Forfarmers Nv · EURONEXT:FFARM
Forfarmers Nv — FY2024 Earnings Presentation
26 slides from Forfarmers Nv's earnings presentation, Feb 20, 2025
Slide 1: ForFarmers Full Year Results 2024
FORFARMERS FULL YEAR RESULTS 2024 1
Slide 2: Notifications and Disclaimer
NOTIFICATIONS AND DISCLAIMER Reporting standards Important data Forward looking statements The results in this presentation are derived This presentation contains forward-looking statements, including those relating to ForFarmers legal from the ForFarmers 2024 financial 17-04-2025 General Meeting of
Slide 3: Agenda
AGENDA Key events FY 2024 - Pieter Wolleswinkel, CEO Financial results FY 2024 - Marloes Roetgerink, CFO Strategy 2030 - Pieter Wolleswinkel Questions 3
Slide 4: Strategic steps have further strengthened ForFarmers' foundation
STRATEGIC STEPS HAVE FURTHER STRENGTHENED FORFARMERS’ FOUNDATION • 2024 was an exceptionally good year: • Further strengthening of our market positions • Operational profitability has significantly increased • Strong customer focus and flexible response to the specific needs of livestock farmers • S
Slide 5: Volume growth and significant improvement in profitability
VOLUME GROWTH AND SIGNIFICANT IMPROVEMENT IN PROFITABILITY • Total volume + 7.0%; compound volume + 3.3% • On a like-for-like basis total volume was up 3.5% and compound volume +2.1% • Volumes increased in all clusters • Gross profit was up 8.6% due to higher volumes and a more effective buying and
Slide 6: ESG Ambitions and Progress 2024
ESG AMBITIONS AND PROGRESS 2024 6
Slide 7: Operational and Financial Development Netherlands/Belgium
OPERATIONAL AND FINANCIAL DEVELOPMENT (Underlying. in €m) 2024 2023 Δ% Δ l-f-l Netherlands/Belgium Total volume (in 4,407 4,213 4.6% 4.3% kT) Total volume increased by 4.6% (like-for-like 4.3%) Gross profit 254.4 244.0 4.3% 7.1% Operating • Compound feed volume also increased expenses 213.0 218.0 -2
Slide 8: Operational and Financial Development Germany/Poland
OPERATIONAL AND FINANCIAL DEVELOPMENT (Underlying in €m) 2024 2023 Δ% Δ l-f-l Germany/Poland Total volume (in 2,231 1,944 14.8% 0.5% kT) Total volume increased, mainly as a result of acquisition of Piast Gross profit 128.1 106.5 20.3% 1.1% Operating • Milestone of 1 million tonnes feed in Poland exp
Slide 9: Operational and Financial Development United Kingdom
OPERATIONAL AND FINANCIAL (Underlying. in €m) 2024 2023 Δ% Δ l-f-l DEVELOPMENT Total volume (in kT) 2,383 2,272 4.9% 4.9% United Kingdom 135.3 Gross profit 126.3 7.1% 4.3% Total volume increased by 4.9% Operating expenses 128.6 126.9 1.3% -1.3% • Good performance in ruminants EBITDA 22.3 12.4 79.8%
Slide 10: Agenda
AGENDA Key events FY 2024 - Pieter Wolleswinkel, CEO Financial results FY 2024 - Marloes Roetgerink, CFO Strategy 2030 - Pieter Wolleswinkel Questions 10
Slide 11: Higher volumes and significant improvement profitability
HIGHER VOLUMES AND SIGNIFICANT IMPROVEMENT PROFITABILITY (in €m unless indicated otherwise) FY 2024 FY 2023 Δ% Δ like-for-like Comments Total volume (in mT) 9.0 8.4 7.0% 3.5% Total volumes up due to acquisition of Piast and Van Triest; Like-for-like also increased, to which all clusters contributed
Slide 12: Strong development underlying profit and ROACE
STRONG DEVELOPMENT UNDERLYING PROFIT AND ROACE (in €m unless indicated otherwise) FY 2024 FY 2023 Comments Underlying EBIT 59.1 32.7 Underlying net financing result -7.5 -7.3 Share of profit of equity-accounted investees, net of tax 3.2 5.2 Mainly HaBeMa Underlying income tax expenses -11.5 -5.1 Und
Slide 13: Alternative Performance Measures
ALTERNATIVE PERFORMANCE MEASURES (in €m) FY 2024 FY 2023 Comments On EBITDA level: Includes projects in various countries related to restructuring of the organisation. In Restructuring costs -1.1 -7.2 2024 mainly in the UK In 2024, one-off gains related to the acquisition of Piast, the sale of two l
