After a more than excellent 2023, Farm Frites' results show a considerable decline in the past financial year. Not so much in terms of turnover, but in terms of profit below the line. In the meantime, the company continues to shape its growth strategy to its heart's content, although interests are also being divested.
The decline in profits should be taken into account that revenues in 2023 had risen excessively sharply to a record high. In 2022, profits amounted to more than €40 million, while in 2021 a loss of €15 million had to be recorded.
More expensive potatoes
The profit decline in 2024 is due to higher costs that are felt on several fronts. In particular, the purchase prices of raw materials – mainly potatoes – have increased sharply with an increase of 32% to €563 million. This is a result of the potato price that rose sharply in the first half of 2024 to even €60 per 100 kilos. After that, the potato market imploded, partly due to the declining sales of fries.
At the end of 2024, Farm Frites therefore had much more stock on its books than in the previous financial year. Tonnages are not mentioned, but at the end of the financial year, there were more than €46 million worth of potato products in the freezers. A year earlier, the stocks were downright low, with a value of €5 million. The higher stocks are a sign of the still difficult potato market in 2025. The high stocks will probably continue to haunt Farm Frites in the current financial year. The market is saying that processors are forced to sell part of the stock as animal feed, because the quality sometimes leaves much to be desired.
Investment agenda
In the meantime, the company continues to develop. The annual accounts show, among other things, that Farm Frites sold its 25% stake in Farm Trans to an unknown party last year. Furthermore, Farm Frites announced in 2024 that it would build a new French fries factory in the Saudi capital Riyadh. They are doing this together with Kuwait Food Company. Farm Frites has a 35% stake in this joint venture. Also in Australia is investing in a new factory together with a partner, it was announced at the beginning of March. In Belgium the company wants to double the production of fries.
In its own country, Farm Frites is committed to regenerative agriculture. To this end, a cooperation pact was signed last week with Rabobank and McDonald's Netherlands.