Lochem, 3 November 2023
ForFarmers third quarter 2023 Trading Update
"The results in the third quarter show a recovery of underlying EBITDA. Sales
volumes did decline compared to last year in the third quarter, but were roughly
equal to the second quarter of this year.
The new way of working, in which local organisations are active in the market
with various products and specific advice, is bearing fruit. It underpins our
confidence in the more positive result development for the second half of the
year, as stated in our first half-year press release.
We received permission to sell the compound feed activities in Belgium and
closed this transaction in October. We also hope to be able to close the already
announced acquisition of Piast in Poland soon. This strengthens the basis for
our further development.
Delivering good feed at a competitive price is key to our approach. We have
proven this by being able to offer our customers competitive feed prices. This
has increasingly led to a stronger market position. Together with farmers we are
working at making food production more sustainable. We are doing this very cost-
consciously, especially now that the affordability of food is becoming
increasingly relevant. I notice among our employees that they want and can make
a difference in this. This makes us proud and gives us confidence for the
future", says Pieter Wolleswinkel, CEO of ForFarmers.
Market developments in third quarter 2023
Average prices in Europe for meat and eggs were higher in the third quarter of
2023 than a year before. They were also higher than in the United States,
Brazil, and Canada, thus impacting export from Europe. As of the beginning of
this year milk prices in Europe have started to drop. Dairy farmers received
substantially less for their milk in the third quarter of 2023 than a year
earlier. Prices for raw materials and energy were also much lower than in the
third quarter of 2022. At that time, the war in Ukraine threatened to create a
major shortage of raw materials and energy, causing prices to rise
significantly. Given geopolitical developments concerns remain about the
availability of raw materials and consequently the price development of raw
materials as well as energy and diesel prices remain volatile.
Development consolidated results ForFarmers in the third quarter 2023(1):
? Total volumes (incl. co-products & others): -6.2%
of which compound feed: -5.7%
? Gross profit: +4.3%
? Underlying EBITDA: +33.6%
1. Results and developments of the third quarter 2023 are compared to those of
the third quarter 2022, unless stated differently.
Compared to the third quarter 2022, volumes were lower for all species. Less
feed was sold in the ruminant sector due to the steadily declining milk prices
since the beginning of this year, combined with good weather conditions. At the
same time, the market specific approach led to winning new customers regionally.
In certain regions, some dairy farmers and pig farmers decided to stop farming
following policy decisions. This is one of the reasons why the number of animals
in the pig sector is at an all-time low. Volumes in this sector remained fairly
stable however, when compared to volumes in both the first and the second
quarter of 2023. Slightly less feed was sold in the poultry sector than a year
earlier. This was due to both the transition to Better Life welfare concepts in
the Netherlands and to stopping the feed production in Belgium for this sector.
At the same time, feed volumes in Poland increased.
Net revenues decreased versus a year earlier, driven by lower raw material
prices and lower volumes. Gross profit grew on the back of a better product mix
and the specific local approach. Underlying total operating expenses were
roughly stable. Energy costs were lower than last year when they were extremely
high as a result of the war in Ukraine. Although there were less employees (in
ftes) than last year, personnel costs were higher due to the collective labour
agreement increases at the beginning of 2023. Underlying EBITDA increased by
33.6%.
Interim CFO
The Supervisory Board has appointed Hans Kerkhoven as interim CFO. Mr. Kerkhoven
will start on 27 November coming and will stay until a new statutory CFO has
been appointed by the general shareholders meeting at the latest.
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
E: caroline.vogelzang@forfarmers.eu
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 a prominent player in Europe with annual sales of around 9 million
tonnes of animal feed. The company is active in the Netherlands, Belgium,
Germany, Poland, and the United Kingdom. ForFarmers has roughly 2,400 employees.
In 2022 revenue 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, 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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