ForFarmers benefits from farmer returns

Thanks to the improved conditions on the farm, ForFarmers realized a higher gross profit in 2017. In addition, the volume sold also increased, mainly due to the acquisition of Vleuten-Steijn feeds. The so-called performance feeds were also popular last year.

Livestock farmers achieved better returns in 2017, which is why they opted more often for performance feeds. Ultimately, this should lead to better technical results. Various milk prices were at their peak above €40 per 100 kilos, while the piglet prices were at record levels for weeks. According to CEO Yoram Knoop, the newly launched sow concept 'Nova' is also a success.

Operating profit (EBITDA), after adjusting for negative currency effects, was up 8,3% to €101,4 million. Gross profit increased on balance by 3% to €419,8 million, resulting in earnings per share of €0,56 (+12%). The volume sold has increased by 5,8% to 6,7 million tons. In contrast to 2016, turnover also increased: by more than 5% to €2,2 billion.

Red numbers in the UK
In the United Kingdom (UK), ForFarmers achieved less good results than in 2016. Especially in the logistics area, things are not running smoothly there; a new COO have to turn this around. However, there are green figures in the Netherlands, Germany and Belgium.

Continuing to grow is ForFarmers' credo towards 2020. For example, it was recently announced that the Polish compound feed company Tasomix will be incorporated soon. This deal will become final when the Polish authorities approve it.

Stock price up
The share of ForFarmers, listed on the Damrak in Amsterdam, reacts positively to the announcement of the annual figures. At around 9:30 am, the price was up 3,51% at €9,74. This is, however, significantly below €11 per share, the level that the price recorded last October.

Photo: ForFarmers

Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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