ForFarmers N.V.

ForFarmers 2023 first-half results

Lochem, 10 August 2023

ForFarmers 2023 first-half results
Results highlight importance of revised strategy and cost savings

Commenting on the 2023 first-half results ForFarmers CEO Pieter Wolleswinkel said:  
“The sharp decline in the result in the first six months of 2023 underlines the importance of the revised strategy, which is decisively being  implemented during this transitional year. Price competition increased amid volatile market conditions, putting further pressure on our volumes and thus also on our gross profit. The answer to this challenge lies in implementing the strategy, in which local responsibility with commercial flexibility and a differentiated approach is key. The reorganisation that this requires is being implemented this year. The outcome is a given: fewer management positions and short lines to the customer. Feed quality is paramount in our offering to customers. We use our knowledge of nutrition and are enforcing cost saving programmes to offer competitive selling prices in our local markets. This approach must lead to improved volume and thus gross profit development. We are convinced that in our markets we can contribute to a strong agricultural chain in which sustainability and returns go hand in hand. We are making progress in ESG; we are increasingly working with farmers and chain partners to further reduce our carbon footprint by, for example, using more residual flows and by providing specific advice. Geographically, choices have been made.We expect to finalise the announced sale of the activities in Belgium by the end of the third quarter. An associated impairment charge has already been included in these results. The choices we have made in the Germany/Poland cluster are encouraging, as evidenced by the results, as is our choice for a differentiated approach to the ruminant sector in the United Kingdom. This underpins our confidence that the second half-year will be better than the first half-year, barring unforeseen circumstances. With our strategy and committed employees, we can make a constructive contribution to a sound, sustainable future for our sector and our stakeholders. The recently announced acquisition of Piast in Poland, which expands our position in this growth market, is an example to this end.”