ForFarmers N.V.: ForFarmers 2022 results

ForFarmers NV

23/02/2023 06:00

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Lochem, 23 February 2023

ForFarmers 2022 results

Financial highlights 2022(1):

 Total Feed (2) volume:          -6.6% to 9.0 million tonnes; down in every cluster                                                                            
 Of which compound feed volume:  -7.8% to 6.3 million ton; decline mainly in swine sector; growth in the poultry sector in Germany/Poland                      
 Revenue                         +24.1% to €3,315 million; due to higher raw material and energy prices                                                        
 Gross profit:                   +13.4% to €494.8 million; up relatively less than revenue due to high raw material prices and like-for-like volume decline    
 Underlying EBITDA:              -2.7% to €76.1 million; due to sharp increase in energy costs                                                                 
 Underlying EBIT:                -4.4% to €38.9 million                                                                                                        
 Underlying net profit (3):      +3.4% to €30.0 million                                                                                                        
 Working capital:                €38.8 million (2021: €37.4 million)                                                                                           
 ROACE (4) (based on EBIT)       7.8% (2021: 8.4%)                                                                                                             
 Dividend proposal:              €0.20 per ordinary share (2021: €0.29, of which €0.19 regular dividend)                                                       

 
1. Results are always compared year-on-year
2. Total Feed covers the entire product portfolio and consists of compound
feed, specialties, co-products (including DML products), seed and other
products (such as forage)
3. Net profit: in this context is defined as profit attributable to
shareholders in the Company
4. ROACE  means underlying EBIT (EBITDA) divided by 12-months average capital
employed
Roeland Tjebbes, CFO of ForFarmers: “2022 was a difficult year on several
fronts. We are therefore especially proud that our employees have made a huge
effort to continue supplying feed to our customers on time and as agreed, even
when the availability of raw materials became uncertain as a result of the
dreadful war in Ukraine. Our volumes decreased, mainly due to the decline in
the pig sector as a result of the contraction in this sector. Nevertheless, we
achieved solid underlying EBITDA and underlying net profit that was higher
than last year. This was thanks to tightened processes and a strong
contribution from the Germany/Poland cluster and despite the sharp rise in raw
material and energy prices. In the Netherlands we stood shoulder to shoulder
with our farmers to emphasize that we believe that partnering and innovation
are more effective solutions to the nitrogen problem than only restructuring.
We see that the agricultural sector is facing an important transition. In our
recently launched revised strategy 2025, we consequently put even more
emphasis both on making our production processes more sustainable and on
developing innovative feed concepts that reduce the impact of the sector on
climate and nature. We do this through targeted sourcing of raw materials and
co-products, proper utilisation of feed and appropriate advice. Our dairy
customers in the Netherlands for example have already significantly reduced
their greenhouse gas emissions.”

Theo Spierings, CEO of ForFarmers: “I recently joined ForFarmers as CEO.
During conversations and meetings over the past two months, I have been struck
by the knowledge, experience, dedication and passion that are present in the
company. Given the changes facing our sector, this provides a solid
foundation. After all, there is currently a lack of a clear vision in the
sector with regard to how we can make the sector more sustainable in a fitting
and correct manner. That has to change and I want to actively contribute to
this with ForFarmers. So that all players in the chain know where they stand
and can act accordingly. I am confident that we can do this. We have a good
team and our strategy and focus are clear. In addition, we have recently
tightened the core values, building on the already existing corporate culture.
This culture will help us to adapt the organization needed to properly
implement the strategy. 
 We cannot do without our customers, the members of the cooperative,
employees, shareholders, suppliers and other stakeholders. On behalf of myself
and my colleagues in the Executive Team I want to thank them, for the trust
placed in us in 2022."

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For more information:
Caroline Vogelzang, Director Investor Relations  
 T: +31 6 10 94 91 61 
 E: caroline.vogelzang@forfarmers.eu 

Company profile ForFarmers N.V.  
ForFarmers N.V. (Lochem, the Netherlands) is an international organisation
that provides complete and innovative feed solutions for conventional and
organic livestock farming. With its “For the Future of Farming” mission,
ForFarmers is committed to the continuity of farming and to further increasing
the sustainability of the agricultural sector. 

With annual sales of around 9 million tons of animal feed, ForFarmers a
prominent player in Europe. The company is active in the Netherlands, Germany,
Belgium, Poland and the United Kingdom. ForFarmers has approximately 2,500
employees. In 2022, the turnover amounted to  approximately € 3.3 billion.
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, F: +31
(0)573 28 88 99, info@forfarmers.eu, www.forfarmersgroup.eu 

Look for footage on www.forfarmersgroup.eu/en/media/imagery.aspx 

FORWARD-LOOKING STATEMENTS 
 This press release contains forward-looking statements, including those
relating to ForFarmers legal obligations in terms of capital and liquidity
positions in certain specified scenarios. In addition, forward-looking
statements, without limitation, may include such phrases as “intends to”,
"expects“, “takes into account”, "is aimed at “, ''plans to”,
"estimated" and words with 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 mean that there could be
material differences between actual results and performance and expected
future results or performances that are implicitly or explicitly included in
the forward-looking statements. Factors that may result in variations on the
current expectations or may contribute to the same include but are not limited
to: developments in legislation, technology, jurisprudence and regulations,
share price fluctuations, legal procedures, 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 last
published annual report. The forward-looking statements in this press release
are only statements as of the date of this document and ForFarmers accepts no
obligation or responsibility with respect to any changes made to the
forward-looking statements contained in this document, regardless of whether
these pertain to new information, future events or otherwise, unless
ForFarmers is legally obliged to do so.