ForFarmers N.V.

ForFarmers third quarter 2023 Trading Update

Lochem, 3 November 2023

ForFarmers third quarter 2023 Trading Update

“The results in the third quarter show a recovery of underlying EBITDA. Sales volumes did decline compared to last year in the third quarter, but were roughly equal to the second quarter of this year.
The new way of working, in which local organisations are active in the market with various products and specific advice, is bearing fruit. It underpins our confidence in the more positive result development for the second half of the year, as stated in our first half-year press release.
We received permission to sell the compound feed activities in Belgium and closed this transaction in October. We also hope to be able to close the already announced acquisition of Piast in Poland soon. This strengthens the basis for our further development.
Delivering good feed at a competitive price is key to our approach. We have proven this by being able to offer our customers competitive feed prices. This has increasingly led to a stronger market position. Together with farmers we are working at making food production more sustainable. We are doing this very cost-consciously, especially now that the affordability of food is becoming increasingly relevant. I notice among our employees that they want and can make a difference in this. This makes us proud and gives us confidence for the future”, says Pieter Wolleswinkel, CEO of ForFarmers.

Market developments in third quarter 2023
Average prices in Europe for meat and eggs were higher in the third quarter of 2023 than a year before. They were also higher than in the United States, Brazil, and Canada, thus impacting export from Europe. As of the beginning of this year milk prices in Europe have started to drop. Dairy farmers received substantially less for their milk in the third quarter of 2023 than a year earlier. Prices for raw materials and energy were also much lower than in the third quarter of 2022. At that time, the war in Ukraine threatened to create a major shortage of raw materials and energy, causing prices to rise significantly. Given geopolitical developments concerns remain about the availability of raw materials and consequently the price development of raw materials as well as energy and diesel prices remain volatile.