In This Article:
FirstFarms delivers satisfactory in challenging market
FirstFarms generates reasonable results despite high inflation on costs and great pressure on sales prices. Turnover increase of 19% and announced expectations for the year are maintained.
The Board of Directors and Management of FirstFarms A/S have today reviewed and adopted the unaudited interim financial accounts for the period 1 January – 30 September 2023.
FirstFarms has in the accounting period realised:
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Net turnover: 345 mDKK (2022: 291 mDKK)
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EBITDA: 79 mDKK (2022: 121 mDKK)
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EBIT: 42 mDKK (2022: 89 mDKK)
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Pre-tax result: 28 mDKK (2022: 77 mDKK)
Production and result generation are satisfactory based on the challenging conditions FirstFarms has operated under during the first three quarters of the year. The result is achieved as a result of a stable, efficient, circular operation and the risk diversification, which is an important and positive characteristic of the Group.
Thus, FirstFarms A/S maintains the announced expectations for 2023. However, with an EBITDA in the lower end of the level of 90-120 mDKK and an EBIT correspondingly in the lower end of the level of 45-75 mDKK.
CEO Anders H. Nørgaard says:
"We are happy to be able to maintain the expectations for the year's result, even though we are in the lower part of the range. Our efficiency and production are stable and when one branch of operation fails as a result of low sales prices or as a result of regional weather conditions, we skillfully compensate in branches of operation. As predicted, 2023 has been a difficult year to operate in and compared to recent record years, 2023 may also appear as a bad year - that's not how we experience it. We are on the contrary happy and proud that we can create the results we do under such difficult conditions.”
The prices have stabilised
The general cost level has been higher in the period compared to the same period last year, and as expected the higher prices of pigs and crops began to decrease in the first half of the year. However, the price decrease has been larger than expected but has now stabilised. For the pigs at an acceptable level. For the crops at too low a level. However, the crops from 2023 have been sold at higher prices than the current market prices. The milk prices are at a reasonably high level.