Strong Financial Performance in Challenging Times
FirstFarms A/S has reported a pre-tax profit of 7 mDKK for the first half of 2025, a noteworthy result given the challenges it faced, including a severe outbreak of foot and mouth disease (FMD). Despite the setbacks, favorable weather conditions contributed positively to crop growing conditions and higher market prices for cattle. These factors have helped mitigate the adverse impacts of the FMD outbreak on the company's operations.
Financial Overview: Key Figures
During the first half of 2025, FirstFarms achieved impressive financial metrics despite a decline in performance compared to 2024. Key highlights include:
- Turnover: 192 mDKK (down from 220 mDKK in 2024)
- EBITDA: 54 mDKK (compared to 65 mDKK in 2024)
- EBIT: 22 mDKK (down from 35 mDKK in 2024)
- Result before tax: 7 mDKK (a decrease from 18 mDKK in 2024)
The decrease in these key financial indicators can be attributed significantly to losses from the FMD outbreak at its Slovak farm in Plavecky Stvrtok. This incident is expected to impact operations throughout 2025 and into 2026, temporarily halting the construction of the dairy project associated with milk production.
Handling the Foot and Mouth Disease Outbreak
The challenges posed by FMD have been considerable, with 3,521 animals affected and culled in the outbreak's wake. FirstFarms has worked actively on a comprehensive cleaning and sanitation strategy at the impacted sites. Recently, Slovak authorities have conducted mandatory disinfections, establishing a pathway toward resuming operations.
The company anticipates reintroducing 40 test cows on the farm, which will undergo extensive testing for FMD over the coming weeks. Should these test cows show no signs of the disease, the path will be cleared to resume regular milk production as soon as Q4 of this year.
Future Expectations Despite Adversity
In light of the FMD outbreak, FirstFarms has adjusted its expectations for the fiscal year, initially lowering its profit forecast by 45 mDKK. However, in positive news, the company has recently qualified for regional subsidies aimed at offsetting the costs incurred due to the disease outbreak, expecting about 40-55 mDKK in support, of which 10 mDKK may impact this year's financial results.
Looking ahead, FirstFarms aims for:
- EBITDA in the range of 85-125 mDKK
- EBIT between 15-55 mDKK
Commitment to Sustainable Practices
FirstFarms remains devoted to the full re-establishment of its milk production capabilities and enhancing operational procedures to achieve increased efficiency and sustainability. Co-CEOs Michael Hyldgaard and Søren Bredvig have expressed confidence in the company's ability to recover quickly, with proactive measures already in place for herd reestablishment and continuous development across all operating units.
A Look Ahead
The commitment to sustainability and innovation is paramount to FirstFarms’ strategy. As they navigate through and eventually overcome the challenges presented by FMD, the focus will be on improving productivity without compromising environmental ethics or community responsibility.
Best regards,
FirstFarms A/S
Frequently Asked Questions
What were the main financial results for FirstFarms A/S in H1 2025?
FirstFarms A/S reported a pre-tax profit of 7 mDKK, with a turnover of 192 mDKK and an EBITDA of 54 mDKK in the first half of 2025.
How has the FMD outbreak affected FirstFarms A/S?
The FMD outbreak resulted in the culling of 3,521 animals, impacting the company’s operations and financial performance, leading to adjusted expectations for the year.
What are the expectations for FirstFarms A/S in 2025?
The company expects an EBITDA range of 85-125 mDKK and EBIT between 15-55 mDKK for the fiscal year 2025, despite challenges posed by FMD.
When does FirstFarms A/S anticipate resuming milk production?
FirstFarms expects to resume milk production in Plavecky Stvrtok during Q4 of 2025, pending negative FMD test results from their test cows.
What steps is FirstFarms A/S taking for sustainability?
FirstFarms is committed to improving operational efficiency while ensuring sustainable practices are followed in all aspects of production and community engagement.
