ForFarmers animal feed company reports profit growth
Feed company ForFarmers sold more feed and made more profit in the first quarter of this year. The company, based in the Netherlands, reported this in a quarterly update. Both volume, financial revenue, and profit increased.
The growth at ForFarmers is mainly due to acquisitions and partnerships. Last year, ForFarmers acquired the by-product company Van Triest. This year, a joint venture was launched in Germany with the German company Team Agrar. In the United Kingdom, the sale of the compound feed factory in Burston has been completed, following approval by the UK competition authorities.
Feed sales volume growth
The total volume of feed sold increased by 17.5% compared to the first quarter of last year, mainly due to the acquisition of Van Triest. Discounting the acquisition… a growth of 1.3% remains. Sales of compound feed rose by 3.5%, mainly thanks to the aforementioned joint venture in Germany. There was also autonomous growth in compound feed, with a 1.1% increase. It is not specified where exactly this volume was sold – whether within or outside the Netherlands. However, ForFarmers concludes that it is gaining market share in the shrinking Dutch feed market.
Higher revenue and profit
Financial revenue increased even more than volume. This grew by 9.1% to €754 million. Gross profit was 11.2% higher, reaching €138 million. Operating profit (underlying EBIT) increased by 61%. The so-called ROACE (Return on Average Capital Employed) increased from 13% to 13.8%. This is a metric ForFarmers uses to assess the profitability of the invested capital over the past period.
Market volatility and future outlook
According to ForFarmers, raw material prices did not structurally change in the first quarter, but volatility has increased due to geopolitical developments.
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