ForFarmers continues upward trend in first half of 2024

ForFarmers has achieved excellent results in the first half of 2024. Although the revenue took a significant hit, both the autonomous feed sales and EBITDA (profit without interest expenses, tax obligations, and depreciation) increased. Pieter Wolleswinkel, CEO of the publicly traded animal feed company, expresses pride and satisfaction. The announced acquisition of Van Triest Veevoeders reinforces that feeling.

Looking at the key figures, the independent volume growth of 2%, adjusted for the sold Belgian activities and the acquisition of Piast in Poland, may be the most striking. In a market with declining livestock numbers, this is not a bad performance. The feed volume sold increased by 0.7%. 

On track for profit
As a result of lower raw material prices, revenue decreased by about 15% to €1.35 billion. The EBITDA, an important indicator for net profit and a key metric for investors, shows a strong increase of 114.7% and amounts to €43.8 million. Last year, ForFarmers incurred a limited loss, but this year they are clearly on track for profitability. The earnings per share for 2024 currently stand at €0.05. Wolleswinkel attributes the improved profitability in the past quarter to strengthening market positions. According to him, this is a result of the localized approach appreciated by customers.

Furthermore, the CEO expresses satisfaction with the integration of the feed company Piast acquired last year in Poland. He further describes the announced acquisition of Van Triest Veevoeders in June as a significant strategic move. "With this acquisition, we are fully committed to a market with clear growth potential," says Wolleswinkel. 

Stock price still lags behind
Meanwhile, ForFarmers has been on the road to recovery for a year now, as the recovery began in the third quarter of 2023. However, this has not yet led to a significant improvement in the stock value relative to the company's potential, although a cautiously rising trend is visible. Based on the figures presented today, it seems to be only a matter of time before the €3 threshold on the Damrak is crossed again.

Wouter Baan

Wouter Baan is the editor-in-chief of Farmerbusiness and a market specialist in dairy, pork, and meat at DCA Market Intelligence. He also tracks developments within the agribusiness sector and conducts interviews with CEOs and policymakers.

w.baan@farmerbusiness.com

© DCA Market Intelligence. Op deze marktinformatie berust auteursrecht. Het is niet toegestaan de inhoud te vermenigvuldigen, distribueren, verspreiden of tegen vergoeding beschikbaar te stellen aan derden, in welke vorm dan ook, zonder de uitdrukkelijke, schriftelijke, toestemming van DCA Market Intelligence.