ForFarmers announces strategy 2025

Lochem, 15 September 2020

ForFarmers announces strategy 2025            
Resilient in challenging home countries, expansion to new markets

Today ForFarmers N.V. (ForFarmers/the Company) introduces its strategy Build to Grow 2025 to analysts and investors during a Capital Markets Day. In the coming five years the Company will focus on further strengthening its market positions in existing home countries, by delivering innovative feed concepts that help farmers improve their returns on-farm in a sustainable way. To this end for instance, digitalisation of business processes will be further enhanced, both on-farm and internally at ForFarmers. In parallel, ForFarmers aims to grow by means of acquisitions in existing markets and in new growth markets, potentially outside of Europe. The objective is to be operational by 2025 in 7 countries, and have a more balanced portfolio between developing and mature markets.

Solid financial ambitions with attractive dividend policy
ForFarmers has determined the following financial ambitions for 2025, which are linked to the strategy:

• By 2025 an underlying EBITDA between €125 million and €135 million¹, as a result of both like-for-like growth and acquisitions (2019: €88.5 million and H1 2020: €48.2 million);
• Annual growth (like-for-like, i.e. excluding acquisitions) of underlying EBITDA by 0%-3%¹ (as of 2020) in the challenging home countries;
• Operational costs at least €10 million lower in 2025 compared to 2020;
• A dividend policy, with a distribution of 40%-60% (was 40%-50%) of underlying net profit (after tax). 
  

¹ At constant currencies

Build to Grow 2025: customer focused, innovative, efficient and sustainable
As the leading feed company in Europe, ForFarmers is an important link in the value chain that supplies food, including animal protein, to the growing global population. However, with the exception of Poland, the agricultural sector is experiencing growing pressure in the European home markets of ForFarmers. For example farmers are increasingly faced with extensive environmental measures to reduce phosphate and ammonia emissions by animals. Growth expectations for the agricultural sector in Northwest-Europe are consequentially very limited. On a global scale the feed market continues to grow and remain very large and offers opportunities for strong and innovative players such as ForFarmers, both for organic growth and for further consolidation. ForFarmers is already the leading feed company in Europe and aims to retain and enhance this position.