FirstFarms (FFARMS) Q3 2024 earnings summary

Executive summary

• Interim result for Jan–Sep 2024 is unsatisfactory but aligns with expectations due to extreme weather impacts; EBITDA increased, but other key figures declined year-over-year.

• Strategic initiatives under the 2028 growth plan have begun, with benefits expected to materialize in 2025.

• Focus remains on efficiency, productivity, and circularity, with sustainability and digitalization as ongoing priorities.

Financial highlights

• Turnover for Jan–Sep 2024 was 327 mDKK, down 5% from 345 mDKK in 2023, mainly due to challenging crop conditions and lower milk production.

• EBITDA rose to 86 mDKK (2023: 79 mDKK); EBIT was 41 mDKK (2023: 42 mDKK); pre-tax profit dropped to 13 mDKK (2023: 28 mDKK).

• Net financial items were a cost of 28 mDKK, up from 14 mDKK last year, mainly due to higher debt and lower hedging income.

• Net profit for Jan–Sep 2024 was 9.6 mDKK, down from 23.3 mDKK in 2023.

• Cash flow from operations was 25 mDKK (2023: 48 mDKK); total cash flow positive at 130 mDKK due to capital increase and financing activities.

Outlook and guidance

• 2024 EBITDA expected at 90–100 mDKK and EBIT at 30–40 mDKK, narrowing previous guidance.

• Crop prices anticipated to rise slightly through year-end; milk prices stable; pig prices expected to remain at current levels.

• Long-term targets for 2028: annual turnover of 750 mDKK and EBITDA of 240 mDKK.