26 August 2016
Highlights first half year of 2016*:
- Volume of Total Feed increased by 2.9% to 4.6 million tonnes mainly driven by growth in the Netherlands and Germany/Belgium
- Revenue decreased by 4.4% to €1,070.5 million, due to decreasing raw material prices that were passed on and the devaluation of the Pound sterling, partly compensated by acquisitions
- Gross profit - excluding the negative currency effect - remained fairly stable based on a positive contribution of the Netherlands and Germany/Belgium and a decrease in the United Kingdom
- EBITDA** increased by 7.2% to €46.0 million: the result of cost reductions, following further implementation of the efficiency programme One ForFarmers, and of acquisitions. EBITDA excluding incidental items grew by 8.2% to €46.3 million
- The transition from the trading platform (for depositary receipts) to the listing of the ForFarmers shares (FFARM) on the stock exchange EURONEXT Amsterdam (24 May) proceeded successfully
- In July the acquisition of Vleuten-Steijn in the Netherlands was announced as a result of which the position of ForFarmers in the swine section will be further strengthened. The acquisition is pending approval of the competition authorities.
(*) Results first six months of 2016 are compared to the first six months of 2015
(**) Operating result excluding depreciations and amortisation
Yoram Knoop, CEO ForFarmers:
'In the first half year farmers were still facing challenges due to continuing pressure on prices for milk, meat and eggs. By focusing on improving the returns on farm with our Total Feed approach, the volume of feed that farmers bought from us has increased. The acquisition that we made in the United Kingdom last year also contributed to our result. Both in macro political and macroeconomic terms, the first six months of 2016 continued being restless with the Brexit as the most significant event. The weakening of the Pound sterling had an adverse effect on our results due to the translation of the Pound sterling into Euro. In these challenging circumstances we were able to improve our 'underlying EBITDA'*, largely through the
implementation of our efficiency programme One ForFarmers. These results and the fact that we announced an important acquisition in the Netherlands after balance sheet date, are fully in line with our Horizon 2020 strategy.
The fact that our depositary receipts could previously already be traded via the trading platform was instrumental for the smooth transition to EURONEXT Amsterdam. ForFarmers believes in a strong future for the agricultural sector and we continue to dedicate ourselves to this fully. With that we mean the continuity of the farm, but also the future in a broader sense: a healthy future for the sector and for sustainable food manufacturing as a whole. We do this in close collaboration with our customers, for a better return at the farm, a healthier livestock and a higher
efficiency. Our specialised and expert advisors offer Total Feed solutions on the basis of specific advice. We want to propagate this message even more powerfully and that is why we now launch our mission 'For the Future of Farming'. Everything that we do, we do, because we believe in it. That is good for the farmer and therefore for all stakeholders', says Yoram Knoop, CEO of ForFarmers.
* ‘Underlying EBITDA’ is the operating result before depreciations and
amortisation (EBITDA) excluding incidental items.
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