ForFarmers first quarter 2024 Trading Update

2 May 2024 - 07:03

Like-for-like volume growth and strong increase operational profitability

Pieter Wolleswinkel, CEO ForFarmers: “Our (compound) feed volumes show an increase. This is a great achievement and shows that we have been able to further strengthen our market position with our focused local market approach. The volume development confirms that we are contributing to a good return on the farm/a profitable farming business. Our effective buying and selling strategy where we operate close to the market, combined with our actions to reduce our cost base, significantly improved operating profitability in the first quarter. 
The integration of Piast's operations in Poland is progressing well. The reorganisation in the United Kingdom is also on schedule. These developments show that we are on the right track with our strategic initiatives. This strengthens our confidence in achieving our set return target. At the same time, we continue to invest in sustainable solutions so that ForFarmers can play its role in a future-proof food system. I am proud of how our people have worked over the past period to achieve this result.” 

Highlights Q1 2024 

  • Total volume, adjusted for Belgian volumes sold in 2023 and acquired Piast volumes, increased by 0.2% compared to Q1 2023; compound feed volume increased by 1.2% 
  • Gross profit up 2.7% to €124 million, mainly due to more effective buying by operating closer to the market 
  • Strong increase in operating profitability compared to Q1 2023; underlying EBIT up 178.9% and underlying EBITDA up 55.4%, reflecting higher gross margin and lower operating expenses 
  • ROACE ratio1 on underlying EBIT increased from 7.1% at 31 December 2023 to 8.7% at 31 March 2024
  • The integration of Piast and the reorganisation in the United Kingdom are proceeding according to plan
  • ForFarmers continues to focus on its local approach, growing and attractive markets, and cost control 

1. ROACE means underlying EBIT of the last 12 months divided by average capital employed over the same period