ForFarmers N.V.: ForFarmers third quarter 2020 Trading Update
October 30 2020 - 2:00AM
ForFarmers N.V.: ForFarmers third quarter 2020 Trading Update
Lochem, 30 October
2020
ForFarmers third quarter 2020 Trading
Update
Highlights third quarter 20201:
- Volume Total Feed2: down (-2.8%); smaller decline than in
H1-2020; stable in cluster Germany/Poland, decline in clusters
Netherlands/Belgium and the United Kingdom
- Volume compound feed: down (-3.7%); also smaller decline than
in H1-2020; almost stable volumes in cluster Germany/Poland,
decline in clusters Netherlands/Belgium and the United Kingdom
- Gross profit: down (-6.8%); specifically due to volume decline;
margin pressure in Poland and due to temporary deterioration of
product mix also in the United Kingdom
- Underlying EBITDA: down (-9.4%); lower operating expenses could
not compensate gross profit decline
First phase efficiency plan 2021 &
2022:
- €7 million cost savings, of which the full effect will be
visible in 2023 (compared to normalised3 level of 2020)
- Savings to be achieved through operational excellence
programmes and business process optimisation
Yoram Knoop, CEO of ForFarmers: “Volumes in the
third quarter were lower than in the same period last year, when
there were no COVID-19 measures and the ‘stoppers arrangement’ for
pig farmers in the Netherlands had, for instance, not yet been put
into effect. However, compared to the second quarter, when the
corona-virus impacted all, volumes increased somewhat. As of March
it has certainly not been an easy time for farmers, who saw both
their markets decline and prices for their products come under
pressure. It remains to be seen how long COVID-19 will still lead
to drastic measures. Farmers, consumers and companies remain
cautious in their spending. In our recently presented strategy
Build to Grow 2025 we indicated that we will definitely continue to
invest in innovative concepts and solutions, which will help our
customers achieve better returns especially in changing market
circumstances. That is why cost efficiency and scale are essential.
We are therefore making the next step in enhancing the efficiency
of our organisation. Furthermore, I am of course tremendously
pleased with the acquisition of De Hoop Mengvoeders, which we
announced last week. We are creating a leading player in the Dutch
poultry market, focusing on delivering the best feed and the best
advice.”
The full press release is attached as PDF (see below).
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 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.
1. Results and developments of the
third quarter 2020 are compared to those of the third quarter 2019,
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. Normalised in this
context means adjusted for one-off effects of COVID-19
- 20201030_Press Release_ForFarmers Q3 2020 Trading Update
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