Slide 14: Solid Capital Structure
SOLID CAPITAL STRUCTURE (in €m) 31-12-2024 31-12-2023 Comments Total Assets 942.1 840.8 Acquisition of Piast and Van Triest Equity 338.3 320.4 Addition of group profit minus dividend payment Solvency ratio 35.9% 38.1% Net working capital 25.4 1.9 Increase mainly as a result of the acquisition of Pia
Slide 15: Net Cash Flow Development
NET CASH FLOW DEVELOPMENT (in €m) FY 2024 FY 2023 Comments Increase in working capital. In 2023 positive impact from strong decrease raw From operating activities 70.2 86.5 material prices From investing activities -78.3 -7.2 As a result of the acquisitions in 2024 and divestment in 2023 From financ
Slide 16: Agenda
AGENDA Key events FY 2024 - Pieter Wolleswinkel, CEO Financial results FY 2024 - Marloes Roetgerink, CFO Strategy 2030 - Pieter Wolleswinkel Questions 16
Slide 17: Most important steps from Strategy 2022 – 2025
MOST IMPORTANT STEPS FROM STRATEGY 2022 – 2025 • Our mission “For the Future of Farming” is central given public debate • Organisation decentralised to better align with the local markets and to be able to act faster • Growth potential improved by divestment Belgian compound feed activities and acqu
Slide 18: Trends towards 2030 remain in line with previous years
TRENDS TOWARDS 2030 REMAIN IN LINE WITH PREVIOUS YEARS • Agrifood sector will continue to become more sustainable • Volatility of raw material and energy prices remains • Consolidation and professionalisation of farmers and chain parties continues • Labour market remains tight and on-farm data manag
Slide 19: ForFarmers' strategic principles continue to be leading
FORFARMERS’ STRATEGIC PRINCIPLES CONTINUE TO BE LEADING Our mission For the Future of Farming is the starting point Supported by: • ESG ambitions underwritten by local action plans • PROUD: ForFarmers’ core values • Strategic principles within which new priorities are formulated 19
Slide 20: ForFarmers Strategic Principles 2030
FORFARMERS STRATEGIC PRINCIPLES 2030 Landelijke productie- On farm data Alternatieve Leghennen integratie Close to the farmer Differentiate in products Good feed at a Inkoopstrategie Sustainable solutions (Virtual) chain dekking in Polen management & markets competitive price eiwitontwikkeling in Du
Slide 21: Execution Strategy 2030 Examples
EXECUTION STRATEGY 2030 Examples Close to the farmer Differentiate in products Good feed at a Sustainable solutions (Virtual) chain & markets competitive price integration Nationwide production On-farm data Procurement excellence Alternative protein Layer integration footprint in Poland management d
Slide 22: M&A agenda to support our strategic ambition
M&A AGENDA TO SUPPORT OUR STRATEGIC AMBITION • In addition to autonomous development, our M&A strategy will support growth and sustainability to ensure a future-proof business model • ForFarmers has sufficient financial capacity • Our five strategic principles guide M&A development in our current co
Slide 23: Guidance Strategy 2030
GUIDANCE STRATEGY 2030 KPI ESG Progression on 2030 objectives compared to base year 2022 ROACE on EBIT ROACE of at least 10% to enable growth, investments and dividend Dividend 40-60% of underlying net profit attributable to shareholders of the Company The pay-out ratio depends on the strategic inve
Slide 24: Our Agenda 2025
OUR AGENDA 2025 • Full focus on ambition to continue gaining market share in challenging markets • Complete investments in capacity expansion in Poland • Implementation of ForFarmers team agrar joint venture in Germany • Strengthen Reudink's position in organic feed in Germany • Continued attention
Slide 25: Agenda
AGENDA Key events FY 2024 - Pieter Wolleswinkel, CEO Financial results FY 2024 - Marloes Roetgerink, CFO Strategy 2030 - Pieter Wolleswinkel Questions 25
Slide 26: For the Future of Farming
FOR THE FUTURE OF FARMING ange