ForFarmers N.V. 2018 results
Lochem, 13 March 2019
ForFarmers N.V. 2018 results
Key parameters of results 2018
- Total Feed volume: up 4.9% to 10.0mT, on acquisitions (2.8%) and organic growth (2.1%);
- Compound feed volume: up 4.2% to 7.0mT, mainly due to acquisitions;
- Gross profit: up 5.6% to €443.4 million, of which 2.3% from acquisitions (predominantly in H2) and 3.6% like-for-like growth (stronger in H1);
- Underlying EBITDA: down 1.3% to €100.1 million (down 1.0% at constant currencies) despite positive contributions from acquisitions;
- Underlying earnings per share: flat versus prior year;
- Dividend proposal: €0.283 per ordinary share and a special dividend of €0.017 per share. Total dividend therefore €0.30 per ordinary share, equal to 2017;
- Working capital: increase by €7.1 million, due to acquisitions (+€30.4 million) and like-for-like improvement (-€23.3 million).
- Total cost saving €10 million (in 2021 vs 2018) over total group excl. Poland, through optimisation factory footprint and other efficiency projects, including reduction FTE's (125-150, approx. 5-6%) and incorporating existing UK supply chain optimisation plans;
- Strong decline 2019 first-half underlying EBITDA expected compared to first half 2018, due to current purchasing positions in combination with the focus on sustaining market share;
- Proposal for share buy-back programme of €30 million (start after Q1/19 trading update, for 18 months).
Yoram Knoop, CEO ForFarmers, about the 2018 results: "2018 was a year of two sides for us. In terms of strategy we made progress by, amongst others, acquiring four companies. Consequently, we are now operational in five countries and have more sales opportunities in the expanding poultry sector. Our portfolio segmentation across the various species is more in balance: volumes are more equally divided over the ruminant, swine and poultry sector. In 2018 we sold over 10 million tonnes of feed, the first European Total Feed company to do so. Our Total Feed approach enabled us in attracting new customers and achieving further growth among existing customers amid tough market conditions.
Besides these positive developments we were, however, also confronted in the autumn of 2018 by the effects of the extraordinary warm and dry summer months, namely higher inbound logistics costs (low river levels) and more volatility in raw material prices, which we could not fully pass on to customers specifically in the Netherlands and Poland and which impacted our results.
Taking into consideration the 2018 results and mindful of the current market circumstances, we consider it wise to reduce the organisation's cost base over the next two years by implementing extra group-wide efficiency plans. This will involve reducing the number of mills and our headcount as a result of further standardisation and optimisation of our processes. At the same time we will continue to invest in our supply chain and in the introduction of innovative (digital) concepts for our customers.
Despite the fact that due to a temporary unfavourable purchase position we expect our 2019 first half year results to show a strong decline compared to the 2018 first half year results, we have confidence in the outlook thereafter."
Read the full press release in the attached PDF (see below)
Note to the editor / For additional information:
Caroline Vogelzang, Director Investor Relations and Communications
T: +31 6 10 94 91 61
ForFarmers N.V. is an international organisation that offers complete and innovative feed solutions for livestock farming. With its "For the Future of Farming" mission, ForFarmers is committed to the continuity of farming and further sustainalising the agricultural sector.
ForFarmers is the market leader in Europe with annual sales of approximately 10 million tonnes of animal feed. The organisation is operating in the Netherlands, Belgium, Germany, Poland and the United Kingdom. In 2018, ForFarmers has approximately 2,700 employees. In 2018, the turnover amounted to over € 2.4 billion. ForFarmers N.V. is listed on Euronext Amsterdam.
This press release contains forward-looking statements, including those relating to ForFarmers legal obligations in terms of capital and liquidity positions in certain specified scenarios. In addition, forward-looking statements, without limitation, may include such phrases as "intends to", "expects", "takes into account", "is aimed at", ''plans to", "estimated" and words with a similar meaning. These statements pertain to or may affect matters in the future, such as ForFarmers future financial results, business plans and current strategies. Forward-looking statements are subject to a number of risks and uncertainties, which may mean that there could be material differences between actual results and performance and expected future results or performances that are implicitly or explicitly included in the forward-looking statements. Factors that may result in variations on the current expectations or may contribute to the same include but are not limited to: developments in legislation, technology, jurisprudence and regulations, share price fluctuations, legal procedures, investigations by regulatory bodies, the competitive landscape and general economic conditions. These and other factors, risks and uncertainties that may affect any forward-looking statements or the actual results of ForFarmers, are discussed in the last published annual report. The forwardlooking statements in this press release are only statements as of the date of this document and ForFarmers accepts no obligation or responsibility with respect to any changes made to the forward-looking statements contained in this document, regardless of whether these pertain to new information, future events or otherwise, unless ForFarmers is legally obliged to do so.