ForFarmers reports mixed performance in 2023: profit up in second half, down for full year
NETHERLANDS- ForFarmers, a leading provider of animal feed solutions, has released its financial results for 2023, revealing a nuanced performance characterized by contrasting trends in profitability.
Despite challenges such as declining volume and volatile raw material and fertilizer prices, ForFarmers reported a 2.1% increase in gross profit in the second half of 2023 compared to the previous year.
However, the company experienced a 3.5% decline in gross profit for the full year due to these factors.
The total volume of feed produced in 2023 amounted to 8.4 million metric tons (MMT), down from 9 MMT in 2022. Notably, compound feed volume in the second half of 2023 remained consistent with the first half.
Underlying EBITDA stood at EUR70 million (US$75.8 million), with underlying EBIT reaching EUR32.7 million.
While these figures were lower compared to 2022, the second half of 2023 demonstrated a notable improvement over the first half of the same year and the corresponding period in 2022.
Despite challenges, ForFarmers CEO Pieter Wolleswinkel expressed confidence in the company’s strategic direction, stating, “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.”
Wolleswinkel highlighted the acquisition of Piast in Poland as a significant milestone, enabling ForFarmers to enhance production efficiency and capitalize on commercial opportunities in the region.
Amidst a commitment to sustainability and innovation, Wolleswinkel emphasized ForFarmers’ dedication to supporting farmers during challenging times. He underscored the company’s mission to contribute to the future of farming through sustainable solutions and investment in innovative feed concepts.
Reflecting on the challenges and progress of 2023, Wolleswinkel expressed optimism for the future, stating, “I am convinced that with our people and our strategy, we are on the right track.”
ForFarmers’ performance in 2023 underscores its resilience amidst industry fluctuations and its commitment to delivering value to customers while driving sustainable practices in animal agriculture.
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