ForFarmers Q3 2022 Trading Update
November 01 2022 - 2:00AM
ForFarmers Q3 2022 Trading Update
Lochem, 1 November 2022
ForFarmers Q3 2022 Trading Update Highlights for third
quarter of 20221:
- Total Feed volume2: down by 7.2%; decline mainly in the swine
and layer sectors of which compound feed: down by 9.1%
- Gross profit: up by 8.3%
- Underlying EBITDA: down by 17.3%; higher expenses could not be
passed on fully in the supply chain
1 Results and developments of the third quarter 2022 are
compared to the third quarter 2021, unless otherwise stated2 Total
Feed comprises the entire product portfolio of ForFarmers and
consists of compound feed, specialties, co-products (such as
residual flows from the food industry, referred to by ForFarmers as
DML products), seeds and other products (such as forage).
ForFarmers CFO Roeland Tjebbes said: "Volatile
markets due to the war in Ukraine and the exceptionally long and
hot summer determined results in the third quarter. We could not
fully pass on the higher energy costs nor the inbound freight costs
due to the low water levels in the rivers. Particularly pig farmers
and layer farmers were affected by the (financial) consequences of
outbreaks of animal diseases. We consequently saw our volumes in
these sectors drop. In Poland, however, we again sold more feed to
broiler farmers and our volumes were also up in the ruminant sector
in the Netherlands and the United Kingdom. Raw material prices were
somewhat lower than in the second quarter. This was a positive
development for all farmers, but not yet sufficient for pig
farmers. In general, they continued to produce at a loss. The
increase of gross profit was not enough to cover the higher
operating expenses, which included energy costs which were roughly
twice as high as a year before. This consequently resulted in our
consolidated underlying EBITDA being a few million lower than a
year earlier. On a quarterly basis this translates into a
relatively high percentage. Excluding the higher energy costs,
underlying EBITDA in the third quarter of 2022 would have been
roughly the same as in the third quarter of 2021. Our markets are
and will likely continue to be volatile. In such challenging
markets we are well aware that we can rely on loyal customers and
dedicated employees. They make the difference, and we are grateful
for that. We remain committed to our customers and other
stakeholders and will provide more insight into how we intend to
continue to do so in the coming years on 17 November. Moreover, we
hope to soon be able to provide more clarity on the planned joint
venture with 2Agriculture in the United Kingdom, with which we will
further strengthen our position in the poultry sector.”
Read the full press release on our website or download the
file at the bottom of this message.
This press release contains information that qualifies as inside
information within the meaning of Article 7 paragraph 1 of the EU
Market Abuse Regulation. Note to the editor / For further
information:Caroline Vogelzang, Director of Investor
RelationsM +31 (0)6 10 94 91 61 • E:
caroline.vogelzang@forfarmers.eu
About ForFarmersForFarmers 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 underpins its
commitment both 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 and is active in the
Netherlands, Belgium, Germany, Poland and the United Kingdom.
ForFarmers has around 2,500 employees and in 2021 generated revenue
of approximately €2.7 billion. ForFarmers N.V. is listed on
Euronext Amsterdam.
ForFarmers N.V. P.O. Box 91 7240 AB Lochem The Netherlands T:
+31 (0)573 28 88 00 F: +31 (0)573 28 88 99info@forfarmers.eu,
www.forfarmersgroup.eu
FORWARD-LOOKING STATEMENTSThis 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, contain phrases
such as “intends to”, "expects”, “takes into account”, "is aimed
at”, ''plans to”, "estimates" and/or 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 current expectations
include, but are not limited to developments in legislation,
technology, taxation, jurisprudence and regulations, share price
fluctuations, legal proceedings, 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 most recently published annual report. The
forward-looking statements in this press release relate solely to
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.
- 20221101_Press release _ForFarmers Q3 2022 Trading Update
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