ForFarmers (FFARM) H1 2024 earnings summary

Executive summary

• Achieved positive trends and strengthened market positions in H1 2024, with improved operational profitability and satisfactory volume development compared to a weak 2023 period.

• 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, supporting growth, sustainability, and operational synergies.

• 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%, with compound feed volumes up nearly 1%.

• Revenue declined 15.6% year-over-year to €1,355.4 million, mainly due to lower commodity, raw material, and energy prices.

• Gross profit rose 6.0% to €249.0 million; underlying EBITDA increased 60.8% to €42.6 million; underlying EBIT up 164% to €22.7 million.

• Underlying net profit reached €16.0 million (H1 2023: €4.4 million); underlying EPS €0.18 (H1 2023: €0.05).

• ROACE on underlying EBIT improved to 10.7%, surpassing the 2025 target.

Outlook and guidance

• Confident outlook for H2 2024, focusing on strategy execution, integration of acquisitions, and sustainability, including carbon footprint reduction and biodiversity protection.

• Continued emphasis on cost control amid ongoing inflation and macroeconomic uncertainty.

• UK reorganization and integration of Van Triest and Thunderbrook to be finalized in H2 2024.