ForFarmers (FFARM) H1 2024 earnings summary

Executive summary

• Positive trends and improved market positions in H1 2024, with strong like-for-like volume growth and operational profitability compared to 2023.

• Strategic focus on local management, divestments in Belgium and the UK, and acquisitions in Poland (Piast) and the Netherlands (Van Triest) to enhance growth and sustainability.

• Integration of Piast and Van Triest progressing well, with cost control and sustainability as key priorities.

• Agreement to sell two UK mills, with transfer expected in Q4 2024.

• Management remains confident in future prospects despite macroeconomic and geopolitical uncertainty.

Financial highlights

• Like-for-like volumes increased by 2.0%, and compound feed volumes rose up to 1% year-over-year.

• Revenue declined by 15.6% to €1,355.4 million due to lower commodity and energy prices, but gross profit increased by 6.0% to €249.0 million.

• Underlying EBIT rose 164% to €22.7 million, and underlying EBITDA increased 60.8% to €42.6 million year-over-year.

• Underlying net profit reached €16.0 million (H1 2023: €4.4 million); underlying EPS €0.18.

• Net cash from operating activities increased to €25.5 million; net debt rose to €55.7 million, mainly due to acquisitions.

Outlook and guidance

• Confident outlook for H2 2024, with continued focus on strategy execution, acquisition integration, and sustainability.

• Target of at least 10% ROACE by 2025 already achieved in H1 2024.

• Ongoing market volatility, inflation, and regulatory uncertainty remain key challenges.