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ForFarmers N.V.
Earnings Release • Feb 22, 2024
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Earnings Release
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Press release Lochem, 22 February 2024
ForFarmers 2023 results Implementation of 'Local in the lead' bears fruit
Pieter Wolleswinkel, CEO of ForFarmers:
"2023 was a year of transition for ForFarmers in which we achieved an improvement of our results in the second half. The implementation of our strategy, of being even closer to our farmers with a local market approach, is bearing fruit. We are in a strong position to keep on delivering on our promise to our customers: to provide high-quality feed at a competitive price. The acquisition of Piast in growth market Poland is also an important step in the implementation of our strategy. Not only will this enable us to produce more efficiently but the geographical spread also provides good commercial opportunities. Furthermore in October 2023 we sold our Belgian compound feed activities in view of their limited market perspective for ForFarmers.
It is our conviction that livestock farming plays an essential role in safeguarding affordable and sustainable food. We will therefore continue to invest in sustainable solutions such as innovative feed concepts, for example to increase the proportion of co-products in our feed solutions. These are challenging times for many farmers. We look forward to continuing to work on solutions that contribute towards a profitable futureproof farming business, thus putting our mission For the Future of Farming into practice. For ForFarmers, 2023 was a year of both challenges and progress, and the latter fills me with confidence for the future. I am convinced that with our people and our strategy we are on the right track."
Highlights of 2023
- Implementation of 'Local in the lead' is bearing fruit; the second half of 2023 showed a recovery of the market position and a clear improvement in underlying profitability
- Total volume was 8.4 million tonnes in 2023 (2022: 9.0 million tonnes); adjusted for Belgian volumes, compound feed volume in the second half 2023 was in line with the first half
- Gross profit declined 3.5% as a result of the decline in volume and volatile raw material and fertilizer prices. In H2 2023 gross profit rose 2.1% compared to a year earlier
- Underlying EBITDA came in at €70.0 million and underlying EBIT was €32.7 million; this was lower compared to 2022 but, as expected, H2 showed a strong improvement compared to both H1 2023 and H2 2022
- Underlying net profit was €22.7 million. There was a reported net loss of €1.0 million, mainly as a result of one-off non-cash items
- Strongly improved net cash flow from operating activities as a result of favourable developments in working capital and raw material prices
- Successful implementation of organisational changes aimed at more local responsibility and cost-saving measures
- Following the acquisition of Piast in Poland and Thunderbrook (horse feed activities) in the United Kingdom in January 2024 and the sale of the compound feed activities in Belgium, ForFarmers is more strongly positioned for growth
- Dividend proposal of €0.15 per ordinary share (2022: €0.20)
Consolidated key figures
| Total change | Like | |||
|---|---|---|---|---|
| In millions of euro (unless indicated otherwise) | 2023 | 2022 | in % | for-like (2) |
| Total volume (incl. co-products & others; x 1.000 tonnes) | 8,428 | 9,032 | -6.7% | -5.1% |
| Of which compound feed (x 1.000 tonnes) | 5,870 | 6,284 | -6.6% | -5.2% |
| Revenue | 2,974.7 | 3,315.0 | -10.3% | -9.8% |
| Gross profit | 477.3 | 494.8 | -3.5% | -2.4% |
| Underlying (1) operating expenses | -445.7 | -456.6 | -2.4% | -0.9% |
| Underlying (1) EBITDA | 70.0 | 76.1 | -8.0% | -8.6% |
| Underlying (1) EBIT | 32.7 | 38.9 | -15.9% | -18.8% |
| Underlying (1) profit | 22.7 | 30.0 | -24.3% | -25.6% |
Consolidated key figures (continued)
| Total change | Like | |||
|---|---|---|---|---|
| In millions of euro (unless indicated otherwise) | 2023 | 2022 | in % | for-like (2) |
| Underlying earnings per share (x €1) | 0.25 | 0.33 | ||
| Dividend per share | 0.15 | 0.20 | ||
| Net cash from operating activities | 86.5 | 48.2 | ||
| Net debt position | 21.4 | 68.6 | ||
| Underlying EBITDA / Gross profit | 14.7% | 15.4% | ||
| ROACE (3) on underlying EBIT |
7.1% | 7.8% | ||
| Reported | ||||
| Revenue | 2,974.7 | 3,315.0 | -10.3% | -9.8% |
| Gross profit | 477.3 | 494.8 | -3.5% | -2.4% |
| Operating expenses | -475.7 | -471.1 | 1.0% | 2.4% |
| EBITDA | 62.8 | 72.5 | -13.3% | -13.8% |
| EBIT | 4.6 | 24.4 | -81.1% | -84.8% |
| Profit/(loss) attributable to shareholders of the Company | -1.0 | 18.0 | ||
| Basic earnings per share (x €1) | -0.01 | 0.20 |
(1) Underlying means excluding incidental items. See page 4 for a detailed explanation
(2) Like-for-like is defined as the change excluding currency effects and acquisitions and divestments
(3) ROACE means underlying EBIT (EBITDA) divided by 12-month average capital employed
General note: percentages are presented based on the rounded amounts in millions of euros. This may result in slight differences when numbers are added.
