ForFarmers N.V.: ForFarmers 2022 first-half results
August 11 2022 - 1:00AM
ForFarmers N.V.: ForFarmers 2022 first-half results
Lochem, 11 August 2022
ForFarmers 2022 first-half results
Increase underlying EBITDA due to positive results in countries
outside of the Netherlands
Financial highlights for first-half
of 20221:
- Total Feed2 volume:
-7.4% to 4.5 million
tonnes; due to like-for-like decline in all clusters of which
compound feed:
-7.9% to 3.2 million tonnes; decline in all
clusters
- Gross profit:
+18.3% to €257.3 million; higher raw material and
energy prices largely passed on in Q2; 1H 2021 depressed by German
incident
- Underlying EBITDA:
+5.6% to €43.1 million;
higher gross profit and efficiency measures
- Underlying net
profit3: -4.5%
to €17.1 million; mainly due to increased interest expenses and
higher effective tax rate
- Working capital:
increase of €21.7 million (year-on-year) to €75.0 million due
to sharp increase in raw material prices
- Results are always compared year-on-year
- Total Feed: the entire ForFarmers product portfolio consisting
of compound feed, specialties, co-products (including DML
products), seed and other products (such as forage)
- Net profit: in this context is defined as profit attributable
to shareholders of the Company
Commenting on the 2022 first-half results ForFarmers CEO
Chris Deen said:
“While still in my induction period at ForFarmers it is my
privilege to present these better-than-originally-expected
first-half results, mainly due to the second quarter results. This
is a great achievement by the team amid challenging market
conditions due to the war in Ukraine and the consequential further
increase in raw material and energy prices. Our total volumes fell,
mainly due to a decline in the pig sector in Netherlands/Belgium
and the United Kingdom, whereas poultry volumes in Poland grew. The
cost increases could only be passed on in the chain in the course
of the second quarter. This explains the result improvement versus
the first quarter. Finally, the absolute rise in gross profit
in the first half-year was higher than the absolute increase in
operating expenses. Underlying EBITDA consequently was higher than
originally expected
In the Netherlands, the approach taken in handling the nitrogen
crisis is leading to a polarised public debate as well as
widespread unrest among livestock farmers. We call on politicians
to be more open to a meeting in which everything is open for
discussion. Cooperation and innovation are more effective and
better than just restructuring. Moreover, prospects are
prerequisites for sustainable business practices, in any sector.
The agricultural sector has always proven itself in terms of
innovation and solution-based thinking. Our cooperation with
customers and other partners in the chain is invaluable. In all the
conversations I have held in the past few months I have experienced
the huge knowledge and pride in the sector in general and this
great company in particular.
The tightening of the strategy in light of all the
aforementioned developments is in full swing and underpins our
confidence in the future. We will make further announcements about
this in the fourth quarter.
We are also pleased about the recently announced joint venture
between ForFarmers UK and the poultry feed company 2Agriculture in
the United Kingdom. The proposed joint venture is subject to
regulatory approval in the United Kingdom.
Looking ahead, there are still many uncertainties at present,
especially due to the war in Ukraine. In addition, we need to
consider a possible new Covid wave and the low water levels in the
rivers in the Netherlands. In view of this we consider it unwise to
provide any guidance about the expected development of the results
in the second half of 2022 or a possible resumption of the share
buy-back programme.”
Read the full press release on www.forfarmersgroup.eu.
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 61 E: caroline.vogelzang@forfarmers.eu
About ForFarmers N.V. ForFarmers N.V. is an
international organisation that provides complete innovative feed
solutions to the livestock farming industry. 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 around 10 million tonnes of animal
feed. The company is active in the Netherlands, Belgium, Germany,
Poland and the United Kingdom. ForFarmers has approximately 2,500
employees. In 2021 revenue amounted to approximately €2.7 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
STATEMENTS This 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.
- 220811_Press Release ForFarmers first-half 2022 results
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