ForFarmers 2023 results

22 February 2024 - 07:04

ForFarmers 2023 results - Implementation of ‘Local in the lead’ bears fruit 

Pieter Wolleswinkel, CEO of ForFarmers:
“2023 was a year of transition for ForFarmers in which we achieved an improvement of our results in the second half. The implementation of our strategy, of being even closer to our farmers with a local market approach, is bearing fruit. We are in a strong position to keep on delivering on our promise to our customers: to provide high-quality feed at a competitive price. The acquisition of Piast in growth market Poland is also an important step in the implementation of our strategy. Not only will this enable us to produce more efficiently but the geographical spread also provides good commercial opportunities. Furthermore in October 2023 we sold our Belgian compound feed activities in view of their limited market perspective for ForFarmers.  
 
It is our conviction that livestock farming plays an essential role in safeguarding affordable and sustainable food. We will therefore continue to invest in sustainable solutions such as innovative feed concepts, for example to increase the proportion of co-products in our feed solutions. These are challenging times for many farmers. We look forward to continuing to work on solutions that contribute towards a profitable futureproof farming business, thus putting our mission For the Future of Farming into practice. For ForFarmers, 2023 was a year of both challenges and progress, and the latter fills me with confidence for the future. I am convinced that with our people and our strategy we are on the right track.” 

Highlights of 2023

  • Implementation of ’Local in the lead’ is bearing fruit; the second half of 2023 showed a recovery of the market position and a clear improvement in underlying profitability
  • Total volume was 8.4 million tonnes in 2023 (2022: 9.0 million tonnes); adjusted for Belgian volumes, compound feed volume in the second half 2023 was in line with the first half
  • Gross profit declined 3.5% as a result of the decline in volume and volatile raw material and fertilizer prices. In H2 2023 gross profit rose 2.1% compared to a year earlier
  • Underlying EBITDA came in at €70.0 million and underlying EBIT was €32.7 million; this was lower compared to 2022 but, as expected, H2 showed a strong improvement compared to both H1 2023 and H2 2022
  • Underlying net profit was €22.7 million. There was a reported net loss of €1.0 million, mainly as a result of one-off non-cash items
  • Strongly improved net cash flow from operating activities as a result of favourable developments in working capital and raw material prices
  • Successful implementation of organisational changes aimed at more local responsibility and cost-saving measures
  • Following the acquisition of Piast in Poland and Thunderbrook (horse feed activities) in the United Kingdom in January 2024 and the sale of the compound feed activities in Belgium, ForFarmers is more strongly positioned for growth
  • Dividend proposal of €0.15 per ordinary share (2022: €0.20)