Market developments
In 2023 livestock farmers were confronted with:
- Additional and changing legislation and regulations in Western Europe, particularly in the area of sustainability;
- Changeable weather conditions, with a wet spring and a very wet autumn;
- The effects of avian flu outbreaks, mainly in the first half of 2023;
- Low milk prices, with some recovery towards the end of the year;
- Relatively high prices for meat and eggs in Europe.
Other market conditions:
- Shrinking trend in livestock in Northwest Europe;
- Prices of raw materials, energy and fuel declined in 2023 but remain volatile;
- Continued high inflation, impacting consumer demand for meat and dairy products; falling demand for organic products in 2023.
Strategy progress
With the implementation of 'Local in the lead' ForFarmers now has a more decentralised organisation, with operating companies that have been given more responsibilities, including for results. Local management teams have been strengthened and the number of management positions at head office has been reduced. The new way of working involves operating closer to the market: responding to local and specific needs, which translates into stronger positions in various markets.
As part of executing its strategy ForFarmers took over Piast, strengthening its position specifically in the poultry sector in Poland, a key growth market for ForFarmers. The acquisition, which was completed in January 2024, gives us a larger geographical spread in Poland and enables more efficient production. At the same time we divested our Belgian compound feed activities.
In 2023 we again took steps in the area of sustainability. ForFarmers believes that its sustainability initiatives can and will make it part of the solution. ForFarmers cooperates with various parties in the chain to work towards a lower carbon footprint, both for our own production operations and in the chain, including onsite at the farm. In addition ForFarmers now offers a complete range of co-products under the CirQlar Nutrition brand, which was launched in 2023. Co-products are an important part of sustainable feed solutions, which contribute both to profitability and to making our customers' business operations more sustainable. Combining the activities into one brand allows us to target the market even more effectively and to increase the proportion of co-products in the chain.
In the past year ForFarmers took measures to structurally lower its cost base, including reducing the headcount by around 200 FTEs. The reduction was due both to the sale of the Belgian compound feed activities (around 70 FTEs) and the announced organisational changes, which mainly impacted the number of FTEs in the Netherlands and the United Kingdom. The programme also includes measures aimed at increasing efficiency, for example by relocating production to optimise factory utilisation. Lowering and monitoring our cost base is crucial to achieving our overarching objective of supplying high-quality feed at competitive prices.
Notes to the consolidated results for 2023
Total volume decreased by 6.7% to 8.4 million tonnes, with 1.6% of the decline due to the sale of the Belgian compound feed activities. Organically volume fell by 5.1% compared to the previous year. Compound feed volume, as part of total volume, fell by 6.6% (with an organic fall of 5.2%) to 5.9 million tonnes. Adjusted for Belgian volumes, compound feed volume in the second half of 2023 was in line with the first half (-1%), indicating that ForFarmers was able to strengthen its position in a slightly contracting market in the second half of 2023.
Total revenue declined by 10.3% to €2,975 million, mainly due to the decline in raw material and energy prices and lower volumes.
Gross profit declined by 3.5% to €477.3 million. Gross profit development improved in the course of the year with gross profit rising in the second half, both compared to the first half of 2023 and the second half of 2022. The fall in raw material prices and the local approach contributed to this development in all clusters.
The Netherlands/Belgium cluster saw a decrease in gross profit for the full year as a result of more competitive feed prices, lower volumes (especially in Belgium) and the decline in fertilizer prices. Germany/Poland showed an improvement, partly as a result of a better product mix, while gross profit in the United Kingdom remained stable.
Total operating expenses (underlying), including depreciation and amortisation, fell slightly compared to the previous year and amounted to €445.7 million. Production costs fell in 2023 as a result of lower volumes and lower energy costs.
The total number of employees fell by around 200 (FTEs) to 2,269 in 2023 (2022: 2,468), with the average number of FTEs for 2023 down by 63 compared to 2022. Despite this, total staffing costs increased slightly due to wage indexation. There was a positive effect from a release from the provision for bad debts in 2023, mainly as a result of the higher pig prices which meant that customers were more able and quicker to pay. There was a slight decrease in costs not allocated to the clusters as a result of various cost savings, including lower consultancy fees.
Depreciation4 (underlying) remained stable compared to 2022 and amounted to €37.3 million.
4 In this context depreciation means including amortisation
Operating profit (EBIT) (underlying) amounted to €32.7 million (2022: €38.9 million) and EBITDA (underlying) was €70.0 million (2022: €76.1 million). The improvement in gross profit during the year, combined with the lower operating expenses, resulted in a sharp improvement in both underlying EBIT and EBITDA in the second half of 2023. Consequently underlying EBIT and EBITDA in the second half of 2023 were higher compared to both the first half of 2023 and the same period a year earlier.
Net financing expenses (underlying) increased €7.3 million (2022: €5.3 million). Interest expenses were higher due to the higher increased variable interest rates and the increased debt position, in particular in the first half of the year. The net debt position as at 31 December 2023 fell to €21.4 million, with the decrease mainly due to the sale of the Belgian compound feed activities and a significant improvement in working capital.
