ForFarmers reported its gross profit in 2023 declined 3.5% as a result of the decline in volume and volatile raw material and fertilizer prices. However, in the second half of the year gross profit rose 2.1% compared to a year earlier.
Total volume was 8.4 million metric tons (mmt) in 2023, down from 9 mmt in 2022. Compound feed volume in the second half 2023 was in line with the first half.
Underlying EBITDA came in at EUR70 million (US$75.8 million) and underlying EBIT was EUR32.7 million. This was lower compared with 2022 but, as expected, the second half showed a strong improvement compared to the first half of 2023 and second half of 2022.
Underlying net profit was EUR22.7 million. There was a reported net loss of EUR1 million, mainly as a result of one-off non-cash items.
“2023 was a year of transition for ForFarmers in which we achieved an improvement of our results in the second half,” said ForFarmers CEO Pieter Wolleswinkel. “The implementation of our strategy, of being even closer to our farmers with a local market approach, is bearing fruit. We are in a strong position to keep on delivering on our promise to our customers: to provide high-quality feed at a competitive price.”
He added that the acquisition of Piast in Poland is also an important step in the implementation of the company’s strategy, enabling it to produce more efficiently and providing good commercial opportunities.
“It is our conviction that livestock farming plays an essential role in safeguarding affordable and sustainable food,” Wolleswinkel said. “We will therefore continue to invest in sustainable solutions such as innovative feed concepts, for example to increase the proportion of co-products in our feed solutions. These are challenging times for many farmers. We look forward to continuing to work on solutions that contribute towards a profitable futureproof farming business, thus putting our mission For the Future of Farming into practice. For ForFarmers, 2023 was a year of both challenges and progress, and the latter fills me with confidence for the future. I am convinced that with our people and our strategy we are on the right track.”
