ForFarmers N.V.: ForFarmers first quarter 2020 Trading Update
Lochem, 1 May 2020
ForFarmers first quarter 2020 Trading Update
Highlights first quarter 20201:
• Volume Total Feed2: down (-5.3%); like-for-like decline in all clusters;
• Volume compound feed: down (-3.8%); like-for-like decline in clusters Netherlands/Belgium and the United Kingdom, virtually stable volume in cluster Germany/Poland;
• Gross profit: up (4.4%); Q1 2019 included an unfavourable purchasing position;
• Underlying EBITDA3: up (44.1%); compared to a weaker first quarter in 2019; increase due to higher gross profit and lower operating costs as a result of realised efficiency measures among others.
Yoram Knoop, CEO of ForFarmers, states: “Since mid-March we are being confronted by a new reality. We immediately took measures to safeguard the health of our employees and to enable the continuation of the production and distribution of feed to our customers. In addition, our sector has been identified a vital business sector in order not to endanger the food supply. Up to now we have seen no material impact of the COVID-19 measures on our core processes.
In the first quarter of 2020 a substantial increase in underlying EBITDA was realised. This, despite the fact that in some countries volumes declined again due to the pressure on the agricultural sector to decrease the environmental impact. There was no impact of an unfavourable purchasing position in the first quarter of 2020. In addition, despite the volume decrease, there was a better product mix including more specialties and fewer costs due to implemented cost saving measures.
Looking forward we see changing market circumstances due to COVID-19, with challenges arising for our customers, the ultimate impact of which on ForFarmers is still uncertain. We expect to realise a better underlying EBITDA in the first half-year 2020 compared to the first half of 2019, but in light of the increased uncertainties due to COVID-19, we refrain from expressing any further expectations.
We continue to focus on the health of our employees and on supporting our more than 26,000 customers through the delivery of quality feed and advice. Above all, I am especially proud of the effort and dedication of our employees towards our customers. For this I would like to thank them personally and on behalf of all the members of the Executive Committee”.
1. Results and developments of the third quarter 2019 are compared to those of the third quarter 2018, 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)
3. Underlying EBITDA means EBITDA excluding incidental items
This press release contains information that qualifies as inside information in the sense of Article 7 paragraph 1 of the EU Market Abuse Regulation.
Note to the editor / For additional information:
Caroline Vogelzang, Director Investor Relations and Communications
T +31 (0)573 288 194 • M +31 (0)6 10 94 91 61 • E:
Company profile
ForFarmers N.V. is an international organisation that offers complete and innovative feed solutions for livestock farming. With its “For the Future of Farming” mission, ForFarmers is committed to the continuity of farming and further sustainalising the agricultural sector.
ForFarmers is the market leader in Europe with annual sales of 10.1 million tonnes of animal feed. The company is operating in the Netherlands, Germany, Belgium, Poland and the United Kingdom. ForFarmers has approximately 2,600 employees. In 2019, the turnover amounted to approximately € 2.5 billion. ForFarmers N.V. is listed on Euronext Amsterdam.
ForFarmers N.V., P.O. Box 91, NL-7240 AB Lochem, T: +31 (0)573 28 88 00, F: +31 (0)573 28 88 99, , /en
FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements that can also relate to ForFarmers’ legally required capital and liquidity positions in certain specific scenarios. Forward-looking statements can include but are not limited to statements that include words such as, “intended”, “expected”, “based on”, “focused on”, “plans”, “estimate” and words with similar meanings. These statements relate to or can have an effect on circumstances that will occur in the future, such as ForFarmers’ future financial results, business plans and current strategies. Forward-looking statements are subject to various risks and uncertainties that could cause actual results and performance to differ materially from the expected future results or performances that are implicitly or explicitly included in forward-looking statements. Factors that can lead to or contribute to differences in current expectations include, but are not limited to: developments in legislation, technology, taxes, laws and regulations, fluctuations in share prices, legal procedures, investigations by regulators, competitive relationships and general economic conditions. These and other factors, risks and uncertainties that may affect any forward-looking statement or the actual results of ForFarmers are discussed in the latest published annual report. The forward-looking statements in this document only concern statements from the date of this document, ForFarmers accepts no obligation or responsibility whatsoever to update forward-looking statements contained in this message, irrespective of whether they reflect new information, future events or otherwise, subject to ForFarmers’ legal obligation to do so.
