ForFarmers reports profit again and gains confidence

Livestock feed group ForFarmers sold less feed in the third quarter compared to the same period last year. Nevertheless, the company uses a fairly optimistic tone in the press release, given that the financial result does show improvements. Feed sales did not decline further compared to the previous quarter.

ForFarmers had difficult years, but seems to be slowly recovering. The reorganization announced at the end of last year is already bearing fruit, it is stated. The underlying Ebitda (profit before deduction of interest costs, taxes, depreciation and amortization) increased by 33,6%. Gross profit recorded a plus of almost 5%. It should be noted that the third quarter of 2022 was disappointing. Nevertheless, the result does show improvements. Partly due to incidental charges, ForFarmers came into the first half This year will result in a loss of €12,8 million.

The better quarterly figures are also good for investors. Shortly after the stock market opened this morning, the share was again above €2,50. This is the highest level since the announcement of the half-year figures in August. 

Gives confidence
Feed sales are still under pressure year on year. In the past quarter, sales volumes including by-products fell by 6,2%. On this point too, the bottom seems to have been reached for the time being, because feed sales did not fall any further in the third quarter than in the previous quarter. In their own words, this is due to offering competitive feed prices to customers. According to CEO Pieter Wolleswinkel, the quarterly figures all give confidence for the future.

ForFarmers has not yet found a successor for outgoing CFO Roeland Tjebbes. That is why an interim manager in the person of Hans Kerkhoven will take over for the time being at the end of this month.

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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