ForFarmers N.V. Achieves Strong Growth in Q3 2024
ForFarmers N.V. has reported an impressive trading update for the third quarter of 2024, demonstrating significant volume growth and robust profitability. CEO Pieter Wolleswinkel expressed satisfaction over the company’s performance, noting that the momentum established in the first half of the year has successfully carried through to this quarter.
Wolleswinkel stated, “Our ambition to continue gaining market share was reflected in significant volume growth of 6%. Operational profitability has once again improved strongly, driven in part by the market-oriented approach, using our scale and knowledge. This result is due to the hard work of our employees.”
Strategic Initiatives Enhancing Market Position
Throughout the last quarter, ForFarmers has taken several strategic steps that further strengthen its position in the market. A notable highlight is the establishment of a joint venture with team agrar, aimed at enhancing service delivery in the German market. This initiative demonstrates ForFarmers' commitment to expanding its footprint and better catering to local needs.
Acquisition of Van Triest
The successful acquisition of Van Triest Veevoeders marks a significant milestone for ForFarmers, completed earlier this quarter. This acquisition is expected to bolster the company’s ability to provide circular raw materials, aligning with its sustainability goals. Furthermore, integrating the workforce of Van Triest will enhance operational capabilities, enabling ForFarmers to serve its customers more effectively.
Key Highlights from Q3 2024
- Total volume saw an increase of 6.1% compared to the same period last year. Compound feed volume also experienced solid growth of 2.8%. On a like-for-like basis, volume growth maintains a consistent trend at 4.3% overall.
- Turnover witnessed a slight decrease of 4.5%, largely attributed to falling raw material prices, which have affected the industry at large.
- The company's operational profitability reflected a strong upward trend, with underlying EBIT rising by 48.9% and underlying EBITDA increasing by 28.2%. These improvements were driven by enhanced gross margins and effective cost management.
- ForFarmers achieved an increase in the ROACE ratio on underlying EBIT, moving from 10.7% as of June 30, 2024, to 11.6% by the end of September 2024.
Commitment to Sustainable Farming
As it moves forward, ForFarmers is proudly committed to communicating sharpened sustainability ambitions set for 2030. This initiative aims to contribute towards a future-proof agricultural sector, reinforcing the company’s mission to support farmers in productive and responsible farming practices.
Continuous Growth and Future Outlook
With a clear target for the future, ForFarmers is determined to continue providing value to its stakeholders while focusing on sustainable practices. The integration of knowledge, advisement, and innovative support is central to its strategy as a leader in the animal feed industry. Having reported sales of around 8.4 million tonnes of animal feed, and boasting a workforce of approximately 2,600, ForFarmers is undeniably a key player across Europe.
The company’s production operations span multiple countries, including the Netherlands, Germany, Poland, and the UK, showcasing its expansive presence within and beyond Europe. In 2023, ForFarmers achieved a remarkable turnover of nearly €3 billion, solidifying its economic stature.
Contact Information:
For further inquiries, please contact Floor van Maaren at floor.vanmaaren@forfarmers.eu or call +31 (0)573 28 88 00.
Frequently Asked Questions
What were ForFarmers' volume growth figures in Q3 2024?
ForFarmers saw a total volume increase of 6.1% compared to Q3 2023, driven by strong demand and effective market strategies.
How did the acquisition of Van Triest aid ForFarmers?
The acquisition strengthened ForFarmers' position in co-products and enhanced its share of circular raw materials, supporting its sustainability commitments.
What kind of strategic steps did ForFarmers take recently?
Recently, ForFarmers announced a joint venture with team agrar to enhance its presence in the German market, focusing on localized service improvements.
What is ForFarmers' commitment towards sustainability?
ForFarmers is committed to sharpened sustainability ambitions aimed for 2030, contributing to future-proof agricultural practices.
Where does ForFarmers operate?
ForFarmers operates in multiple countries, including the Netherlands, Germany, Poland, and the UK, and exports to various international markets.
