ForFarmers sinks on H1 volumes and profits drop, no guidance

ForFarmers NV

11/08/2022 09:49

** Shares in ForFarmers  FFARM.AS  slump around 5.5%, after
the Dutch agricultural feed company reported a drop in half-year
feed volumes and net profit, did not provide FY guidance
    ** H1 total feed volume dropped by 7.4% year-on-year to 4.5
million tonnes; H1 underlying net profit fell 4.5% to 17.1
million euros  ($17.66 million)  urn:newsml:reuters.com:*:nFWN2ZMBUJ
    ** "Volume decline was mostly due to a weaker swine sector
in the Netherlands, Belgium, Germany and the United Kingdom,"
ING says
    ** ForFarmers refrained from providing FY guidance, citing
market uncertainties including Ukraine war, possible new COVID
wave, and low water levels in Netherlands' rivers
    ** KBC Securities says drought-related low water levels in
rivers means more vessels are needed to move goods via inland
waterways, leading to transport companies charging more amid
strained supply
    ** "Shipping space has been under pressure for some time due
to the pandemic and the war in Ukraine," the broker adds
    ** H1 underlying EBITDA grew +5.6% to 43.1 million euros,
however "were it not for easy comps...EBITDA growth would be
negative," ING flags
    ** The stock has lost about 20.5% of its value YTD​

    



($1 = 0.9685 euros)

 (Reporting by Olivier Sorgho)
 ((Olivier.Sorgho@thomsonreuters.com))