FirstFarms (FFARMS) Q1 2025 earnings summary

Executive summary

• Q1 2025 results fell below expectations due to low pig prices, reduced value adjustments, one-off costs, and a major foot and mouth disease (FMD) outbreak at the largest cattle farm in Slovakia.

• FMD led to a downward adjustment of annual result expectations by 45 mDKK and will impact operations for the rest of 2025 and beyond.

• Major construction projects in Romania and Slovakia were paused or delayed due to the FMD outbreak.

• Equity increased by 84 mDKK following a bond conversion in March 2025.

Financial highlights

• Q1 2025 turnover was 102 mDKK, nearly flat year-over-year (Q1 2024: 104 mDKK).

• EBITDA dropped to 12 mDKK from 36 mDKK, and EBIT fell to -4 mDKK from 22 mDKK year-over-year.

• Result before tax was -14 mDKK, down from 13 mDKK in Q1 2024.

• Gross margin decreased to 36.9% (Q1 2024: 58.4%), and EBITDA margin to 11.5% (Q1 2024: 35.0%).

• Earnings per share was -1.35 DKK (Q1 2024: 1.09 DKK).

Outlook and guidance

• 2025 EBITDA expected at 70-110 mDKK and EBIT at 0-40 mDKK, reflecting the FMD impact.

• No adjustments for potential regional, national, or EU support related to FMD have been included.

• Focus remains on re-establishing milk production, with first animals expected to return to barns in Slovakia by November 2025; full recovery may take up to two years.

• Pig and crop production expected to remain solid, with stable crop prices anticipated.