ForFarmers N.V.: ForFarmers 2021 first-half results
August 13 2021 - 12:55AM
ForFarmers N.V.: ForFarmers 2021 first-half results
Lochem, 13 August 2021
ForFarmers 2021
first-half results
Financial highlights for first-half of
20211:
• Total Feed Volume2:
+1.9% to 4.9 million
tonnes; acquisition effect outweighs slight like-for-like (l-f-l)
decline of which compound feed:
+2.2% to 3.5 million tonnes; growth
(l-f-l) in cluster Germany/Poland and acquisition effect
compensates for decline (l-f-l) in cluster Netherlands/Belgium and
United Kingdom• Gross profit:
-0.9% to €217.5 million as a result of
increased competition due to Covid and volume decline (l-f-l)•
Underlying EBITDA:
-15.4% to €40.8 million despite
contribution from acquisitions due to lower gross profit and higher
energy and fuel costs; no currency translation effect• Underlying
net profit3:
-26.6% to €17.9 million• Working capital:
(year-on-year) improvement by €23.2
million to €53.3 million• Cash flow from operating activities:
-35.9% to €9.1 million; driven by lower EBITDA
Commenting on the 2021 first-half results,
ForFarmers CEO
Yoram Knoop
said: “The results in the first-half of 2021 were
disappointing. There was an abnormally fierce battle for market
share between feed producers, resulting in margin pressure. This
was mainly attributable to the generally dire liquidity situation
of our customers. The prolonged Covid measures delayed price
recovery for their products, whilst at the same time feed prices
rose as a result of the sharp increase in raw material
prices. In addition, we lost around €4 million in our
underlying EBITDA due to the incident in Germany where we had
priced a number of contracts wrongly, as reported in our Q1 trading
update. Our volumes increased as a result of the acquisition of De
Hoop Mengvoeders and Mühldorfer Pferdefutter, both at the beginning
of this year. Like-for-like, we saw volumes decline just a little.
In the first half of this year we realised savings, as part of the
efficiency programme to save a total of €7 million during this and
the coming year. Mainly due to margin pressure and the incident in
Germany we realised a lower underlying EBITDA than a year earlier.
How long the current margin pressure will continue, largely depends
on the diligence of the sector in fully passing on the rapidly
increased costs of mainly raw materials and energy, to customers.
Against this backdrop, we expect the underlying EBITDA in the
second half-year 2021 (including acquisitions) to be more or less
in line with the underlying EBITDA in 2H 2020. The integration of
the two acquisitions is progressing according to plan and the
results achieved so far have been better than expected. Within
ForFarmers we focus foremost on increasing our market share by
delivering good products and advice for a fair price, enabling both
our customers and ourselves to increase returns. We aim to do this
more efficiently all the time. We are due to launch innovations,
which will enhance our customer proposition. Our sector has
great innovative strength and at present this is crucial in the
Netherlands in particular, given that it provides the solution to
the nitrogen crisis. By making it possible for the sector to
innovate in terms of feed concepts and barn facilities, it is no
longer necessary to focus on reducing livestock numbers in order to
restore nature and kick-start the construction sector. It is by
preserving – and not destroying – our world-leading sector, in
terms of high-quality production with an ever lower environmental
footprint, that we can contribute to greater global
sustainability. Finally, I am pleased that the Supervisory
Board nominated our colleague Pieter Wolleswinkel as a member of
the Executive Board this morning.”
This press release contains information that qualifies as inside
information in the sense of Article 7 paragraph 1 of the EU Market
Abuse Regulation.
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 +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.
1 Results are always compared year-on-year2 Total Feed : the
entire product portfolio, comprising compound feed, specialties,
co-products (including DML products), seeds and other products
(such as forage)3 Underlying net profit: in this instance profit
attributable to shareholders of the Company
- 20210813 Press Release ForFarmers 2021 Half-year results
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