ForFarmers N.V.: ForFarmers third quarter 2019 Trading Update

Lochem, 31 October 2019

ForFarmers third quarter 2019 Trading Update 

Highlights third quarter 2019¹:

• Volume Total Feed²: small decline (-0.6%); the contribution of the acquisitions could not fully offset the like-for-like volume decline
• Volume compound feed: nearly stable (-0.4%); growth in Germany/Poland nearly compensates the decline in the Netherlands/Belgium and the United Kingdom
• Gross profit: nearly stable (0.4%); the contribution of the acquisitions was about equal to the like-for-like decline. Substantial improvement compared to the first half-year of 2019
• Underlying EBITDA³: increase of 6.9% (including a positive IFRS 16 effect of 6.6%)

Outlook:

• As announced earlier, underlying EBITDA, underlying EBIT and underlying net profit for the full year 2019 will be lower than in 2018 because the decline of the results in the first-half of 2019 (compared to the first-half of 2018) can not be compensated
• Political discussion in the Netherlands about impact agricultural sector on the environment (i.e. nitrogen emissions) can possibly lead to reduction of animals herds

Yoram Knoop, CEO of ForFarmers, states: "The results in the third quarter indicate, among other things, that the effect of the unfavourable purchasing position, which we had in the first half-year, is behind us. We have realised substantial growth in Poland with which we have compensated the effects of the challenging market circumstances in the other countries. We consider the fast growing agricultural market in Poland as an important pillar of growth for the future and are well positioned there with our stake in Tasomix.
The discussion in the Netherlands about which measures should be taken to reduce the nitrogen emissions has led to great unrest among farmers. In this context it is understandable that they remain reluctant to increase their production. It is crucial that the nitrogen discussion is held based on facts and is not only focused on reduction of herd size. We are convinced that much can be achieved in terms of reduction of nitrogen emissions through innovative feed concepts, management measures, better barn designs and effective use of manure. In addition, we are contributing to the realisation of a consistent, long-term vision of the Dutch government vis-à-vis the agricultural sector, in which investments to make the sector more sustainable are being supported.
We made good progress with the implementation of the group-wide efficiency plans, which were announced earlier this year, particularly in the United Kingdom and the Netherlands. This is starting to lead to cost savings. Going forward we will continue to focus on making our organisation more efficient and flexible.”

1. Results and developments of the third quarter 2019 are compared to those of the third quarter 2018, unless stated differently

2. Total Feed covers the entire ForFarmers product portfolio and comprises compound feed, specialties, co-products (from the feed industry, referred to as DML products), seeds and other products (such as forage)

3. Underlying EBITDA means EBITDA excluding incidental items

The full press release is attached as PDF. 

This press release contains information that qualifies as inside information in the sense of Article 7 paragraph 1 of the EU Market Abuse Regulation.

Note to the editor / For additional information:
Caroline Vogelzang, Director Investor Relations and Communications
T +31 (0)573 288 194 • M +31 (0)6 10 94 91 61 • E: caroline.vogelzang@forfarmers.eu

Company profile
ForFarmers N.V. is an international organisation that offers complete and innovative feed solutions for livestock farming. With its "For the Future of Farming” mission, ForFarmers is committed to the continuity of farming and further sustainalising the agricultural sector.

ForFarmers is the market leader in Europe with annual sales of approximately 10 million tonnes of animal feed. The organisation is operating in the Netherlands, Germany, Belgium, Poland and the United Kingdom. In 2018, ForFarmers has approximately 2,700 employees. In 2018, the turnover amounted to over € 2.4 billion. ForFarmers N.V. is listed on Euronext Amsterdam.

ForFarmers N.V., P.O. Box 91, NL-7240 AB Lochem, T: +31 (0)573 28 88 00, F: +31 (0)573 28 88 99, info@forfarmers.eu, www.forfarmersgroup.eu/en

FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements that can also relate to ForFarmers’ legally required capital and liquidity positions in certain specific scenarios. Forward-looking statements can include but are not limited to statements that include words such as, "intended”, "expected”, "based on”, "focused on”, "plans”, "estimate” and words with similar meanings. These statements relate to or can have an effect on circumstances that will occur in the future, such as ForFarmers’ future financial results, business plans and current strategies. Forward-looking statements are subject to various risks and uncertainties that could cause actual results and performance to differ materially from the expected future results or performances that are implicitly or explicitly included in forward-looking statements. Factors that can lead to or contribute to differences in current expectations include, but are not limited to: developments in legislation, technology, taxes, laws and regulations, fluctuations in share prices, legal procedures, investigations by regulators, competitive relationships and general economic conditions. These and other factors, risks and uncertainties that may affect any forward-looking statement or the actual results of ForFarmers are discussed in the latest published annual report. The forward-looking statements in this document only concern statements from the date of this document, ForFarmers accepts no obligation or responsibility whatsoever to update forward-looking statements contained in this message, irrespective of whether they reflect new information, future events or otherwise, subject to ForFarmers’ legal obligation to do so.

Attachment

• 20191031_Press Release_ForFarmers third quarter 2019 Trading Update