Share of profit of equity-accounted investees, net of tax,
(the German joint venture HaBeMa) rose to €5.2 million (2022: €4.3 million). The storage and transhipment activities in particular showed an improvement compared to 2022.
The effective tax rate (underlying) fell to 19.9% in 2023 (2022: 22.7%), mainly due to a tax relief relating to research and development (R&D) expenses in Poland.
Net profit (underlying) was €22.7 million (2022: €30.0 million), putting earnings per share (underlying) at €0.25 (2022: €0.33).
Alternative Performance Measures (APMs)
ForFarmers uses APMs to provide a better insight into the business development and financial performance of the group. APMs are key non-IFRS metrics which are presented as 'underlying' (excluding incidental items) and are reported and explained at the level of operating expenses, EBITDA, operating profit (EBIT) and profit attributable to shareholders.
Further information on the APMs can be found in note 16 to the 2023 financial statements.
The following incidental items were recognised at EBITDA level:
Restructuring costs amounted to €7.2 million, partly related to the organisational changes. In addition there was a net expense of €0.2 million relating to business combinations and divestments. Other gains equalled €0.2 million. The balance of APM items at EBITDA level was a loss of €7.2 million in 2023 (2022: a loss of €3.6 million).
At EBIT level (relates to non-cash items):
In addition to €7.1 million in amortisation of acquired intangible assets the following incidental items were included at EBIT level: a goodwill impairment of €4.7 million resulting from the divestment of the Belgian compound feed activities, which was already recognised in the first half of the year. In addition an impairment of €9.1 million was taken on property, plant and equipment in the United Kingdom. The impairment was the result of a downward trend in volumes in the poultry and swine sectors in the United Kingdom, partly due to increasing chain integration. The balance of APM items at EBIT level was a loss of €20.9 million in 2023 (2022: a loss of €10.9 million).
At net financing level (relates to non-cash items):
The €2.4 million loss relates mainly to the annual interest accrued on and revaluation of the put option liability in respect of Tasomix in Poland (2022: a loss of €1.1 million).
At tax level:
In 2023 there was a tax relief relating to research and development (R&D) expenses in Poland. The part relating to previous years has been recognised as a one-off gain (€1.8 million). The impact in 2023 has been recognised in underlying profit.
Financial position and cash flow
Group equity decreased by €23.8 million to €320.4 million. The drop is attributable to the balance of the addition of group profit for the 2023 financial year (€1.9 million, including non-controlling interests) less the distribution of dividend (€21.0 million, including non-controlling interests), share buyback (€1.7 million) and other comprehensive income recognised directly in equity (€3.2 million), mainly as a result of net revaluations of the pension liability due to a lower discount rate compared to 2022.
Net working capital fell to €1.9 million at 31 December 2023 (end-2022: €38.8 million), thanks to lower raw material and energy prices and fewer overdue receivables, despite continued challenging market conditions.
The net debt position was €21.4 million at 31 December 2023 (end-2022: net debt position of €68.6 million). The decrease is mainly due to the aforementioned favourable developments in working capital and the proceeds from the sale of the Belgian compound feed activities.
ROACE based on underlying EBIT fell to 7.1% from 7.8% in 2022 due to the decline in underlying EBIT.
Net cash flow from operating activities increased by €38.3 million to €86.5 million, mainly due to the aforementioned favourable developments in working capital and raw
material prices. Investment activities declined by €27.6 million to €7.2 million due to the sale of the Belgian compound feed activities, while other capital expenditure remained virtually unchanged. Net cash flow for financing activities was an outflow of €66.9 million (2022: outflow of €17.8 million). The increased outflow compared to 2022 mainly due to the aforementioned reduction in net debt following the repayment of the credit facility.
Subsequent events
The acquisition of Piast Pasze Sp. z.o.o. ("Piast") announced in July 2023 was completed in early January 2024.
On 11 January 2024 Pavo, which comprises ForFarmers' activities in the horse feed sector, acquired Thunderbrook Equestrian Limited ("Thunderbrook"). Thunderbrook operates in the United Kingdom and Ireland and its range fits seamlessly with that of Pavo. The acquisition gives Pavo access to Thunderbrook's extensive distribution network.
Results by cluster
Netherlands / Belgium
| 2023 | 2022 | ∆% |
|---|---|---|
| 4,213 | 4,705 | -10.5% |
| 1,500.5 | 1,747.8 | -14.1% |
| 244.0 | 269.3 | -9.4% |
| -218.0 | -233.6 | -6.7% |
| 26.0 | 35.8 | -27.4% |
| 38.4 | 48.2 | -20.3% |
| 15.7% | 17.9% | |
| 12.9% | 17.3% | |
Operational and financial developments in the Netherlands / Belgium
Total volume in the cluster fell to 4.2 million tonnes. The decline was partly due to the sale of the Belgian compound feed activities, which was completed in the third quarter; in light of this the results of these activities have been consolidated up to the end of the third quarter. The Belgian sales activities relating to co-products, Reudink organic feed and Pavo horse feed were not part of the transaction.
