The ForFarmers group of feed manufacturing businesses has reported increased profitability from lower revenues in full year 2024, with the domestic operation moving from loss to profit after a reorganisation.
ForFarmers UK has reported underlying full year earnings before interest and tax of €8.1million on revenues of €722.8m in the year ended December 31st 2024, compared to a €0.5m loss on £747.2m in the previous year. The business’ total feed volume was 2.38 million tonnes in the period, a 4.9% increase on the prior year’s 2.27m tonnes.
Profitability was driven by the higher volumes and by operating close to the market. At the same time, underlying operating expenses were slightly lower, despite high inflation, following the business reorganisation. “Combined with higher gross profit, this translates into a strong increase in underlying operating profitability,” notes the company.
The increased feed volume was mainly due to a good performance in the ruminant sector, helped by higher milk prices and the company’s policy of responding to the specific needs of farmer customers. ForFarmers also benefited from temporary contracts to toll manufacture pig and poultry feed for third parties in the period.
The UK reorganisation saw the Radstock feed mill in Somerset sold to 2Agriculture in late December, with the Burston mill in Norfolk also due to go to the same buyer later this year.
The ForFarmers Group, with activities in the Netherlands, Germany and Poland as well as the UK, reported a 2024 EBIT of €55.4m on revenues of €2.75 billion, from the €4.6m and €2.97bn in 2023. Total feed volume was 9.02m tonnes, including 6.06m tonnes of compounds, from the 8.43m tonnes including 5.87m tonnes of compounds in 2023.
The latest year saw the group continue to decentralise, in order to align better with its local markets and act faster. Growth potential was improved by the divestment of compound feed manufacture in Belgium and the acquisition of the Piast business in Poland, as well as an increase in co-product capacity through the acquisition of Van Triest.
Total volume is up 7.0% year-on year and compound volume 3.3% higher. On a like-for-like basis, accounting for the company’s exit from the Belgian compound market and acquisitions in the period, total volume increased by 3.5% and compounds by 2.1%.
ForFarmers believes the next five years will see more pressure for the agrifood sector to become more sustainable. The trend for more consolidation and professionalisation of farmers and supply chain businesses will continue. The company expects raw material and energy prices to remain volatile, and for the labour market to remain tight. The on-farm data management capability will also continue to evolve.
“With solid volume growth and significant improvement in profitability, 2024 was an exceptionally good year for ForFarmers,” says chief executive Pieter Wolleswinkel. “We further strengthened our market positions by maintaining a strong customer focus and responding flexibly to the specific needs of livestock farmers across different markets. This approach, combined with a continuous focus on cost awareness, contributed significantly to profitability.
“Favourable external factors, such as limited impact from animal diseases, also had a positive impact compared to 2023. We took important strategic steps that increased our position in growing and attractive markets. In Poland, for example, we strengthened our market position with the acquisition and successful integration of Piast and are investing in further future growth. With the acquisition of Van Triest Veevoeders, we expanded our position in co-products, contributing to more sustainable feed solutions with a higher share of circular raw materials.
“The joint venture announced with team agrar lays the foundation for a solid long-term position in the German market. With Reudink’s recent acquisition of a compound feed plant in West Germany, we have further expanded our capacity to produce organic feed. These steps, alongside our SBTi-validated sustainability ambitions, have further strengthened ForFarmers’ foundation.”