ForFarmers third quarter 2019 Trading Update

31 October 2019 - 06:59

Highlights third quarter 2019(1):

  • Volume Total Feed(2): small decline (-0.6%); the contribution of the acquisitions could not fully offset the like-for-like volume decline.
  • Volume compound feed: nearly stable (-0.4%); growth in Germany/Poland nearly compensates the decline in the Netherlands/Belgium and the United Kingdom.
  • Gross profit: nearly stable (0.4%); the contribution of the acquisitions was about equal to the like-for-like decline. Substantial improvement compared to the first half-year of 2019.
  • Underlying EBITDA(3): increase of 6.9% (including a positive IFRS 16 effect of 6.6%).


  • As announced earlier, underlying EBITDA, underlying EBIT and underlying net profit for the full year 2019 will be lower than in 2018 because the decline of the results in the first-half of 2019 (compared to the first-half of 2018) can not be compensated.
  • Political discussion in the Netherlands about impact agricultural sector on the environment (i.e. nitrogen emissions) can possibly lead to reduction of animals herds.

Yoram Knoop, CEO of ForFarmers, states: “The results in the third quarter indicate, among other things, that the effect of the unfavourable purchasing position, which we had in the first half-year, is behind us. We have realised substantial growth in Poland with which we have compensated the effects of the challenging market circumstances in the other countries. We consider the fast growing agricultural market in Poland as an important pillar of growth for the future and are well positioned there with our stake in Tasomix.
The discussion in the Netherlands about which measures should be taken to reduce the nitrogen emissions has led to great unrest among farmers. In this context it is understandable that they remain reluctant to increase their production. It is crucial that the nitrogen discussion is held based on facts and is not only focused on reduction of herd size. We are convinced that much can be achieved in terms of reduction of nitrogen emissions through innovative feed concepts, management measures, better barn designs and effective use of manure. In addition, we are contributing to the realisation of a consistent, long-term vision of the Dutch government vis-à-vis the agricultural sector, in which investments to make the sector more sustainable are being supported.
We made good progress with the implementation of the group-wide efficiency plans, which were announced earlier this year, particularly in the United Kingdom and the Netherlands. This is starting to lead to cost savings. Going forward we will continue to focus on making our organisation more efficient and flexible.”

(1) Results and developments of the third quarter 2019 are compared to those of the third quarter 2018, unless stated differently.
(2) 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) Underlying EBITDA means EBITDA excluding incidental items.