The acquisition of new customers in the swine sector prompted a recovery of the market position in this declining market. Factors including the high quality of forage led to a slight decline in the compound feed volume in the ruminant sector in 2023, with the decline levelling off in the fourth quarter. The continued focus on 'Beter Leven' concepts in the poultry market resulted in a decline in the number of chickens.
The uncertainty surrounding the nitrogen plans and hence the future prospects for livestock farmers in the Netherlands continues. Two buy out programmes have been in force in the Netherlands since July 2023, aimed in part at farming businesses that emit large quantities of nitrogen, with around 1,000 farmers having signed up to the schemes so far. However it is too soon to assess the concrete impact this will have on the feed market.
Volumes at Reudink and Pavo were under pressure due to the impact of inflation.
The development of volume and gross profit in the second half of 2023 shows that with its local approach ForFarmers is more successful in operating closer to the market and thus more effective in its buying and selling. Underlying operating expenses decreased due to lower energy costs and the effect of cost savings. The number of FTEs decreased, resulting in lower staffing costs despite wage indexations. Furthermore the costs of the divested Belgian compound feed activities were no longer included in operating costs from the fourth quarter of 2023. Although underlying operating profitability in 2023 was lower than in 2022 there was a sharp improvement in the second half of 2023 compared to both the second half of 2022 and the first half of 2023.
Germany / Poland
| in millions of euro (unless stated otherwise) | 2023 | 2022 | ∆% |
|---|---|---|---|
| Total volumes (compound feed, co-products and others) (x 1.000 tonnes) | 1,944 | 1,993 | -2.4% |
| Revenue | 772.9 | 829.2 | -6.8% |
| Gross profit | 106.5 | 98.6 | 8.0% |
| Underlying operating expenses | -85.4 | -82.4 | 3.6% |
| Underlying EBIT | 22.0 | 16.5 | 33.3% |
| Underlying EBITDA | 29.5 | 23.1 | 27.7% |
| Underlying EBITDA / Gross profit | 27.7% | 23.4% | |
| ROACE on underlying EBIT | 15.7% | 10.5% |
Operational and financial developments in Germany / Poland
ForFarmers managed to achieve a strong result in the German and Polish markets despite challenging market conditions. Volume in this cluster fell by 2.4% on balance to 1.9 million tonnes. Growth in poultry feed was offset by a decline in pig feed due to market contraction and a decrease in ruminant feed due to the cessation of thirdparty production. Volumes stabilised in the German swine sector in the second half of the year, helped by stable pig prices. Increasing sales of feed containing processed animal proteins (PAPs) resulted in positive volume development in the German poultry sector. However the Polish market in particular had to cope with the consequences of avian flu in the first half of the year. In both markets ForFarmers managed to strengthen its market position in the poultry segment.
Gross profit showed a steady upward trend in 2023, increasing by 8% for the full year. The structure of the German and Polish markets is well suited to improving gross profit through a local approach. Underlying operating expenses increased slightly. In Germany ForFarmers succeeded in making its production and logistics costs more flexible to enable it to align better with market demand.
These developments led to a significantly higher underlying EBITDA result in 2023 compared to 2022.
United Kingdom
| in millions of euro (unless stated otherwise) | 2023 | 2022 | ∆% |
|---|---|---|---|
| Total volumes (compound feed, co-products and others) (x 1.000 tonnes) | 2,271 | 2,334 | -2.7% |
| Revenue | 747.2 | 788.8 | -5.3% |
| Gross profit | 126.3 | 126.4 | -0.1% |
| Underlying operating expenses | -126.9 | -124.2 | 2.2% |
| Underlying EBIT | -0.5 | 2.3 | -121.7% |
| Underlying EBITDA | 12.4 | 15.9 | -22.0% |
| Underlying EBITDA / Gross profit | 9.8% | 12.6% | |
| ROACE on underlying EBIT | -0.4% | 1.9% |
Operational and financial developments in the United Kingdom
In the United Kingdom ForFarmers achieved success with its specialist approach in the dairy sector, managing to improve its position in this market. Despite the high availability of good forage and lower milk prices at the end of 2023 the market saw volume growth for the full year.
The non-integrated market for pigs and broilers is contracting amid increasing chain integration. This trend continued, resulting in a loss of volumes.
Poultry volumes were impacted by the effects of avian flu, particularly in the first half of the year.
On balance gross profit showed a stable development over the year, partly due to a higher share of ruminant feeds in the product mix. Underlying operating expenses increased as a result of inflation and higher production costs, partly offset by lower energy costs. The number of FTEs decreased during the year, in line with the sharpened focus. Underlying operating profitability declined.
In early 2023 ForFarmers UK and 2Agriculture abandoned their proposed joint venture announced in 2022. This joint venture was the response to the increasingly integrated poultry market in the United Kingdom. Similar chain integration is happening in the swine sector. ForFarmers has recently been considering the best solution for the future of its customers and operations in the United Kingdom. A reorganisation of the UK organisation was announced today, and as a result the divestment process of two factories starts. Deliveries to customers will be transferred to other ForFarmers locations.
Dividend proposal
ForFarmers' dividend policy is aimed at distributing a dividend of between 40% and 60% of underlying net profit. In 2023 underlying net profit amounted to €22.7 million.
