ForFarmers 2022 results

23 February 2023 - 07:02

Financial highlights 20221

  • Total Feed volume2: -6.6% to 9.0 million tonnes; down in every cluster 
    Of which compound feed volume: -7.8% to 6.3 million ton; decline mainly in swine sector; growth in the poultry sector in Germany/Poland 
  • Revenue: +24.1% to €3,315 million; due to higher raw material and energy prices
  • Gross profit: +13.4% to €494.8 million; up relatively less than revenue due to high raw material prices and like-for-like volume decline 
  • Underlying EBITDA: -2.7% to €76.1 million; due to sharp increase in energy costs 
  • Underlying EBIT: -4.4% to €38.9 million
  • Underlying net profit3: +3.4% to €30.0 million
  • Working capital: €38.8 million (2021: €37.4 million)
  • ROACE (based on EBIT)4: 7.8% (2021: 8.4%)
  • Dividend proposal: €0.20 per ordinary share (2021: €0.29, of which €0.19 regular dividend)

1 Results are always compared year-on-year 
2 Total Feed covers the entire product portfolio and consists of compound feed, specialties, co-products (including DML products), seed and other products (such as forage)
3 Net profit: in this context is defined as profit attributable to shareholders in the Company
4 ROACE means underlying EBIT (EBITDA) divided by 12-months average capital employed

Roeland Tjebbes, CFO of ForFarmers: “2022 was a difficult year on several fronts. We are therefore especially proud that our employees have made a huge effort to continue supplying feed to our customers on time and as agreed, even when the availability of raw materials became uncertain as a result of the dreadful war in Ukraine. Our volumes decreased, mainly due to the decline in the pig sector as a result of the contraction in this sector. Nevertheless, we achieved solid underlying EBITDA and underlying net profit that was higher than last year. This was thanks to tightened processes and a strong contribution from the Germany/Poland cluster and despite the sharp rise in raw material and energy prices. In the Netherlands we stood shoulder to shoulder with our farmers to emphasize that we believe that partnering and innovation are more effective solutions to the nitrogen problem than only restructuring. We see that the agricultural sector is facing an important transition. In our recently launched revised strategy 2025, we consequently put even more emphasis both on making our production processes more sustainable and on developing innovative feed concepts that reduce the impact of the sector on climate and nature. We do this through targeted sourcing of raw materials and co-products, proper utilisation of feed and appropriate advice. Our dairy customers in the Netherlands for example have already significantly reduced their greenhouse gas emissions.”

Theo Spierings, CEO of ForFarmers: “I recently joined ForFarmers as CEO. During conversations and meetings over the past two months, I have been struck by the knowledge, experience, dedication and passion that are present in the company. Given the changes facing our sector, this provides a solid foundation. After all, there is currently a lack of a clear vision in the sector with regard to how we can make the sector more sustainable in a fitting and correct manner. That has to change and I want to actively contribute to this with ForFarmers. So that all players in the chain know where they stand and can act accordingly. I am confident that we can do this. We have a good team and our strategy and focus are clear. In addition, we have recently tightened the core values, building on the already existing corporate culture. This culture will help us to adapt the organization needed to properly implement the strategy.
We cannot do without our customers, the members of the cooperative, employees, shareholders, suppliers and other stakeholders. On behalf of myself and my colleagues in the Executive Team I want to thank them, for the trust placed in us in 2022."