The first quarter of the year 2020 the feed volumes for ForFarmers declined. Despite this production drop the overall financial result was positive. This according to the management is due to the optimisation of the product mix and the cost savings the company made.
Yoram Knoop, CEO of ForFarmers, states: “Since mid-March we are being confronted by a new reality. We immediately took measures to safeguard the health of our employees and to enable the continuation of the production and distribution of feed to our customers. In addition, our sector has been identified a vital business sector in order not to endanger the food supply. Up to now we have seen no material impact of the COVID-19 measures on our core processes.”
In the first quarter of 2020 ForFarmers reached a substantial increase in underlying EBITDA. This, despite the fact that in some countries volumes declined again due to the pressure on the agricultural sector to decrease the environmental impact. “There was no impact of an unfavourable purchasing position in the first quarter of 2020. In addition, despite the volume decrease, there was a better product mix including more specialties and fewer costs due to implemented cost saving measures,” explaines Knoop.
“Looking forward we see changing market circumstances due to Covid-19, with challenges arising for our customers, the ultimate impact of which on ForFarmers is still uncertain. We expect to realise a better underlying EBITDA in the first half-year 2020 compared to the first half of 2019, but in light of the increased uncertainties due to COVID-19, we refrain from expressing any further expectations.”