenses |activities and | |restructuring costs | |(factory closures, | (226.7) (233.4) -2.9%|reorganisation) | ---------------------------------------------------------+---------------------+
|Including EUR6.1 |
|million in | EBITDA |incidental losses | |(see note 12, pages | 20.4 42.3 -51.8%|21, 22) | ---------------------------------------------------------+---------------------+
|Decline in gross | Underlying (1) |profit greater than | EBITDA |reduction in | |underlying business | 26.5 43.1 -38.5%|expenses | ---------------------------------------------------------+---------------------+
|Including EUR14.6 |
|million in incidental| EBIT |losses, of which | |EUR10.5 million for |
|transition year (see | (6.0) 19.1 -131.4%|note 12) | ---------------------------------------------------------+---------------------+
|Relatively smaller | |decline in co- | Underlying EBIT |products & other than| |in compound feed | 8.6 24.1 -64.3%|volumes | ---------------------------------------------------------+---------------------+
Profit | | attributable to | | shareholders of | | the Company (14.4) 11.1 -229.7%| | ---------------------------------------------------------+---------------------+
Underlying profit 4.4 17.1 -74.3%| | ---------------------------------------------------------+---------------------+
Net cash from | | operating | | activities 20.9 (8.8) 337.5%| | ---------------------------------------------------------+---------------------+
Underlying EBITDA | | / Gross profit 11.3% 16.8% -32.7%| | ---------------------------------------------------------+---------------------+
ROACE (2) on | | underlying EBIT 4.8% 8.5% | | ---------------------------------------------------------+---------------------+
ROACE (2) on | | underlying EBITDA 12.2% 16.2% | | ---------------------------------------------------------+---------------------+
Underlying | | earnings per share | | (x EUR1) 0.05 0.19 -73.7%| |
---------------------------------------------------------+---------------------+
(1) Underlying means excluding non-recurring items (see note 12 of the interim
report regarding the Alternative Performance Measures (APMs))
(2) ROACE is defined as underlying EBITDA/EBIT divided by 12-month average
capital employed
General note: percentages are presented based on rounded amounts in millions of
euros. This may result in slight differences when numbers are added.
Read the full press release on our website
(https://www.forfarmersgroup.eu/en/media/news/forfarmers-2023-first-half-
results.aspx) or download the pdf at the bottom of this post.
Note to the editor / For additional information:
Caroline Vogelzang, Director Investor Relations
T: 0031 573 288 194 M: 0031 6 10 94 91 61
E: caroline.vogelzang@forfarmers.eu (mailto:caroline.vogelzang@forfarmers.eu)
About ForFarmers N.V.
ForFarmers N.V. is an international organisation that provides complete and
innovative feed solutions to the livestock farming industry. With its 'For the
Future of Farming' mission, ForFarmers underpins its commitment both to the
continuity of farming and to further increasing the sustainability of the
agricultural sector.
ForFarmers is a prominent player in Europe with annual sales of approximately
9 million tons of animal feed and is active in the Netherlands, Belgium,
Germany, Poland and the United Kingdom. ForFarmers has around 2,500 employees.
In 2022, the turnover amounted to approximately EUR3.3 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, info@forfarmers.eu (mailto:info@forfarmers.eu),
www.forfarmersgroup.eu (http://www.forfarmersgroup.eu/)
FORWARD-LOOKING STATEMENTS
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.
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