Animal feeder firm ForFarmers Q3 EBITDA falls as costs rise

Overview

• Netherlands animal feed producer's Q3 volumes and turnover grew modestly yr/yr

• Gross profit rose 3.6% but underlying EBITDA fell 5.4% due to higher costs

• Company expanded with acquisitions in Poland and UK and finalized Polish joint venture

Outlook

• ForFarmers to update strategy and financial objectives at 24 Nov Capital Markets Day

• Company did not provide specific financial guidance for the current or future periods

Result Drivers

• VOLUME GROWTH - Co said total and compound feed volumes increased in Q3

• HIGHER COSTS - Co said operating expenses rose due to higher fuel and energy prices

• ACQUISITIONS AND JV - Co said recent acquisitions in Poland and UK and a new joint venture in Poland contributed to market position

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "strong buy"

• The average consensus recommendation for the fishing & farming peer group is "buy."

• Wall Street's median 12-month price target for ForFarmers NV is €7.75, about 33.9% above its November 4 closing price of €5.79

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)