ForFarmers Reports Robust Growth in Feed Sales for Q1 2025
Feed company ForFarmers has reported significant increases in both feed sales and profits during the first quarter of 2025. The Netherlands-based company published its quarterly update, revealing growth across volume, financial revenue, and profits.
Key Growth Drivers
The impressive growth at ForFarmers is largely attributed to strategic acquisitions and partnerships. In the previous year, the company acquired the by-product firm Van Triest. Additionally, ForFarmers initiated a joint venture in Germany with Team Agrar, complementing its expansion efforts. In the UK, the company successfully completed the sale of its compound feed factory in Burston, following approval from UK competition authorities.
Feed Sales Volume Surge
The total volume of feed sold surged by 17.5% compared to the first quarter of the previous year. This growth is primarily driven by the Van Triest acquisition. Excluding this acquisition, a growth of 1.3% was still noted. Furthermore, sales of compound feed improved by 3.5%, significantly influenced by the newly established joint venture in Germany. Autonomous growth in compound feed also contributed with a 1.1% increase. While details on specific sales locations remain unspecified, ForFarmers concludes that it is gaining market share within the contracting Dutch feed market.
Financial Highlights
In terms of financial performance, revenue grew more robustly than volume, indicating a 9.1% rise to €754 million. Gross profits also saw an uptick of 11.2%, reaching €138 million. Notably, operating profit (underlying EBIT) surged by 61%. Additionally, ForFarmers experienced an increase in ROACE (Return on Average Capital Employed) from 13% to 13.8%, highlighting the company’s enhanced profitability from invested capital.
Market Dynamics and Future Outlook
While ForFarmers noted that raw material prices did not exhibit structural changes in the first quarter, there has been increased volatility attributed to ongoing geopolitical developments.
