News Insights

Clear trend reversal in ForFarmers' results

May 2, 2024 - Wouter Baan

Quarter after quarter, ForFarmers reported shrinking volumes and declining profits, but the figures for the first quarter of this year are clearly different in tone. The sold feed volume shows a slight increase again, continuing the trend set at the end of 2023. The Ebitda also shows a convincing recovery.

Adjusted for the sale of the Belgian activities and an acquisition in Poland, the sold feed volume increased by 0.2%. There was already mention of increasing sales volume in the fourth quarter. Although this was not reflected in the figures at that time, as they were only presented in the annual results. The sold compound feed volume increased by 1.2% in the first three months of this year. At first glance, these are modest increases, but at ForFarmers, after a persistent decline in volumes, this may be celebrated with a cake.

Especially since profitability shows a strong improvement, after narrowly reporting losses for the first time last year. In the first quarter, operational profitability almost doubles. The Ebita, an important indicator for investors, increases by over 50%. Just like with volumes, specific profit figures are not mentioned.

'Great achievement'
Pieter Wolleswinkel, now CEO for over a year, speaks of a great achievement which he attributes to the course set focusing on a local approach. He mentions that the reorganization in the United Kingdom is going well, as is the integration of Piast acquired in Poland. "This strengthens our confidence in achieving our stated return objectives." This is 10% on the average invested capital in 2025.

Even after a better quarter, ForFarmers indicates that there will continue to be a focus on cost control. They will also continue to focus on growing and attractive markets. This means that they will continue to seek acquisitions in growth markets. This has been a long-standing ambition of the publicly traded company.

Stock price
ForFarmers' stock closed yesterday at €2.42 per share. This is slightly higher than the record low. Two years after the IPO in 2016, the share was traded for over €12 on the Damrak. The improved results may lead to renewed interest from investors.

Wouter Baan

Wouter Baan is the editor-in-chief of Farmerbusiness and a market specialist in dairy, pork, and meat at DCA Market Intelligence. He also tracks developments within the agribusiness sector and conducts interviews with CEOs and policymakers.