ForFarmers announces strategy 2025
September 15 2020 - 2:45AM
ForFarmers announces strategy 2025
Lochem, 15 September 2020 ForFarmers announces strategy
2025
Resilient in challenging home countries, expansion to new markets
Today ForFarmers N.V. (ForFarmers/the Company) introduces its
strategy Build to Grow 2025 to analysts and
investors during a Capital Markets Day. In the coming five years
the Company will focus on further strengthening its market
positions in existing home countries, by delivering innovative feed
concepts that help farmers improve their returns on-farm in a
sustainable way. To this end for instance, digitalisation of
business processes will be further enhanced, both on-farm and
internally at ForFarmers. In parallel, ForFarmers aims to grow by
means of acquisitions in existing markets and in new growth
markets, potentially outside of Europe. The objective is to be
operational by 2025 in 7 countries, and have a more balanced
portfolio between developing and mature markets. Solid
financial ambitions with attractive dividend policy
ForFarmers has determined the following financial ambitions for
2025, which are linked to the strategy:
- By 2025 an underlying EBITDA between €125 million and €135
million1, as a result of both like-for-like growth and acquisitions
(2019: €88.5 million and H1 2020: €48.2 million);
- Annual growth (like-for-like, i.e. excluding acquisitions) of
underlying EBITDA by 0%-3%1 (as of 2020) in the challenging home
countries;
- Operational costs at least €10 million lower in 2025 compared
to 2020;
- A dividend policy, with a distribution of 40%-60% (was 40%-50%)
of underlying net profit (after tax).
1 At constant currencies
Build to Grow 2025: customer focused, innovative,
efficient and sustainable As the leading feed company in
Europe, ForFarmers is an important link in the value chain that
supplies food, including animal protein, to the growing global
population. However, with the exception of Poland, the agricultural
sector is experiencing growing pressure in the European home
markets of ForFarmers. For example farmers are increasingly faced
with extensive environmental measures to reduce phosphate and
ammonia emissions by animals. Growth expectations for the
agricultural sector in Northwest-Europe are consequentially very
limited. On a global scale the feed market continues to grow and
remain very large and offers opportunities for strong and
innovative players such as ForFarmers, both for organic growth and
for further consolidation. ForFarmers is already the leading feed
company in Europe and aims to retain and enhance this position.
With the strategy Build to Grow 2025, ForFarmers
emphasizes its resilience in existing home countries and its
ambition to expand to two carefully selected new growth markets,
potentially outside of Europe. By being customer centric at the
lowest possible cost ForFarmers believes it will make the
difference in its home markets. The key to this is its Total Feed
approach, aimed at helping farmers to achieve an optimal return
on-farm, particularly in times of increasing environmental
measures. This approach combines feed, with customized advice and
is supported by monitoring tools. Innovative feed concepts and
data-analysis are becoming more and more important, in making the
agricultural sector more sustainable. ForFarmers is committing
significant effort and resource to several programmes aimed
specifically towards this. These include using more co-products
from the food industry in animal feed for instance and improving
the feed conversion (less feed, more output). Accordingly,
ForFarmers is launching a tightened and ambitious sustainability
policy, as part of the strategy Build to Grow 2025, with the
objective to reduce its carbon footprint of the production of feed
and animal protein. This press release contains information that
qualifies as inside information in the sense of Article 7 paragraph
1 of the EU Market Abuse Regulation. Capital Markets
Day Today ForFarmers presents the various elements of the
strategy Build to Grow 2025 and the relating programmes during its
Capital Markets Day. The presentations can be followed via a
webinar (09.00 – 12.30 hours CET). After the event the
webinar will be posted on the corporate website
(www.forfarmersgroup.eu).
Note to the editor / For additional
information:
Caroline Vogelzang, Director Investor Relations T: 0031 573 288
000 M: 0031 6 10 94 91 61E:
caroline.vogelzang@forfarmers.eu
About ForFarmers N.V. 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, 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 STATEMENTSThis 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.
Forfarmers NV (EU:FFARM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Forfarmers NV (EU:FFARM)
Historical Stock Chart
From Jul 2023 to Jul 2024