ForFarmers plummets after Q3 core profit falls

ForFarmers NV

01/11/2022 08:35

** Shares in ForFarmers  FFARM.AS  plummet 11.6%, heading
for their worst day since mid-August 2019, after the Dutch
agricultural feed company reported a 17% drop in Q3 core profit,
citing the impact of hot summer, animal disease outbreaks,
rising energy costs
    ** The group continues to refrain from providing a 2022
guidance, which according The Idea-Driven Equities' analyst Henk
Slotboom is "understandable"
    ** "The company has to deal with a lot of uncertainties ...
politics, the trading environment, and the fact (it) recently
lost its CEO", he says
    ** Pig and layer farmers, hit by outbreaks of animal
diseases, impacted ForFarmers' quarterly volumes and higher
expenses could not be passed on fully in the supply chain, the
group said
    ** ING says Q3 adj. EBITDA would have been flat, despite
volumes decline, if ForFarmers had been able to pass through
higher energy costs: "unfortunately, this was not the case"
    ** The group also keeps its share buy-back suspended
    ** Oddo BHF's analyst Eric Wilmer expects ForFarmers to
lower its 2025 EBITDA ambition of 125-135 million euros on the
back of "changed market circumstances" on Nov. 17, when the
group revises 2025 strategy
 (Reporting by Diana Mandiá)
 ((diana.mandiaalvarez@thomsonreuters.com))