Annual figures ForFarmers: more profit, less turnover

ForFarmers is perfectly able to refute figures in the year in which it was listed on the stock exchange. Over the past year, the Lochem-based animal feed group recorded a higher net profit than in 2015, while shareholders' equity and, by extension, the solvency percentage have also increased.

After a turbulent year, ForFarmers has finally taken stock. In May 2016, the company received the long-awaited stock exchange listing on Damrak in Amsterdam, which can be seen as a highlight. However, given the choice for Brexit in Great Britain, ForFarmers has also been faced with the necessary challenges. For example, the devaluation of the British pound did not initially benefit the financial results, because turnover in England is ultimately expressed in euros on the balance sheet. In the longer term, ForFarmers does foresee possible benefits of Brexit.

On balance, the volume of animal feed sold in 2016 rose by 2,5 percent to 9,25 million tons. 1,1 percent of this growth was achieved through acquisitions and the other 1,4 percent through organic power. The turnover of 2,1 billion euros shows a contraction of 6 percent. This is mainly due to lower commodity prices. It is striking that the 'One ForFarmers strategy' is bearing fruit on the net profit. While the gross profit of more than 407 million euros is 4 percent lower than in 2015, the net profit increased by 5,8 percent to 67,8 million euros. According to ForFarmers, the lower turnover and gross profit are mainly due to a negative exchange rate difference.

According to CEO Yoram Knoop, ForFarmers has had a strong year. Thanks to the efficient Total Feed approach, ForFarmers remains an attractive partner on the farm. Even when the results of livestock farmers are under pressure. For 2017, Knoops predicts that volatility in commodity prices and currency markets will continue. Nevertheless, ForFarmers is full of confidence, especially because the yield prices at livestock farmers have left the critical zones in the past year.

In the past year, ForFarmers' equity increased by around 22 million to 429 million euros. The solvency percentage also increased by approximately 3 percent to 55,3 percent. With these figures, the balance sheet of ForFarmers is in a good position to follow up the 'One ForFarmers strategy'. 

The ForFormars share reacted positively to the 2016 annual figures on Tuesday morning. At around 9.30 am, the share was about 12 cents higher at 7,60 euros. 

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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