ForFarmers proposes to distribute a dividend of €0.15 per ordinary share, based on 88,776,454 ordinary shares outstanding (2022: €0.20). This represents a payout ratio of 60% of the underlying net profit. The financial statements will be submitted to the Annual General Meeting of Shareholders for adoption on 11 April 2024. The dividend will be made payable on 24 April 2024.
Financial objective
ForFarmers aims to achieve a consolidated return on average capital employed (at the level of underlying operating profit (EBIT)) of at least 10% in 2025, barring any unexpected events.
In view of the ongoing geopolitical, macroeconomic and policy-related uncertainties the company is refraining from making any statements about other financial prospects.
This press release contains information that qualifies as inside information within the meaning of Article 7 paragraph 1 of the EU Market Abuse Regulation.
Other information Audio webcasts
For the media
The Executive Board will elaborate on ForFarmers' 2023 results today from 08.30 to 09.30 CET. The conference call in Dutch) can be followed via live audio webcast by logging on to the corporate website www.forfarmersgroup.eu. The slides used during the call can be downloaded from the corporate website. The audio webcast will remain available on the website afterwards.
For analysts
The Executive Board will elaborate on ForFarmers' 2023 results today from 10.00 to 11.00 CET. The conference call (in English) can be followed via live audio webcast by logging onto the corporate website www.forfarmersgroup.eu. The slides used during the call can be downloaded from the corporate website. The audio webcast will remain available on the website afterwards.
Note to the editor / For further information: ForFarmers,
Marieke Leussink: [email protected] or +31 (0)573 28 88 00
About ForFarmers
ForFarmers N.V. ('ForFarmers') offers complete feed solutions to the (organic) livestock farming industry. With its mission "For the Future of Farming", ForFarmers is committed to a future-proof farming business and making the agricultural sector more sustainable. Our goal is clear: to contribute to a good return and a robust long-term business model. How? By leading the way with knowledge, advice, support and products on the farm. Close to the farmers, solution-oriented and with an open view of the future. The result: a contribution to affordable and sustainable food, For the Future of Farming.
With sales of approximately 8.4 million tonnes of feed, ForFarmers is a leading player in Europe. The company has production operations in the Netherlands (head office), Germany, Poland and the United Kingdom, and exports to various countries within and outside Europe. ForFarmers has around 2,400 employees and generated revenue of approximately €3 billion in 2023.
ForFarmers N.V. is listed on Euronext Amsterdam.
ForFarmers N.V. P.O. Box 91 7240 AB Lochem The Netherlands T: +31 (0)573 28 88 00 [email protected], www.forfarmersgroup.eu
| Consolidated balance sheet | 31 December | 31 December | |
|---|---|---|---|
| in millions of euro (before result appropriation) | Note | 2023 | 2022 |
| Assets | |||
| Property, plant and equipment | 17 | 304.4 | 311.8 |
| Intangible assets and goodwill | 18 | 90.0 | 105.2 |
| Investment property | 0.6 | 0.6 | |
| Trade and other receivables | 20 | 1.5 | 3.4 |
| Equity-accounted investees | 19 | 36.4 | 32.0 |
| Deferred tax assets | 15 | 4.7 | 2.5 |
| Employee benefits | 14 | - | 5.8 |
| Non-current assets | 437.6 | 461.3 | |
| Inventories | 21 | 98.8 | 152.1 |
| Biological assets | 22 | 9.9 | 6.1 |
| Trade and other receivables | 20 | 244.7 | 330.7 |
| Current tax assets | 15 | 3.3 | 1.5 |
| Cash and cash equivalents | 23 | 46.5 | 68.4 |
| Assets held for sale | - | 0.3 | |
| Current assets | 403.2 | 559.1 | |
| Total assets | 840.8 | 1,020.4 | |
| Equity | |||
| Share capital | 0.9 | 0.9 | |
| Share premium | 143.6 | 143.6 | |
| Treasury share reserve | - | - | |
| Translation reserve | -5.9 | -10.5 | |
| Hedging reserve | -1.6 | -1.2 | |
| Other reserves and retained earnings | 175.5 | 184.3 | |
| Unappropriated result | -1.0 | 18.0 | |
| Equity attributable to shareholders of the Company | 24 | 311.5 | 335.1 |
| Non-controlling interests | 31 | 8.9 | 9.1 |
| Total equity | 320.4 | 344.2 | |
| Liabilities | |||
| Loans and borrowings | 26 | 92.0 | 118.0 |
| Employee benefits | 14 | 16.4 | 16.7 |
| Provisions | 27 | 2.7 | 2.5 |
| Trade and other payables | 28 | 28.2 | 24.2 |
