FirstFarms A/S' Annual Financial Insights for 2024
FirstFarms A/S has unveiled their annual report, a snapshot of their performance for the year 2024, which reveals results that slightly missed expectations. This is a crucial moment for a company with growth ambitions as they navigate challenges that ultimately influenced their bottom line.
Key Financial Highlights
In 2024, FirstFarms recorded:
- Turnover of 454 million DKK, down from 462 million DKK in 2023.
- EBITDA increased to 105 million DKK from 101 million DKK in the prior year.
- EBIT at 43 million DKK, a decrease from 50 million DKK year-on-year.
- Net profit after tax fell to 16 million DKK from 26 million DKK in 2023.
Equity rose from 723 million DKK to 818 million DKK, thanks to the year’s results and a capital increase of 97 million DKK in the first quarter. This brings their solvency ratio to an impressive over 48% at the close of 2024.
Challenges Faced in 2024
The outcome of 2024 serves as a testament to the significant impact of extreme weather conditions on agricultural operations. Unusual weather patterns, especially a prolonged dry spell followed by heavy rainfall in Central Europe, heavily affected crop yields, with Slovakia facing some of the most severe challenges—slaughtering expectations across the board.
Despite these setbacks, FirstFarms believes their approach to risk diversification and a focus on circularity within their operations helped partially mitigate the adverse effects of Mother Nature.
Investment in Infrastructure
CEO Anders H. Nørgaard emphasized the integral role of continual investment in all their operational branches for fostering growth and diversifying risk. A notable development was the implementation of a significant irrigation system in Romania during the summer. This advancement notably enhanced local crop yield and quality.
Additionally, FirstFarms embarked on major investments across their business in 2024. In Romania, they commenced construction on a new silo system alongside expanding the irrigation infrastructure. Slovakia also witnessed significant upgrades with the introduction of the company’s first dairy facility and a renovation of milking infrastructure.
Future Outlook for 2025
With the launch of Strategy 2028, FirstFarms is optimistic about their trajectory moving into 2025. Based on both internal assessments and market expectations, they forecast an EBITDA between 115 million DKK and 155 million DKK, alongside EBIT ranging from 45 million DKK to 85 million DKK. Volatility remains a factor, yet they are preparing to navigate through varying market prices, which will play a crucial role in their profitability moving forward.
Corporate Developments and Share Offer
As part of their strategic advancements, FirstFarms announced a voluntary cash offer concerned with share acquisitions excluding treasury shares. This offer was disclosed earlier in the year and will undergo a defined evaluation process with a statement set to be released before the first half of the offer period concludes.
Best regards,
FirstFarms A/S
For more information:
Contact CEO Anders H. Nørgaard at +45 75 86 87 87.
About FirstFarms:
FirstFarms is engaged in agricultural operations with a responsible approach to surrounding communities, delivering top-quality products primarily in local markets while exploring sustainable value-creation opportunities for investors.
Frequently Asked Questions
What is FirstFarms A/S's primary business focus?
FirstFarms A/S focuses on agricultural operations with an emphasis on sustainability and local market engagement.
How did FirstFarms perform financially in 2024?
The company had a turnover of 454 million DKK and an EBITDA of 105 million DKK, but faced a decrease in profit after tax to 16 million DKK.
What were the major challenges for FirstFarms in 2024?
Extreme weather conditions, including drought followed by heavy rainfall, significantly impacted crop yields and operations.
What investments is FirstFarms making for future growth?
The company is investing in irrigation systems, silo construction, and dairy facilities to support operational efficiency and productivity.
What are FirstFarms' expectations for 2025?
FirstFarms projects an EBITDA between 115 million DKK and 155 million DKK based on Strategy 2028, navigating market price volatility.
