FirstFarms (FFARMS) Q2 2024 earnings summary

Executive summary

• Revenue increased by 8% year-over-year to 220 mDKK in H1 2024, driven by higher piglet sales from new Hungarian operations.

• Animal production performed well, but crop production was challenged by low prices and limited rainfall, leading to a downward revision of full-year guidance by 20 mDKK.

• The company maintains a strong financial foundation and liquidity position.

Financial highlights

• H1 2024 revenue: 219.7 mDKK (H1 2023: 203.1 mDKK).

• EBITDA: 65.0 mDKK (H1 2023: 66.6 mDKK); EBIT: 35.3 mDKK (H1 2023: 42.3 mDKK).

• Net income: 14.0 mDKK (H1 2023: 31.4 mDKK).

• Net financial expenses increased to 17 mDKK (H1 2023: 4 mDKK), mainly due to higher net interest-bearing debt.

• Cash flow from operations: 17.5 mDKK (H1 2023: 74.0 mDKK), impacted by lower subsidies and crop sales.

Outlook and guidance

• EBITDA guidance for 2024 revised down to 90–120 mDKK (previously 110–140 mDKK); EBIT to 30–60 mDKK (previously 50–80 mDKK).

• Expecting rising crop prices for the remainder of 2024, with pig and milk prices stable at current levels.

• Long-term targets: annual revenue of 750 mDKK and EBITDA of at least 240 mDKK by 2028.