October 30,  2020

 

ForFarmers releases third quarter 2020 trading update                

 

 

ForFarmers has today released its highlights for its third quarter performance in 2020.

 

The highlights are:

 

- Volume total feed: Down (-2.8%), a smaller decline than in H1, 2020; stable in clusters Germany/Poland, decline in clusters Netherlands/Belgium and the United Kingdom;

 

- Volume compound feed: Down (-3.7%); smaller decline than in H1, 2020; almost stable volumes in cluster Germany/Poland, decline in clusters Netherlands/Belgium and the United Kingdom;

 

- Gross profit: Down (-6.8%); specifically due to volume decline; margin pressure in Poland and due to temporary deterioration of product mix in the United Kingdom;

 

- Underlying EBITDA: Down (-9.4%); lower operating expenses could not compensate gross profit decline.

 

First phase efficiency plan 2021 & 2022

 

- €7 million (US$8.2 million) cost savings, of which the full effect will be visible in 2023 (compared to the normalised level of 2020);

 

- Savings to be achieved through operational excellence programmes and business process optimisation.

 

"Volumes in the third quarter were lower than in the same period last year when there were no COVID-19 measures and the 'stoppers arrangement' for pig farmers in the Netherlands had, for instance, not yet been put into effect," said Yoram Knoop, CEO of ForFarmers.

 

"However, compared to the second quarter, when the coronavirus impacted all, volumes increased somewhat. As of March, it has certainly not been an easy time for farmers, who saw both their markets decline and prices for their products come under pressure.

 

"It remains to be seen how long COVID-19 will still lead to drastic measures. Farmers, consumers and companies remain cautious in their spending. In our recently presented strategy Build to Grow 2025, we indicated that we will definitely continue to invest in innovative concepts and solutions, which will help our customers achieve better returns especially in changing market circumstances.

 

"That is why cost efficiency and scale are essential. We are therefore making the next step in enhancing the efficiency of our organisation. Furthermore, I am of course tremendously pleased with the acquisition of De Hoop Mengvoeders, which we announced last week. We are creating a leading player in the Dutch poultry market, focusing on delivering the best feed and the best advice."

 

- ForFarmers