News Annual figures
ForFarmers sees volume shrinking and costs rising
ForFarmers has had a difficult year. Although turnover increased as a result of increased prices for raw materials and acquisitions passed on through the chain, an increase in costs resulted in considerably lower margins and a lower EBITDA. The animal feed group foresees continued high costs for raw materials and energy due to the 'worrying situation in Russia and Ukraine.' The total volume sold decreased slightly.
The turnover of ForFarmers increased by 13,5% to € 2,67 billion. This increase is the result of passing on the increased raw material prices to customers and the acquired acquisitions. Margins fell sharply in the second half of the year, however, due to increased energy prices. According to the company, the higher production and transport costs could not be passed on sufficiently in the chain. The EBITDA for the past year amounted to € 78,2 million. That is €18 million, or 18,7%, lower than a year earlier. The total volume sold decreased by 0,8%. Organic volume contraction amounted to 3,2%, which was partly corrected by 2,5% volume growth from acquisitions.
Results by cluster
In the 'Netherlands/Belgium' cluster, the organically sold 'Total Feed volume' fell by 5%, with the compound feed volume sold falling somewhat faster. ForFarmers saw sales fall in the past year, mainly as a result of the warm restructuring scheme in the Dutch pig farming sector and a shrinking livestock sector in Belgium.
In the 'Germany/Poland' cluster, sales remained stable. A recovering poultry production in Poland, after the corona-related dip a year earlier, compensated for the volume decline in the cattle farming and pig sectors. According to the animal feed group, the volume decline in those sectors is the result of the decision to trade less in single products in those countries. Compound feed sales increased organically due to growing sales of poultry feed and stable sales in the ruminant and pig sectors. In the United Kingdom the 'Total Feed volume' decreased by 2,3%.
In an explanation of the figures, ForFarmers calls the past year a 'turbulent year for the company and its customers'. The group expects continued pressure on margins for the first half of this year, as a result of which 'underlying EBITDA will show a significant year-on-year decline, especially in the first half'. The tense situation in Eastern Europe plays a role in this. Yoram Knoop will leave in April and reports that the search for his successor is still in full swing. In addition, Knoop indicates that ForFarmers is busy evaluating and, where necessary, fine-tuning its strategy due to changes and challenges in the agricultural sector.
Steve Wissink
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