FirstFarms A/S Seizes Opportunity for Financial Aid
FirstFarms A/S is poised to apply for a significant financial subsidy designed for investments in livestock and to mitigate costs stemming from the recent outbreak of foot and mouth disease at one of its farms. The outbreak, identified in Slovakia, led to the culling of over 3,500 animals, prompting the company to reevaluate its financial outlook.
Details on the Regional Subsidy
The available subsidy offers FirstFarms the chance to address various costs incurred due to the disease. These include the destruction of products and the purchase of new animals. The financial support is projected to be between 40-55 million DKK, with an initial impact of around 10 million DKK on profit expected in 2025. Full disbursement of the subsidy is anticipated to occur within the same year.
Positive Expectations
As noted by Chairman of the Board, Asbjørn Børsting, the management is optimistic about the outcome of the subsidy application. The conditions attached to this subsidy require that a corresponding animal herd must be maintained for five years, which may lead to a delayed initial impact on the company's profitability. Nonetheless, the significant component of this subsidy relates to the purchase of animals, which will be recognized as income once the necessary conditions are fulfilled.
Revised Financial Projections for 2025
With the revitalization of production beginning in 2025 and the potential for recognizing subsidies as income during that year, FirstFarms has confidently adjusted its financial expectations. Initially, projections in March necessitated a downward revision due to the foot and mouth outbreak. However, with the encouragement of the subsidy, the company now expects the following results for 2025:
Projected Financial Outcomes
- An EBITDA ranging from 85 to 125 million DKK, a rise from the previous forecast of 70 to 110 million DKK.
- An EBIT between 15 and 55 million DKK, up from earlier estimates of 0 to 40 million DKK.
These new targets reflect a significant shift in confidence as the company prepares for future growth.
Company Contact Information
For anyone seeking further insights into FirstFarms’ operations or the current financial strategies being implemented, reaching out directly is encouraged. Co-CEO Michael Hyldgaard is available for inquiries at +45 75 86 87 87, and more information can be found on their official website, www.firstfarms.com.
About FirstFarms A/S
FirstFarms A/S is a publicly listed company on the Copenhagen stock exchange, identified by the ticker FFARMS. The company's commitment extends beyond just financial gain; FirstFarms operates with a strong sense of responsibility towards local communities, consistently delivering high-quality products. By focusing on sustainable practices, they continuously seek innovative opportunities to create value for investors and contribute positively to their operating environment.
Frequently Asked Questions
What is the purpose of the regional subsidy for FirstFarms?
The subsidy aims to assist FirstFarms with costs related to livestock purchase and losses from the outbreak of foot and mouth disease.
How many animals were affected by the foot and mouth disease outbreak?
Over 3,500 animals were culled due to the outbreak at FirstFarms' facilities.
What are the revised EBITDA and EBIT expectations for 2025?
The company projects an EBITDA of 85-125 million DKK and an EBIT of 15-55 million DKK for the year 2025.
When is the full subsidy expected to be disbursed?
Full disbursement of the subsidy is anticipated to occur in 2025.
How can investors and interested parties learn more about FirstFarms?
More information can be obtained by visiting their official website or contacting Co-CEO Michael Hyldgaard directly.
