ForFarmers reports 'stable' results despite Brexit uncertainty
31st Aug 2016 / By Alistair Driver
ForFarmers has reported ‘stable’ trading results despite an unstable EU trading environment and lower profits in the UK.
The European feed business achieved a 2.9 per cent growth in feed sales to 4.6 million tonnes in the first half of 2016, driven mainly by growth in the Netherlands, Germany and Belgium.
Revenue decreased by 4.4 per cent to €1,070.5m (£914m) due to decreasing raw material prices and the weakening of the pound on the back of Brexit-related uncertainty.
Gross profit, excluding the negative currency effect, remained ‘fairly stable’ with the positive contribution of the Netherlands, Germany and Belgium offset by decreasing profitability in the UK.
Eearnings before interest, taxes, depreciation, and amortisation (EBITDA) were up by 7.2 per cent to €46m (£39.3m), which the company attributed to the implementation of an efficiency programme and acquisitions.
ForFarmers CEO Yoram Knoop said: “Both in macro political and macroeconomic terms, the first six months of 2016 continued being restless with the Brexit as the most significant event.
“The weakening of the Pound sterling had an adverse effect on our results due to the translation of the Pound sterling into Euro.
“In these challenging circumstances we were able to improve our 'underlying EBITDA', largely through the implementation of our efficiency programme One ForFarmers.”
“ForFarmers believes in a strong future for the agricultural sector and we continue to dedicate ourselves to this fully.”