ForFarmers N.V.: ForFarmers announces revised Strategy 2025
17 Novembre 2022 - 7:00AM
ForFarmers N.V.: ForFarmers announces revised Strategy 2025
Lochem, 17 November 2022
ForFarmers announces revised Strategy
2025
In order to be better able to respond to rapidly changing market
conditions ForFarmers has taken a fresh look at the basic
principles of its Strategy 2025. This review has resulted in five
more focused strategic principles whereby the emphasis is on an
even more local market approach, differentiation and
sustainability-focused innovation of feed concepts. ForFarmers aims
for a consolidated return on average capital employed (ROACE) of at
least 10% based on underlying operating profit (EBIT) by
2025.
Since the launch of the strategy in 2020 the emphasis on making
the agricultural sector more sustainable has grown, partly due to
the accelerated proposal and implementation of measures under the
EU Green Deal. In addition, prices of raw materials and energy have
increased and become even more volatile, also as a result of the
war in Ukraine. This has made it more difficult to pass on
fluctuations in raw material prices. At the same time the current
market conditions call for more consolidation and cooperation in
the supply chain, from feed manufacturer to retailer.
Five more focused strategic principlesForFarmers has the
knowledge, expertise and resources to strengthen its position amid
the changing market conditions. Its mission, For the Future of
Farming, continues to be the guiding principle through which the
company is fully focused on a sustainable livestock farming
industry, both ecologically and economically. In anticipation of
the strategy review, ForFarmers last year adjusted the way it
works, assigning more responsibility to the local management teams.
This provides the foundation for meeting the first principle of the
revised strategy: the local teams are leading, to enable ForFarmers
to work even more closely to the customer. The teams are supported
by the central departments and draw on the knowledge and experience
that is present within the group, for example in the area of
innovation. The organisation will be adapted to this way of
working. Secondly, in the current market conditions ForFarmers is
uniquely well placed to distinguish itself in each individual
market and segment in providing a differentiated offering, driven
by the local situation of each sector. The offering can range from
total solutions to optimise returns, to supplying specific products
that best meet the livestock farmer’s needs amid challenging market
conditions. Thirdly, ForFarmers will focus more emphatically
on sustainable solutions which address wider societal issues such
as the use of alternative raw materials, circularity and further
reducing nitrogen and other emissions. In this context ForFarmers
will intensify its efforts aimed at cooperation between the supply
chain parties in the various markets. This cooperation is important
both ecologically and economically and constitutes the fourth
principle. Finally, ForFarmers will remain true to the – fifth –
principle, which is to supply good feed at competitive prices that
contribute to business profitability for both ForFarmers and its
customers. For this, ForFarmers continues to focus on optimally
efficient and effective business processes.
Mergers and acquisitions: strengthening and broadening In
order to strengthen or broaden selective positions in home markets
as well as to enter new markets with added growth potential,
ForFarmers is looking for opportunities for mergers with or
acquisitions of candidates that are a good cultural fit (in terms
of both country and business). Transition to further
sustainabilityThe livestock farming industry is faced with the
challenge of feeding an ever-growing number of people while at the
same time reducing the impact that the production of animal
proteins has on the climate and on nature. In its Strategy 2025,
reflected in the third and fourth principle, ForFarmers is
therefore giving the Going Circular sustainability agenda an extra
boost. Accordingly, in order to create even more focus, a new
organisation is formed that includes the activities of Reudink
(organic feed) and the co-products to develop and market concepts
that address societal concerns regarding matters such as climate,
animal welfare and former food stuffs. We will start with this in
the Netherlands. Examples include concepts which use alternative
raw materials or incorporate more moist co-products and residual
flows from the food industry. Concepts such as these are an
essential factor in establishing collaborative partnerships in the
supply chain, from feed company to retailer. Such concepts are also
crucial to livestock farmers and other stakeholders in pursuing the
current trend towards net zero.
#ProudtobeForFarmersAs part of the strategy review we
have adjusted our core values. The success of the strategy is
largely dependent on the attitude and efforts of employees and
management. Our values Passionate, Responsible,
Open-minded, United and Delivering are more
than just words to ForFarmers; they provide a concrete guideline
for our daily interactions with customers, chain partners,
stakeholders – and each other.
Financial objective With this revised strategy ForFarmers
aims for a consolidated return on average capital employed (ROACE)
of at least 10% based on underlying operating profit (EBIT) by
2025, barring unforeseen events. The company will refrain from
making statements about (annual) targets for the development of
underlying EBITDA in view of the changing markets, in which
important policy decisions are still forthcoming, as well as the
continuing geopolitical and macroeconomic uncertainties. The
dividend policy will remain unchanged and is aimed at distributing
a cash dividend of between 40% and 60% of underlying net
profit.
This press release contains information that qualifies as inside
information in the sense of Article 7 paragraph 1 of the EU Market
Abuse Regulation. Note to the editor / For further
information:Caroline Vogelzang, Director of Investor Relations
T: 0031 573 288 000 M: 0031 6 10 94 91 61E:
caroline.vogelzang@forfarmers.eu Additional information on
Strategy 2025 ForFarmers will today provide additional
information on its revised Strategy 2025 to those invited,
including analysts. The relevant presentation will be available on
the company website from 10 am CET (www.forfarmersgroup.eu). The
audio recording of the explanatory session will also be posted on
the site later today.
About ForFarmers N.V.ForFarmers N.V. is an international
organisation that provides complete, innovative feed solutions to
the livestock farming industry. With its For the Future of
Farming mission ForFarmers is committed both to the continuity
of farming and to further increasing the sustainability of the
agricultural sector. ForFarmers is the market leader in Europe with
annual sales of around 10 million tonnes of animal feed and is
active in the Netherlands, Germany, Belgium, Poland and the United
Kingdom. ForFarmers has around 2,500 employees and in 2021
generated revenue of approximately €2.7 billion. ForFarmers N.V. is
listed on Euronext Amsterdam.ForFarmers N.V., P.O. Box 91, 7240 AB
Lochem, The Netherlands. T: +31 (0)573 28 88 00,
info@forfarmers.eu, www.forfarmersgroup.eu
FORWARD-LOOKING STATEMENTSThis press release contains
forward-looking statements, for example relating to ForFarmers’
legal obligations in terms of capital and liquidity positions in
certain specified scenarios. In addition forward-looking statements
may, without limitation, contain phrases such as “intends to”,
"expects”, “takes into account”, "is aimed at”, ''plans to”,
"estimates" and/or words of a similar meaning. These statements
pertain to or may affect matters in the future, such as ForFarmers’
future financial results, business plans and current strategies.
Forward-looking statements are subject to a number of risks and
uncertainties which may lead to material differences between the
actual results and performance and the expected future results or
performance as implicitly or explicitly contained in the
forward-looking statements. Factors that may result in, or
contribute to, deviations from current expectations include, but
are not limited to developments in legislation, technology,
taxation, jurisprudence and regulations, share price fluctuations,
legal proceedings, investigations by regulatory bodies, the
competitive landscape and general economic conditions. These and
other factors, risks and uncertainties that may affect any
forward-looking statements or the actual results of ForFarmers are
discussed in the most recently published annual report. The
forward-looking statements in this press release relate solely to
statements as of the date of this document and ForFarmers accepts
no obligation or responsibility whatsoever to update the
forward-looking statements contained in this release, regardless of
whether these pertain to new information, future events or
otherwise, unless ForFarmers is legally obliged to do so.
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