ForFarmers further strengthened its financial position

The volume of compound feed sold increased 30.7% to 6.4 million tonnes in 2013. This was due to a particularly strong organic increase in the sales volumes of compound feed in the United Kingdom, and a more modest increase in Belgium, while compound feed sales volumes were down in the Netherlands and Germany. Volumes were up 2.2% compared with the pro forma 2012 results.

Consolidation effects accounted for 26.5% of the increase in turnover, as a result of the acquisition of Hendrix (Netherlands, Belgium, Germany) and BOCM PAULS (UK), which were consolidated in the 2012 results for nine and six months respectively.  Compared with the pro forma 2012 results, turnover was up by 2.4%. The increase in turnover (in local currency terms) was particularly strong in the UK, with a rise of 15.3%. Germany and Belgium booked a slight dip in turnover last year. Turnover from organic compound feed is still modest, but increased in 2013.

Gross profit rose by 24.8% to € 387.5 million. Gross profit fell by € 13.4 million compared with the pro forma 2012 results. At constant rates, this drop came in at € 7.5 million. The decrease in gross profit was due to the greater volatility of raw materials prices during the year under review and compared with the previous year, which pressured margins, especially in Belgium and Germany. Total result (after taxes) came in at € 31.1 million, compared with € 52.7 million in 2012. The 2012 results included a profit from discontinued activities of € 15.5 million, related to Cefetra and Probroed.

Yoram Knoop, CEO ForFarmers is pleased with the 2013 results: “Last year was for us largely dominated by the integration of Hendrix and BOCM PAULS. Underlying turnover and results proved to be relatively robust and were in line with expectations, despite the challenging market conditions. We further strengthened our financial position, partly due to more effective working capital management and the proceeds from the sale of Cefetra.”

For the coming years, ForFarmers wants to increase its market position by increases in scale, international growth through acquisitions and a constant focus on operational excellence. ForFarmers plans to expand the internationally-operating innovation team, which will increase its focus on forging and expanding strategic alliances with partners and joint ventures with universities and research institutes. On the sustainable business front, the company will be adopting a more integrated and structured sustainability policy to obtain the desired leading position on this front in the years ahead.