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Company update: ForFarmers 2011

After the record year of 2010 Netherlands based For Farmers Group (ForFarmers) achieved another milestone in 2011 with the sale of almost 2.5 million tonnes of compound feeds. Turnover increased with 25.5% to €5.2 billion partly caused by the increase in price of raw materials. Net profit in 2011 was €21.9 million.

Besides the increase in turnover as a result of higher prices ForFarmers also achieved an increase of 7% in sale of feeds. Turnover in 2011 was €5.22 billion, an increase of 25.5% compared with the €4.16 billion turnover in 2010.
 
The feed maker achieved a net profit of €21.9 million (including an administrative profit on the sale of real estate of €0.5 million). In 2010 profit was €40.5 million, pumped up with €8.5 million through the sale of participation shares in Royal Cebeco Group.
 
The halving of the profit was mainly the result of poor performance of raw material trading subsidiary Cefetra, of which ForFarmers is 57.7% shareholder.
 
In 2011 Cefetra traded almost 19.6 million tonnes of raw materials, including supply to ForFarmers. This still is an increase in volume of 3.5% compared with 2010, however the net result was only €1.4 million and that is a decrease with almost 90% compared to €12.8 million profit of 2010. This poor result was mainly the cause for the profit decline of the whole group for 2011.
 
The unpredictable raw material markets and other macro-economic developments, such as the financial crisis, the developments in the Arabian countries and the earthquake in Japan, were of main negative influence on the grain trading activities.
 
The management suggests to distribute €6.4 million or €0.061 per share (€0.09 in 2010). Members of the cooperative FromFarmers, who own 87.6% of ForFarmers, will receive €5.4 million. The remaining €1 million goes to the other owners: employees and external parties.

Dick Ziggers

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