News Annual figures 2022
ForFarmers sees feed sales shrink sharply in a turbulent year
ForFarmers sold considerably less feed in 2022 than in the previous year. Despite the sharply increased prices for feed raw materials and energy, the listed animal feed group managed to limit the drop in profit in a turbulent year. The dividend will go down a bit.
Looking back at 2022, ForFarmers speaks of a 'difficult year', something that is clearly reflected in the sales figures that show the largest decline in the feed giant's recent history. Total feed sales fell by 6,6% to 9 million tonnes. Sales of compound feed even fell by 7,8% to 6,3 million tonnes. The pain is particularly felt in the shrinking pig sector in our country.
The financial figures are less negative. Due to the sharp rise in raw material prices, turnover increased by just under 25% to €3,31 billion. Ebitda, an important indicator for investors, fell by 2,7% to €76,1 million. Below the line, net profit rose by 3,4% to €30 million. In addition, the income is recovering slightly from a sharp decline in 2021. For the shareholders, ForFarmers is proposing a dividend of €0,20 per share. This was €0,29 last year.
Growth in poultry
According to CFO Roeland Tjebbes, 2022 was a difficult year for ForFarmers on several fronts. By this he refers to the war in Ukraine and the resulting sharp rise in raw material and energy prices. The declining animal numbers in the home markets are also affecting sales figures, although the poultry sector in Germany and Poland is growing autonomously despite the bird flu. The challenging market conditions forced an ambitious growth strategy into new markets outside Europe adjusted. In addition, ForFarmers announced a merger of the British activities with 2Agriculture last year, but those plans were thwarted at the beginning of this year by the cartel service in the UK.
Management was also restless and the necessary changes took place. Chris Deen took over as the new CEO in July, but was forced to retire a few months later due to illness. Subsequently, a surprising successor was chosen with the appointment of a former Fonterra CEO Theo Spierings, who signed for a year. Spierings responds to his appointment for the first time in the press release. He says that ForFarmers has a solid foundation to respond to the changing market conditions. Spierings mentions the need to become more sustainable as a sector, in which he wants to play a leading role with ForFarmers. Spierings also expressly thanks the customers and the members of the cooperative FromFarmers, the largest minority shareholder.
60% interest in Vleuten Voeders
It is also striking from the annual report that ForFarmers has transferred an interest of 40% to Vleuten Feeds, with which a joint venture was entered into this year. This construction is a result of the much-discussed subsidiary Vleuten-Steijn Voeders, which ForFarmers previously owned 100%. The annual report also states that the net debt position has risen considerably: from €28,7 to €68,6 million. This is a consequence of the lower cash flow and higher interest costs on borrowed capital.
Wouter Job
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