FirstFarms A/S' Annual report 2023

The foundation for strong growth in place

FirstFarms A/S achieves the second-best operating result (EBITDA) since the listing on the stock exchange in 2006. The foundation for strong growth and fulfilment of the 2028 strategy is in place with a satisfactory 2023 result and a capital injection at the beginning of 2024.

FirstFarms has in 2023 realised:

• A turnover of 462 mDKK        (2022: 418 mDKK)
• An EBITDA of 101 mDKK        (2022: 147 mDKK)
• An EBIT of 50 mDKK                (2022: 96 mDKK)
• A result after tax of 26 mDKK        (2022: 65 mDKK)

Equity has increased from 683 mDKK to 723 mDKK. The total strengthening of the capital amounts to 40 mDKK. The group will thus end up with a solvency ratio of 48% at the end of 2023.

The Board of Directors and Management of FirstFarms A/S have today reviewed and adopted the annual report for 2023.

FirstFarms expects to initiate a share buyback of up to 105,000 shares to cover the warrant program. Pursuant to authorisation, the share buyback was approved at the company's ordinary general meeting on 25 April 2023.

2023 offered difficult market conditions. A combination of high milk and pig prices as well as a stable, efficient and circular operation, ensures however that FirstFarms delivers a result within the range of the announced expectations and achieves an increase in turnover of 10%.

"Risk spreading in both operations and geography has become our positive trademark and is again an important factor in our ability to deliver positive results. Risk spreading is part of our DNA and gives us the resilience that is necessary," says CEO Anders H. Nørgaard.

High level of activity
2023 offered a wide range of activities - for example:

• Two new pig productions in Hungary were taken into use and are now operating at 100 percent
• Establishment of large irrigation system in Romania – ready for use now
• Setting up solar panels on several production units
• Continued investigations into the possibility of starting biogas production
• Strategy development and organisational adjustments
• ESG measures, e.g. mapping of greenhouse gas emissions and development of sustainability plans for the individual production units.

"After many months of thorough work, we were able to present our ambitious new strategy at the end of the year; "Strategy 2028", which will ensure our continued journey of growth. At the same time, we made a number of organisational changes and implemented a new broad distribution of responsibilities and tasks, which means that the organisation is scaling up and ready for the upcoming growth task, says Anders H. Nørgaard.