ForFarmers N.V. 2018 results
March 13 2019 - 1:59AM
Lochem, 13 March 2019
ForFarmers N.V. 2018
results
Key parameters of results
2018
- Total Feed volume: up 4.9% to 10.0mT, on
acquisitions (2.8%) and organic growth (2.1%);
- Compound feed volume: up 4.2% to 7.0mT, mainly
due to acquisitions;
- Gross profit: up 5.6% to €443.4 million, of which
2.3% from acquisitions (predominantly in H2) and 3.6% like-for-like
growth (stronger in H1);
- Underlying EBITDA: down 1.3% to €100.1 million
(down 1.0% at constant currencies) despite positive contributions
from acquisitions;
- Underlying earnings per share: flat versus prior
year;
- Dividend proposal: €0.283 per ordinary share and
a special dividend of €0.017 per share. Total dividend therefore
€0.30 per ordinary share, equal to 2017;
- Working capital: increase by €7.1 million, due to
acquisitions (+€30.4 million) and like-for-like improvement (-€23.3
million).
2019-2020
- Total cost saving €10 million (in 2021 vs 2018)
over total group excl. Poland, through optimisation factory
footprint and other efficiency projects, including reduction FTE's
(125-150, approx. 5-6%) and incorporating existing UK supply chain
optimisation plans;
- Strong decline 2019 first-half underlying EBITDA
expected compared to first half 2018, due to current
purchasing positions in combination with the focus on sustaining
market share;
- Proposal for share buy-back programme of €30
million (start after Q1/19 trading update, for 18 months).
Yoram Knoop, CEO ForFarmers,
about the 2018 results: "2018 was a year of two sides for
us. In terms of strategy we made progress by, amongst others,
acquiring four companies. Consequently, we are now operational in
five countries and have more sales opportunities in the expanding
poultry sector. Our portfolio segmentation across the various
species is more in balance: volumes are more equally divided over
the ruminant, swine and poultry sector. In 2018 we sold over 10
million tonnes of feed, the first European Total Feed company to do
so. Our Total Feed approach enabled us in attracting new
customers and achieving further growth among existing customers
amid tough market conditions.
Besides these positive developments we were, however, also
confronted in the autumn of 2018 by the effects of the
extraordinary warm and dry summer months, namely higher inbound
logistics costs (low river levels) and more volatility in raw
material prices, which we could not fully pass on to customers
specifically in the Netherlands and Poland and which impacted our
results.
Taking into consideration the 2018 results and
mindful of the current market circumstances, we consider it wise to
reduce the organisation's cost base over the next two years by
implementing extra group-wide efficiency plans. This will involve
reducing the number of mills and our headcount as a result of
further standardisation and optimisation of our processes. At the
same time we will continue to invest in our supply chain and in the
introduction of innovative (digital) concepts for our
customers.
Despite the fact that due to a temporary
unfavourable purchase position we expect our 2019 first half year
results to show a strong decline compared to the 2018 first half
year results, we have confidence in the outlook thereafter."
Read the
full press release in the attached PDF (see
below)
Note to the editor / For additional information:
Caroline Vogelzang, Director Investor Relations
and Communications
T: +31 6 10 94 91 61
E: caroline.vogelzang@forfarmers.eu
Company profile
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 approximately 10 million tonnes of animal feed. The
organisation is operating in the Netherlands, Belgium, Germany,
Poland and the United Kingdom. In 2018, ForFarmers has
approximately 2,700 employees. In 2018, the turnover amounted to
over € 2.4 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
forwardlooking 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.
20190313_Press Release_ForFarmers
2018 Annual Results
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: ForFarmers N.V. via Globenewswire
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