ForFarmers (FFARM) H2 2024 earnings summary

Executive summary

• 2024 saw strong volume and operational profit growth, with strengthened market positions and successful integration of acquisitions in Poland and co-products.

• Strategic acquisitions (Piast in Poland, Van Triest Veevoeders) and a joint venture with team agrar in Germany supported long-term growth and sustainability ambitions.

• Customer focus, flexibility, and sustainability initiatives contributed to improved performance.

• Reorganisation in the UK and divestment of two mills improved operational efficiency; entry into the UK horse feed market via Thunderbrook acquisition.

Financial highlights

• Total volume increased by 7.0% year-over-year; like-for-like volume up 3.5%.

• Gross profit rose 8.6% to €518.3m, driven by higher volumes and effective market approach.

• Underlying net profit attributable to shareholders grew from €22.7m to €40.6m; underlying EPS €0.46.

• Revenue declined 7.7% to €2,745.7m due to lower raw material and energy prices, despite higher volumes.

• Underlying EBITDA rose 44.0% to €100.8m; underlying EBIT up 80.7% to €59.1m.

Outlook and guidance

• Focus on market share growth, capacity expansion in Poland, and implementing the team agrar joint venture in Germany.

• Continued cost control, investment in sustainability (CO₂ reduction, co-products), and market expansion.

• ROACE target of at least 10% towards 2030 to support growth, investments, and dividend policy (40-60% payout ratio).