ForFarmers sees strong increase profitability
The Dutch feed producer ForFarmers reported a strong increase in profitability and a like-for-like growth of volume in the first half of 2024.
Total volume, adjusted for the Belgian activities sold and the acquisition of Piast, increased by 2.0% to 4.274 million tons compared to H1 2023; Compound feed volume increased by 0.7% to 3 million tons
Total revenue came to €1.355 billion, a like-for-like decrease of 15.3% while gross profit increased by 5.4% to €249 million. Pieter Wolleswinkel, CEO ForFarmers: “The positive trends of the first quarter have continued, with a significant increase in profitability in the second quarter as well. We strengthened our market positions in this first half of the year, resulting in a satisfactory volume development. The right product and market choices underpin this result and our local approach is valued by customers.”
“The integration of Piast in Poland, acquired early this year, is well on track and we are satisfied with the performance. We are also pleased with the announcement of the intended acquisition of Van Triest Veevoeders, which specialises in co-products. We are convinced that this will enable us to play an increasingly important role in providing sustainable feed solutions. With this acquisition, we fully focus on a market with clear growth potential. Despite macroeconomic and (geo)political uncertainty, we are confident about the future.”
External developments: Rise in raw materials
The company also gives an overview of market and other external developments. Raw material prices rose again in Q2 after a long period of decline. Pig and poultry markets are fairly stable in all countries. The number of dairy cows is declining in Western Europe due to farmers exiting the industry. Due to the wet spring, in particular cows have been kept indoors for longer. There was limited impact of diseases such as avian flu. Continued uncertainty regarding legislation and regulations in Western Europe.
Strategic steps
ForFarmers is pursuing the execution of its strategy with conviction, while continuing to focus on its local approach, growing and attractive markets and cost control. Important strategic steps have been taken with portfolio choices, including expansion in Poland and the divestment of the Belgian compound feed activities. Based on its mission ‘For the Future of Farming’, ForFarmers is committed to sustainable livestock farming with a robust earnings model for the farmer. This also involves working hard to promote biodiversity, for example by using alternative protein sources, circular raw materials such as co-products from the food industry and further reducing CO2 emissions.
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