ForFarmers first quarter 2021 Trading Update

6 May 2021 - 07:00

Highlights first quarter 20211:

  • Volume Total Feed2: up (1.8%); due to like-for-like volume growth in clusters Germany/Poland and the United Kingdom and due to the acquisition of De Hoop Mengvoeders in the Netherlands
  • Volume compound feed: up (1.0%); the like-for-like volume growth in cluster Germany/Poland and the acquisition of De Hoop Mengvoeders was larger than the like-for-like volume decline in clusters Netherlands/Belgium and the United Kingdom
  • Gross profit: down (-2.8%); the growth in cluster Netherlands/Belgium could not compensate the unexpected decline in cluster Germany/Poland in combination with the decline in the United Kingdom
  • Underlying EBITDA: down (-12.8%); due to gross profit decline and despite like-for-like cost savings.

1.    Results and developments of the first quarter 2021 are compared to those of the first quarter 2020, 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)

Yoram Knoop, CEO of ForFarmers: “The first quarter of 2021 showed a mixed picture compared to the same quarter last year, when there was no Covid-19 yet. We are grateful for the strong commitment of our employees during the still ongoing difficult circumstances because of Covid-19. Our Total Feed volumes rose due to the fact that like-for-like volumes remained virtually stable, in combination with the two acquisitions which we made at the beginning of this year. However, retaining and strengthening our market positions in the current market circumstances, which have temporarily become very competitive especially due to the impact of Covid measures, has led to margin erosion in a number of segments. In this context, a number of contracts were agreed upon in Germany of which pricing proved unfavourable for our margin. This has had an impact on both gross profit and underlying EBITDA in the past quarter and will also have a temporary impact in the coming months. It is expected that the total impact will be approximately € 4 million on underlying EBITDA in the first half-year of 2021. Consequently, we expect underlying EBITDA in the first half-year of 2021 to be lower than in the comparative period last year.
The acquisitions of De Hoop Mengvoeders and Mühldorfer Pferdefutter have contributed positively since their incorporation as of the beginning of February 2021. The integration of both companies is going according to plan and will be completely finalised this year.”