News Annual figures
Loss of millions forces Agrifirm to reorganize
For the first time since the merger in 2010, Agrifirm has to report red figures. Nevertheless, there is still room for a limited additional payment. In addition to the loss, feed sales figures have also taken a major hit again. The green-yellow cooperative from Apeldoorn is in difficult waters and is therefore forced to reorganize.
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From a turnover of €2,4 billion, which is 13% lower than in 2022, the bottom line remains a loss of €3,6 million. Agrifirm's results have been on a slippery slope for a few years now, but red figures have never been reported before. However, not all key financial figures are negative. Solvency improved slightly to 55%, which is extremely strong. The operational cash flow also shows a significant improvement, which is related to the decreased raw material prices.
Nevertheless, the figures are worrying. Especially when you zoom in on feed sales, which have fallen by about 10% to 4,5 million tons. This means that Agrifirm is performing worse than the market and that is not the first time. Sales of premixes and concentrates, which usually have good margins, even fell by 35%. Agrifirm sold more fertilizer last year and turnover in crop protection products also increased slightly.
Reorganization started
In the annual report, CEO Dick Hordijk lists a number of factors that make the markets challenging. He points to the nitrogen crisis, the volatile raw materials markets and high energy prices. In addition to headwinds in the Dutch home market, there are also setbacks in Belgium and China. But Hordijk is determined to turn the tide. Last year, Agrifirm started anticipating declining sales and started a reorganization in the Benelux.
The cooperative wants to cut costs and create more focus by clustering business units. It is not known to what extent jobs will be lost, but this is obvious. Never before have there been so many FTEs on the payroll. Agrifirm indicates that it is looking for new avenues and opportunities. “We focus on maintaining our market position, improving our internal efficiency and stimulating sustainable innovation,” said Hordijk.
Limited dividend
Despite the loss, Agrifirm's approximately 8.500 members can jointly distribute €7,3 million through a member benefit. This is three quarters less than in 2022, when the dividend was also under pressure.
Read here also the interview with Agrifirm CEO Dick Hordijk about the annual results.
Wouter Job
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