In This Article:
-
Volume Growth: Overall volumes increased by 2%, with compound feed volumes up nearly 1%.
-
Revenue: Declined by 15% due to lower commodity prices.
-
Gross Profit: Increased by 5.4%.
-
Underlying Net Profit: EUR16 million, up from EUR4 million in 2023.
-
Underlying EBIT: EUR22.7 million, a 130% increase from the previous year.
-
Underlying EBITDA: EUR42.6 million, up from EUR26.5 million in the previous year.
-
Net Debt: EUR55.7 million, with a net debt-to-EBITDA ratio of 0.71.
-
Return on Average Capital Employed (ROACE): 10.7% for the first half of 2024.
-
Underlying Earnings Per Share: EUR0.18.
-
Solvency Ratio: Slightly above 35%.
Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
ForFarmers NV (FRA:5FF) achieved a significant improvement in operational profitability, with underlying net profit increasing to EUR16 million from EUR4 million in 2023.
-
The company successfully increased its like-for-like volumes by 2%, with compound feed volumes rising nearly 1%.
-
ForFarmers NV (FRA:5FF) has already achieved its 2025 target of a ROACE on underlying EBIT of at least 10% in the first six months of 2024.
-
The acquisition of Piast in Poland and Van Triest Veevoeders aligns with the company's growth and sustainability strategies, enhancing its market position.
-
The company reported a strong cash flow from operational activities, generating more than EUR25 million, despite the acquisition-related increase in working capital.
Negative Points
-
ForFarmers NV (FRA:5FF) experienced a 15% decline in turnover due to falling commodity prices, impacting revenue.
-
The company faced challenges in the UK market, particularly in the pig and poultry segments, leading to the decision to divest two locations.
-
There was an increase in underlying financial costs due to higher interest costs from increased leasing.
-
The company incurred EUR12 million in incidental items, primarily related to the call/put option liability for its Polish joint venture, Tasomix.
-
The net debt increased to EUR55.7 million, reflecting the impact of acquisitions and financing activities.
Q & A Highlights
Q: Is there an adjustment in the gross profit line, as the underlying expenses seem higher than expected? A: Yes, there is a small deviation due to other operating income, which is not significant but affects the gross profit line.
Q: Can you explain the lower-than-expected volumes for Piast in Q1? A: The lower volumes were due to the temporary shutdown of a factory in the north for upgrades. The factory has since reopened, and we are satisfied with the integration and development of Piast.