Impressive results and volume growth at ForFarmers

After difficult years, ForFarmers' results in 2024 have clearly been a different kettle of fish. The listed animal feed giant saw both sales volumes and results increase strongly, with the only remaining target being exceeded by a wide margin. CEO Pieter Wolleswinkel speaks of an exceptionally good year with favourable external factors. The dividend is also increasing.

Shrinkage has made way for growth, as the total sales volume has increased by no less than 7% to 9 million tonnes. Of this, slightly less than half was achieved autonomously, the rest is the result of acquisitions. Among others, the Polish Piast and Van Triest animal feed were integrated into the business operations last year. The underlying Ebitda, an important indicator for investors, will increase by 2024% to €44 million in 100,8. Of this, €40,6 million remained in net profit.

The return on invested capital amounts to 13%, compared to 7,1% a year earlier. In recent years, ForFarmers has abandoned many targets, but this has been maintained at 10% and has therefore been exceeded quite generously. Due to the improved figures, the proposal is to increase the dividend by €0,05 to €0,20 per share.

Cost awareness pays off
In an explanation of the figures, CEO Wolleswinkel speaks of 'exceptionally good figures', which are partly the result of favourable circumstances in the market. He refers to the limited impact of animal diseases compared to the previous year. Although it is not called that, the raw materials markets were also in calmer waters last year, which makes it easier to monitor margins. In addition, the reorganisation and the sharpened focus on cost awareness have made an important contribution to profitability.

ForFarmers has also been busy with acquisitions. Last summer, for example, Van Triest Voeders was incorporated and a joint venture with Team Agrar was announced for the German activities. In addition, ForFamers is also making progress on the Polish market, which is still characterised by growth. notable successesAccording to Wolleswinkel, the strategic steps taken have further strengthened the foundation of the company.

Read here an interview with CEO Pieter Wolleswinkel regarding the new strategy that the company has announced. 

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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