| Deferred tax liabilities | 15 | 9.6 | 14.2 |
| Non-current liabilities | 148.9 | 175.6 | |
| Bank overdrafts | 29 | 8.0 | 42.1 |
| Loans and borrowings | 26 | 8.5 | 6.7 |
| Provisions | 27 | 3.1 | 1.7 |
| Trade and other payables | 28 | 349.7 | 449.9 |
| Current tax liabilities | 2.2 | 0.2 | |
| Current liabilities | 371.5 | 500.6 | |
| Total liabilities | 520.4 | 676.2 | |
| Total equity and liabilities | 840.8 | 1,020.4 |
Consolidated statement of profit or loss
| in millions of euro | note | 2023 | 2022 |
|---|---|---|---|
| Revenue | 8 | 2,974.7 | 3,315.0 |
| Cost of raw materials and consumables | 9 | -2,497.4 | -2,820.2 |
| Gross profit | 477.3 | 494.8 | |
| Other operating income | 3.0 | 0.7 | |
| Operating income | 480.3 | 495.5 | |
| Employee benefit expenses | 14 | -174.7 | -167.7 |
| Depreciation, amortisation and impairment | 17,18 | -58.2 | -48.1 |
| Net (reversal of) impairment loss on trade receivables | 1.3 | -3.4 | |
| Other operating expenses | 10A | -244.1 | -251.9 |
| Operating expenses | 10 | -475.7 | -471.1 |
| Operating profit | 4.6 | 24.4 | |
| Net finance result | 6,11 | -9.7 | -6.5 |
| Share of profit of equity-accounted investees, net of tax | 19 | 5.2 | 4.3 |
| Profit (loss) before tax | 0.1 | 22.2 | |
| Income tax expense | 15 | 1.8 | -4.0 |
| Profit (loss) for the period | 1.9 | 18.2 | |
| Profit (loss) attributable to: | |||
| Shareholders of the Company | -1.0 | 18.0 | |
| Non-controlling interests | 31 | 2.9 | 0.2 |
| Profit (loss) for the period | 1.9 | 18.2 | |
| Earnings per share in euro (1) | |||
| Basic earnings per share | 12 | -0.01 | 0.20 |
| Diluted earnings per share | 12 | -0.01 | 0.20 |
1 Earnings per share attributable to the shareholders of the Company.
Consolidated statement of comprehensive income
| in millions of euro | note | 2023 | 2022 |
|---|---|---|---|
| Profit (loss) for the period | 1.9 | 18.2 | |
| Other comprehensive income | |||
| Items that will never be reclassified to profit or loss | |||
| Remeasurement of defined benefit liabilities | 14 | -9.9 | 4.7 |
| Equity-accounted investees - share of other comprehensive income | 19 | -0.0 | 0.1 |
| Related tax | 2.5 | -0.9 | |
| -7.4 | 3.9 | ||
| Items that are or may be reclassified to profit or loss | |||
| Foreign operations - foreign currency translation differences | 5.0 | -5.8 | |
| Cash flow hedges - effective portion of changes in fair value | -0.7 | -0.9 | |
| Cash flow hedges - reclassified to statement of profit or loss / statement of financial position | - | - | |
| Related tax | -0.1 | 0.7 | |
| 4.2 | -6.0 | ||
| Other comprehensive income, net of tax | -3.2 | -2.1 | |
| Total comprehensive income | -1.3 | 16.1 | |
| Total comprehensive income attributable to: | |||
| Shareholders of the Company | -4.2 | 15.9 | |
| Non-controlling interests | 31 | 2.9 | 0.2 |
| Total comprehensive income | -1.3 | 16.1 |
Consolidated statement of changes in equity
| Other | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Share | Share | Treasury share |
Translation | Hedging | reserves and retained |
Unap propriated |
Non controlling |
||||
| in millions of euro | note | Capital | premium | reserve | reserve | reserve | earnings | result | Subtotal (1) | interest | Total |
| Balance as at 1 January 2023 | 0.9 | 143.6 | - | -10.5 | -1.2 | 184.3 | 18.0 | 335.1 | 9.1 | 344.2 | |
| Addition from unappropriated | - | - | - | - | - | 18.0 | -18.0 | - | - | - | |
| result | |||||||||||
| Total comprehensive income | |||||||||||
| Result | - | - | - | - | - | - | -1.0 | -1.0 | 2.9 | 1.9 | |
| Other comprehensive income | - | - | - | 4.6 | -0.4 | -7.4 | - | -3.2 | - | -3.2 | |
| Total comprehensive income | - | - | - | 4.6 | -0.4 | -7.4 | -1.0 | -4.2 | 2.9 | -1.3 | |
| Transactions with | |||||||||||
| shareholders of the Company, | |||||||||||
| recognised directly in equity | |||||||||||
| Contributions and distributions | |||||||||||
| Dividends | 24 | - | - | - | - | - | -17.9 | - | -17.9 | -3.1 | -21.0 |
| Purchase of own shares | 24 | - | - | - | - | - | -1.7 | - | -1.7 | - | -1.7 |
| Equity-settled | - | - | - | - | - | 0.2 | - | 0.2 | - | 0.2 | |
| share-based payments | |||||||||||
| Tax movements | - | - | - | - | - | - | - | - | - | - | |
| directly in equity | |||||||||||
| Acquisition of a subsidiary | - | - | - | - | - | - | - | - | - | - | |
| Total transactions with | - | - | - | - | - | -19.4 | - | -19.4 | -3.1 | -22.5 | |
| shareholders of the Company | |||||||||||
| Balance as at | 0.9 | 143.6 | - | -5.9 | -1.6 | 175.5 | -1.0 | 311.5 | 8.9 | 320.4 | |
