ForFarmers N.V.: ForFarmers first quarter 2020 Trading Update
May 01 2020 - 12:53AM
ForFarmers N.V.: ForFarmers first quarter 2020 Trading Update
Lochem, 1 May 2020
ForFarmers first quarter 2020 Trading
Update
Highlights first quarter 20201:• Volume Total
Feed2: down (-5.3%); like-for-like decline in all clusters; •
Volume compound feed: down (-3.8%); like-for-like decline in
clusters Netherlands/Belgium and the United Kingdom, virtually
stable volume in cluster Germany/Poland; • Gross profit: up (4.4%);
Q1 2019 included an unfavourable purchasing position; • Underlying
EBITDA3: up (44.1%); compared to a weaker first quarter in 2019;
increase due to higher gross profit and lower operating costs as a
result of realised efficiency measures among others.
Yoram Knoop, CEO of ForFarmers, states: “Since mid-March we are
being confronted by a new reality. We immediately took measures to
safeguard the health of our employees and to enable the
continuation of the production and distribution of feed to our
customers. In addition, our sector has been identified a vital
business sector in order not to endanger the food supply. Up to now
we have seen no material impact of the COVID-19 measures on our
core processes. In the first quarter of 2020 a substantial increase
in underlying EBITDA was realised. This, despite the fact that in
some countries volumes declined again due to the pressure on the
agricultural sector to decrease the environmental impact. There was
no impact of an unfavourable purchasing position in the first
quarter of 2020. In addition, despite the volume decrease, there
was a better product mix including more specialties and fewer costs
due to implemented cost saving measures. Looking forward we see
changing market circumstances due to COVID-19, with challenges
arising for our customers, the ultimate impact of which on
ForFarmers is still uncertain. We expect to realise a better
underlying EBITDA in the first half-year 2020 compared to the first
half of 2019, but in light of the increased uncertainties due to
COVID-19, we refrain from expressing any further expectations.We
continue to focus on the health of our employees and on supporting
our more than 26,000 customers through the delivery of quality feed
and advice. Above all, I am especially proud of the effort and
dedication of our employees towards our customers. For this I would
like to thank them personally and on behalf of all the members of
the Executive Committee”.
1. Results and developments of the third quarter 2019 are
compared to those of the third quarter 2018, unless stated
differently2. 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. Underlying EBITDA means EBITDA
excluding incidental items
This press release contains information that qualifies as inside
information in the sense of Article 7 paragraph 1 of the EU Market
Abuse Regulation.
Read the full press release in the PDF on the website
Note to the editor / For additional
information:Caroline Vogelzang, Director Investor
Relations and CommunicationsT +31 (0)573 288 194 • M +31 (0)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
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, NL-7240 AB Lochem, T: +31 (0)573
28 88 00, F: +31 (0)573 28 88 99, info@forfarmers.eu,
www.forfarmersgroup.eu/en
FORWARD-LOOKING STATEMENTSThis document
contains forward-looking statements that can also relate to
ForFarmers’ legally required capital and liquidity positions in
certain specific scenarios. Forward-looking statements can include
but are not limited to statements that include words such as,
“intended”, “expected”, “based on”, “focused on”, “plans”,
“estimate” and words with similar meanings. These statements relate
to or can have an effect on circumstances that will occur in the
future, such as ForFarmers’ future financial results, business
plans and current strategies. Forward-looking statements are
subject to various risks and uncertainties that could cause actual
results and performance to differ materially from the expected
future results or performances that are implicitly or explicitly
included in forward-looking statements. Factors that can lead to or
contribute to differences in current expectations include, but are
not limited to: developments in legislation, technology, taxes,
laws and regulations, fluctuations in share prices, legal
procedures, investigations by regulators, competitive relationships
and general economic conditions. These and other factors, risks and
uncertainties that may affect any forward-looking statement or the
actual results of ForFarmers are discussed in the latest published
annual report. The forward-looking statements in this document only
concern statements from the date of this document, ForFarmers
accepts no obligation or responsibility whatsoever to update
forward-looking statements contained in this message, irrespective
of whether they reflect new information, future events or
otherwise, subject to ForFarmers’ legal obligation to do so.
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