ForFarmers N.V.
Results 2019 ForFarmers
Lochem, 12 March 2020
Results 2019 ForFarmers
Key parameters of results 2019:
- Total Feed volume: up 0.7% to 10.1 million tonnes; but like-for-like decline (-2.9%), especially in H2-2019 (-4.0%)
- Compound feed volume: up 1.9% to 7.1 million tonnes; but like-for-like decline (-3.2%), especially in H2-2019 (-3.9%)
- Gross profit: down 0.6% to €440.7 million; despite further volume decline, recovery in H2-2019 compared to H1-2019 (H1: impact of unfavourable purchasing position and also volume decline)
- Underlying EBITDA: down 11.6% to €88.5 million; including positive IFRS 16 effect (€5.8 million); recovery in H2-2019 compared to H1-2019 despite volume decline
- Underlying earnings per share: down 36.2% to €0.37
- Net profit: down by 69.8% to €17.7 million, due to, a.o., goodwill impairment United Kingdom (€25.6 million)
- Dividend proposal: total of €0.28 per ordinary share (regular dividend of €0.19 and a special dividend of €0.09)
- Working capital: improved by 36.2% to €48.7 million due to operational improvements
- Net cash flow from operating activities: up 17.1% to €96 million
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Yoram Knoop, CEO ForFarmers, about the 2019 results:
2019 was a difficult and turbulent year for us. We were faced with the consequences of an unfavourable purchasing position as a result of which the first-half 2019 result was severely put under
pressure. We have since further tightened our purchasing procedure in order to minimise the chance of such a risk recurring. In the second half of 2019, we realised better results despite further
like-for-like volume decline due to challenging market circumstances in all countries except for Poland. This was, among other things, due to the implementation of our efficiency plans, which
included the closure of five mills. We are well on track with the realisation of the earlier announced €10 million cost saving in 2021 (compared to 2018).
The integration of the four companies which we acquired in 2018 has been completed. Our market positions have been strengthened through these acquisitions. We are pleased Tasomix's volumes are
increasing in the growth market Poland. Consequently, our market share in the growing European poultry sector is expanding. Volume development in the United Kingdom is slower than anticipated,
which is why a goodwill impairment was required. Finally, we have improved our operational cash flow through our continuous focus on working capital. In addition, we are pleased to have
significantly reduced the LTIs (lost time incidents).