| 31 December 2023 |
1 Sub-total equity refers to equity attributable to the Company's shareholders
Consolidated statement of changes in equity (continued)
| Treasury share |
Other | Unap propriated |
Non controlling |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Share | Share | Translation | Hedging | reserves and retained |
|||||||
| in millions of euro | note | Capital | premium | reserve | reserve | reserve | earnings | result | Subtotal (1) | interest | Total |
| Balance as at 1 January 2022 | 0.9 | 143.6 | - | -5.2 | -0.5 | 209.7 | 12.0 | 360.5 | 5.7 | 366.2 | |
| Addition from unappropriated | - | - | - | - | - | 12.0 | -12.0 | - | - | - | |
| result | |||||||||||
| Total comprehensive income | |||||||||||
| Result | 24 | - | - | - | - | - | - | 18.0 | 18.0 | 0.2 | 18.2 |
| Other comprehensive income | 24 | - | - | - | -5.3 | -0.7 | 3.9 | - | -2.1 | - | -2.1 |
| Total comprehensive income | - | - | - | -5.3 | -0.7 | 3.9 | 18.0 | 15.9 | 0.2 | 16.1 | |
| Transactions with | |||||||||||
| shareholders of the Company, | |||||||||||
| recognised directly in equity | |||||||||||
| Contributions and distributions | |||||||||||
| Dividends | 24 | - | - | - | - | - | -25.9 | - | -25.9 | -0.5 | -26.4 |
| Purchase of own shares | 24 | - | - | - | - | - | -15.4 | - | -15.4 | - | -15.4 |
| Equity-settled | - | - | - | - | - | -0.0 | - | -0.0 | - | -0.0 | |
| share-based payments | |||||||||||
| Tax movements | - | - | - | - | - | - | - | - | 0.1 | 0.1 | |
| directly in equity | |||||||||||
| Acquisition of a subsidiary | - | - | - | - | - | - | - | - | 3.6 | 3.6 | |
| Total transactions with | - | - | - | - | - | -41.3 | - | -41.3 | 3.2 | -38.1 | |
| shareholders of the Company | |||||||||||
| Balance as at | 24 | 0.9 | 143.6 | - | -10.5 | -1.2 | 184.3 | 18.0 | 335.1 | 9.1 | 344.2 |
| 31 December 2022 |
1 Sub-total equity refers to equity attributable to the Company's shareholders
Consolidated statement of cash flows
| in millions of euro | note | 2023 | 2022 |
|---|---|---|---|
| Cash flows from operating activities | |||
| Profit (loss) for the year | 1.9 | 18.2 | |
| Adjustments for: | |||
| Depreciation | 17 | 34.8 | 35.1 |
| Amortisation | 18 | 9.6 | 10.4 |
| Net (reversal of) impairment loss | 18 | 13.8 | 2.6 |
| Change in fair value of biological assets (unrealised) | -1.1 | 1.7 | |
| Net (reversal of) impairment loss on trade receivables | -1.3 | 3.4 | |
| Net finance result | 11 | 9.7 | 6.5 |
| Share of profit of equity-accounted investees, net of tax | 19 | -5.2 | -4.3 |
| Gain on sale of property, plant and equipment / investment property | -2.1 | -0.3 | |
| Equity-settled share-based payment expenses | 13 | 0.3 | 0.6 |
| Expenses related to post-employment defined benefit plans | 0.7 | 1.0 | |
| Expenses related to long term incentive plans | 14F | 0.7 | - |
| Income tax expense | 15 | -1.8 | 4.0 |
| 60.0 | 78.9 | ||
| Changes in: | |||
| Inventories & biological assets | 49.7 | -34.6 | |
| Trade and other receivables | 82.3 | -65.4 | |
| Trade and other payables | -88.7 | 82.7 | |
| Provisions and employee benefits | -5.3 | -9.8 | |
| Cash generated from operating activities | 98.0 | 51.8 | |
| Interest paid | -7.3 | -3.5 | |
| Income taxes paid | -4.2 | -0.1 | |
| Net cash from operating activities | 86.5 | 48.2 | |
| Cash flows from investing activities | |||
| Interest received | 0.9 | 0.7 | |
| Dividends received from equity-accounted investees | 2.1 | 2.2 | |
| Proceeds from sale of property, plant and equipment / investment property | 3.9 | 1.0 | |
| Proceeds from sale of participating interests, net of cash disposed | 6 | 25.8 | - |
| Acquisition of subsidiaries, net of cash acquired | 6 | -5.5 | -3.4 |
| Acquisition of property, plant and equipment | -31.4 | -33.4 | |
| Acquisition of intangible assets | -3.0 | -1.9 | |
| Net cash used in investing activities | -7.2 | -34.8 |
Consolidated statement of cash flows (continued)
| in millions of euro | note | 2023 | 2022 |
|---|---|---|---|
| Cash flows from financing activities | |||
| Purchase of own shares | - | -15.4 | |
| Proceeds from sale of treasury shares relating to employee participation plan | - | 0.2 | |
| Purchase of treasury shares relating to employee participation plan | -1.7 | -0.4 | |
| Lease payments | -9.6 | -8.8 | |
| Proceeds from borrowings | 26 | 30.0 | 75.0 |
| Repayment of borrowings | 26 | -65.0 | -43.0 |
| Transaction costs related to borrowings | 26 | -0.1 | -0.1 |
