ForFarmers trading update Q1 2024: Like-for-like volume growth and strong increase operational profitability

Lochem, 2 May 2024

ForFarmers trading update Q1 2024
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.
• ROACE¹ ratio 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 The ROACE ratio on the underlying EBIT increased from 7.1% as of December 31, 2023, to 8.7% as of March 31, 2024.

Read and download the full press release on our website.

Note to the editor / For further information:
ForFarmers, Floor van Maaren: floor.vanmaaren@forfarmers.eu or +31 (0)573 28 88 00 

About ForFarmers
ForFarmers N.V. (‘ForFarmers’) offers complete feed solutions to the (organic) livestock farming industry. With its mission "For the Future of Farming”, ForFarmers is committed to a future-proof farming business and making the agricultural sector more sustainable. Our goal is clear: to contribute to a good return and a robust long-term business model. How? By leading the way with knowledge, advice, support and products on the farm. Close to the farmers, solution-oriented and with an open view of the future. The result: a contribution to affordable and sustainable food, For the Future of Farming.

With sales of approximately 8.4 million tonnes of feed, ForFarmers is a leading player in Europe. The company has production operations in the Netherlands (head office), Germany, Poland and the United Kingdom, and exports to various countries within and outside Europe. ForFarmers has around 2,650 employees and generated revenue of approximately €3 billion in 2023. ForFarmers N.V. is listed on Euronext Amsterdam.

ForFarmers N.V. -  P.O. Box 91 -  7240 AB Lochem -  T: +31 (0)573 28 88 00  - info@forfarmers.eu, www.forfarmersgroup.eu

Important dates / Financial calendar
08-08-2024: Publication of 2024 half-year results
01-11-2024: Q3 2024 Trading update

FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements, for example relating to ForFarmers’ legal obligations in terms of capital and liquidity positions in certain specified scenarios. In addition forward-looking statements may, without limitation, contain phrases such as "intends to”, "expects”, "takes into account”, "is aimed at”, ‘’plans to”, "estimates” and/or words of a similar meaning. These statements pertain to or may affect matters in the future, such as ForFarmers’ future financial results, business plans and current strategies. Forward-looking statements are subject to a number of risks and uncertainties which may lead to material differences between the actual results and performance and the expected future results or performance as implicitly or explicitly contained in the forward-looking statements. Factors that may result in, or contribute to, deviations from current expectations include, but are not limited to, developments in legislation, technology, taxation, jurisprudence and regulations, share price fluctuations, legal proceedings, investigations by regulatory bodies, the competitive landscape and general economic conditions. These and other factors, risks and uncertainties that may affect any forward-looking statements or the actual results of ForFarmers are discussed in the most recently published annual report. The forward-looking statements in this press release relate solely to statements as from the date of this document and ForFarmers accepts no obligation or responsibility whatsoever to update the forward-looking statements contained in this release, regardless of whether these pertain to new information, future events or otherwise, unless ForFarmers is legally obliged to do so.