ForFarmers N.V.: ForFarmers 2020 first-half results
August 13 2020 - 12:55AM
ForFarmers N.V.: ForFarmers 2020 first-half results
Lochem, 13 August 2020
ForFarmers 2020 first-half results
Solid recovery, supported by efficiency measures - despite
challenging markets. Highlights for first-half of 20201:
- Total Feed2 volume: -5.6% to 4.8 million tonnes; of which
compound feed: -4.9% to 3.4 million tonnes;
- Gross profit: +2.5% to €219.5 million; compared to depressed H1
2019 (purchasing position) and due to improved product mix with
focus on specialties;
- Underlying EBITDA3 : +34.6% to €48.2 million; rise in gross
profit and cost savings due to efficiency measures
taken;
- Underlying profit: +80.7% to €21.5 million;
- Working capital: (year-on-year) improved by €14.9 million to
€76.5 million;
- Net cash flow from operating activities: almost tripled to
€14.2 million.
[1] Results for the first half of 2020 are compared to the
results for the same period of 2019[2] ‘Total Feed’ covers the
entire ForFarmers product portfolio and consists of compound feed,
specialties, co-products (including DML products), seeds and other
products (such as forage)[3] Operating profit excluding
depreciation, amortisation and incidental items
Outlook for 2020Despite expectations of a protracted
impact from COVID-19 ForFarmers forecasts that underlying EBITDA
and net profit in 2020 will comfortably exceed the weak result in
2019, partly as a result of the efficiency measures taken.
Commenting on the 2020 first-half results ForFarmers CEO
Yoram Knoop said: “Both for many of our customers and for us,
the first half of 2020 was dominated by the global outbreak of the
coronavirus and the nitrogen debate in the Netherlands. We are
proud that our employees have managed to continue producing and
transporting feed without any complications for our customers,
despite the COVID-19 measures imposed. The closure of the
out-of-home sector impacted on our customers’ sales, in particular
in the second quarter. This was reflected in our volume
development, especially in the United Kingdom and Poland.
In addition our customers are facing increased pressure to
reduce the environmental impact of their business, with this being
translated into various measures in the countries where we operate.
Particularly in the Netherlands, where the agricultural sector is a
global leader in terms of developing sustainable concepts, the
discussion surrounding future government measures to reduce
nitrogen emissions, is causing turmoil and uncertainty in the
sector. In this light there is a growing need for data-backed
advice; this is at the heart of our Total Feed approach.
The COVID situation has forced us to accelerate the
implementation of our efficiency plans, meaning that our target of
€10 million in cost savings has almost been reached already. Also
as a result of this, we achieved a strong increase in underlying
EBITDA despite the difficult market conditions, albeit in
comparison to a weaker first half in 2019. This gives us confidence
for the future. In addition we are working on next steps to make
the organisation more efficient. We will announce the relating
plans later this year.
There was a further increase in safety awareness at work,
resulting in a 21% reduction in lost time incidents (LTIs). The
knowledge, experience and dedication of staff is crucial to the
successful rollout of any strategy. On 15 September we will publish
our strategy for 2020-2025. With our employees, focus and Total
Feed approach, we meet the key requirements to be successful in the
challenging markets in which we operate,” said ForFarmers CEO Yoram
Knoop.
Please find attached the pdf for the full press release or read
it on our website.
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
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 to further
increasing the sustainability of the agricultural sector.
ForFarmers is the market leader in Europe with annual sales of 10.1
million tonnes of animal feed. The organisation operates in the
Netherlands, Germany, Belgium, Poland and the United Kingdom.
ForFarmers has approximately 2,600 employees. In 2019 revenue
amounted to approximately €2.5 billion. ForFarmers N.V. is listed
on Euronext Amsterdam.
ForFarmers will publish its Third Quarter 2020 Trading Update on
30 October 2020.
ForFarmers N.V., Postbus 91, 7240 AB Lochem, T: +31 (0)573 28 88
00, F: +31 (0)573 28 88 99 info@forfarmers.eu/en/,
www.forfarmersgroup.eu/en/
FORWARD-LOOKING STATEMENTS This press release
contains forward-looking statements, for example relating to
ForFarmers’ legal obligations in terms of capital and liquidity
positions in certain specified scenarios. In addition
forward-looking statements may, without limitation, include phrases
such as “intends to”, "expects”, “takes into account”, "is aimed
at”, ''plans to”, "estimates" and words of 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 lead to material differences
between the actual results and performance and the expected future
results or performance as implicitly or explicitly contained in the
forward-looking statements. Factors that may result in, or
contribute to, deviations from the current expectations 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 relate solely to I statements as of the date of
this document and ForFarmers accepts no obligation or
responsibility whatsoever to update the forward-looking statements
contained in this release, regardless of whether these pertain to
new information, future events or otherwise, unless ForFarmers is
legally obliged to do so.
- 200813_Press Release_Results ForFarmers first half-year
2020
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