| Dividend paid | 24 | -20.5 | -25.3 |
| Net cash used in financing activities | -66.9 | -17.8 | |
| Net increase/decrease in cash and cash equivalents | 12.4 | -4.4 | |
| Cash and cash equivalents at 1 January | 26.3 | 33.8 | |
| Effect of movements in exchange rates on cash held | -0.2 | -3.1 | |
| Cash and cash equivalents as at 31 December (1) | 23 | 38.5 | 26.3 |
1 Net of bank overdrafts
Delta comparison core parameters 2023–2022
Core parameters 2023 and year-on-year delta versus 2022 (1)
| Total | Like | ||||
|---|---|---|---|---|---|
| 2023 | 2022 | change in % | for-like (2) | ||
| Total Feed volume (x 1,000 tonne) | H1 | 4,310 | 4,526 | -4.8% | -4.8% |
| H2 | 4,118 | 4,506 | -8.6% | -5.4% | |
| FY | 8,428 | 9,032 | -6.7% | -5.1% | |
| Compound feed (x1,000 tonne) | H1 | 2,995 | 3,187 | -6.0% | -6.0% |
| H2 | 2,875 | 3,097 | -7.1% | -4.2% | |
| FY | 5,870 | 6,284 | -6.6% | -5.2% | |
| Gross profit | H1 | 234.8 | 257.3 | -8.7% | -8.1% |
| H2 | 242.5 | 237.5 | 2.1% | 3.7% | |
| FY | 477.3 | 494.8 | -3.5% | -2.4% | |
| Underlying operating expenses | H1 | -226.6 | -233.4 | -2.9% | -2.1% |
| H2 | -219.1 | -223.2 | -1.8% | 0.3% | |
| FY | -445.7 | -456.6 | -2.4% | -0.9% | |
| Underlying EBITDA | H1 | 26.5 | 43.1 | -38.5% | -38.5% |
| H2 | 43.5 | 33.0 | 31.8% | 30.6% | |
| FY | 70.0 | 76.1 | -8.0% | -8.6% | |
| Underlying EBIT | H1 | 8.6 | 24.1 | -64.3% | -65.5% |
| H2 | 24.1 | 14.8 | 62.8% | 57.4% | |
| FY | 32.7 | 38.9 | -15.9% | -18.8% |
1 In millions of euro (unless indicated otherwise)
2 Like for like is excluding acquisition and divestments and currency impact.
Notifications and disclaimer Reporting standards
Publication of 2023 Annual Report
The 2023 Annual Report will be available on the ForFarmers website (www.forfarmersgroup.eu) as of 22 February 2024.
Reporting standards
The figures in this press release are derived from the audited ForFarmers 2023 financial statements, which were prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU.
General note: the percentages presented have been calculated based on amounts in millions of euros rounded to the nearest decimal.
Supervision
Given that its shares are freely traded on Euronext Amsterdam, ForFarmers operates under the supervision of the Dutch Authority for the Financial Markets (AFM) and acts in accordance with the rules applicable to securitiesissuing companies.
Important dates
Financial calendar
| 11 April 2024 | Annual General Meeting of Shareholders |
|---|---|
| 15 April 2024 | Ex-dividend date |
| 16 April 2024 | Registration date for dividend entitlement |
| 24 April 2024 | Dividend payment date |
| 2 May 2024 | Q1 2024 trading update |
| 8 August 2024 | Publication of 2024 half-year results |
| 31 October 2024 | Q3 2024 trading update |
Forward-looking statements
This press release contains forward-looking statements, for example relating to ForFarmers' legal obligations in terms of capital and liquidity positions in certain specified scenarios. In addition forward-looking statements may, without limitation, contain phrases such as "intends to", "expects", "takes into account", "is aimed at", ''plans to", "estimates" and/or words of a similar meaning. These statements pertain to or may affect matters in the future, such as ForFarmers' future financial results, business plans and current strategies. Forward-looking statements are subject to a number of risks and uncertainties which may lead to material differences between the actual results and performance and the expected future results or performance as implicitly or explicitly contained in the forward-looking statements. Factors that may result in, or contribute to, deviations from current expectations include, but are not limited to, developments in legislation, technology, taxation, jurisprudence and regulations, share price fluctuations, legal proceedings, investigations by regulatory bodies, the competitive landscape and general economic conditions. These and other factors, risks and uncertainties that may affect any forward-looking statements or the actual results of ForFarmers are discussed in the most recently published annual report. The forward-looking statements in this press release relate solely to statements as from the date of this document and ForFarmers accepts no obligation or responsibility whatsoever to update the forward-looking statements contained in this release, regardless of whether these pertain to new information, future events or otherwise, unless ForFarmers is legally obliged to do so.