ForFarmers slumps on H1 results below expectations

ForFarmers NV

10/08/2023 08:56

** ForFarmers  FFARM.AS  shares fall over 7%, heading for
their worst day in about 4 months, as its H1 misses expectations
    ** The Dutch animal feed maker reports an underlying EBITDA
of 26.5 million euros  ($29.17 million), down around 38% y/y,
and an underlying net profit falling around 74% to 4.4 million
euros 
    ** "We saw a sharp decline in the ForFarmers' 1H23 results,
coming in much weaker than we and (consensus) expected", KBC
Securities says    
    ** "Price competition increased amid volatile market
conditions, putting further pressure on ForFarmers' volumes and
thus also on its gross profit", KBC adds
    ** ForFarmers still expects H2 to be better than H1
    ** KBC remains prudent even though it expects the
acquisition of Polish poultry feed producer Piast, to be
completed by Q4, to increase the company's volumes in Poland and
strengthen its position
    ** The broker cuts its PT by 12.5% to 2.8 euros

($1 = 0.9084 euros)

 (Reporting by Gaëlle Sheehan)
 ((gaelle.sheehan@thomsonreuters.com; +48 58 7785110;))