Lochem (The Netherlands) ̶ “We are satisfied with the progress we have made in the first half of 2018 with regard to all four pillars of the Horizon 2020 strategy.” This is the response of CEO Yoram Knoops of ForFarmers based upon the results over the first half year of 2018.
Total Feed volume in the first half year of 2018 was up 2.1% compared to the same period last year. This resulted in a volume of 4.8 million tonnes with the increase being almost wholly like-for-like. In the Netherlands and Germany/Belgium clusters the increase was mainly due to higher sales of DML2 products. In the United Kingdom there was a decline in Total Feed volume. Volume growth for Total Feed was larger than for compound feed, which reported growth of 0.7%. Like-for-like growth was 0.6% and 0.1% was due to the net effect of acquisitions and divestments. In the Netherlands compound feed volume was virtually stable. The impact on volume of the decline in the dairy herd due to the phosphate reduction measures was offset by volume growth in the poultry sector.
Compound feed volume rose in the Germany/Belgium cluster, once again mainly in the poultry sector. Compound feed volume in the United Kingdom was more or less stable as a result of growth in the ruminant sector and a reduction in the swine sector. The dealer that was acquired last year also contributed to volume growth. Revenue rose by €31.0 million (2.8%) to €1,141.6 million. Like-for-like growth equalled 3.9%. The net impact of acquisitions and divestments was a negative 0.5% and the currency translation effect was a negative 0.6%.
“Our focus on improving on-farm returns was once again reflected in an improved feed efficiency for the animals of our customers. In addition it helped us win more new customers. Total Feed volume saw like-for-like growth and the relating gross profit showed even stronger growth. It is encouraging that we were able to realise a like-for-like improvement in underlying EBITDA in all the clusters, with Germany/Belgium in particular achieving a satisfactory increase. In addition to our own product innovations we also pursue our Total Feed concept through the formation of strategic partnerships”, concludes CEO Yoram Knoops.
“Our strategic partnership with Nutreco (since 2014) was recently extended for five years. The announcement of the acquisition of a 60% stake in Tasomix, Poland, was an important milestone in terms of acquisitions, one of the four pillars of the strategy. As from early July this year we are operational in five countries and have considerably strengthened our position in the European poultry sector. Furthermore we announced our intention to acquire Voeders Algoet in Belgium and Maatman in the Netherlands – both companies that will integrate well within our local organisations.”
Knoops is hesitant to take a standpoint on the expected results for the second half of 2018. “The influence of recent developments, both political and climatological, on our volumes and result for the second half of this year is difficult to predict. We have confidence in the execution of our strategy, both by our existing operations and by the recently acquired companies. We are on track to realise our previously stated medium term guidance”, states the CEO.
The full press release can be found on the ForFarmers website.