ForFarmers third quarter 2021 Trading Update

2 November 2021 - 06:58

Highlights third quarter 20211:

  • Volume Total Feed2: down by -1.4%
  • Volume compound feed: up by 1.0%; due to acquisitions and like-for-like growth in Germany/Poland, decline elsewhere
  • Gross profit: up by 2.6%; due to acquisitions and better product mix with more compound feed
  • Underlying EBITDA: down by 22.0% ; due to significantly higher energy

Yoram Knoop, CEO of ForFarmers:
“Our total volume has decreased in the third quarter as a result of the continuing challenging market circumstances. However, the two acquisitions which we made at the beginning of the year and our Polish activities realised good results. Our gross profit rose accordingly. During this quarter we have also made progress with structural cost savings as part of our efficiency programme. However, the increase of energy prices was so substantial that this has led to a significant decrease of underlying EBITDA. How energy prices in particular will develop is unpredictable. We therefore refrain from providing an outlook for the results in the fourth quarter of 2021. Further and faster implementation of the strategy Build to Grow, including our efficiency programme, has the highest priority. We aim to enhance our positions through M&A, in our home countries but also possibly beyond. The intent is to create a better geographical balance of activities. Within the strategy, and given our strong balance sheet, we are also looking at alternatives for capital allocation. We will report about this shortly. In this light, we also intend to distribute a dividend per ordinary share over the year 2021, which is comparable to the dividend over 2020. Finally, we have also changed our management structure to be more agile and decisive in our local markets.”

1. Results and developments of the third quarter 2021 are compared to those of the third 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)