FirstFarms (FFARMS) Q3 2025 earnings summary

Executive summary

• Interim result for Q1–Q3 2025 shows a pre-tax loss of -5 mDKK, with Q3 alone at -12 mDKK, mainly due to low crop and pig prices and the impact of foot and mouth disease (FMD) on milk production.

• Turnover decreased by 13% year-over-year to 284 mDKK, reflecting lower sales of milk and reduced pig prices.

• FMD outbreak in Slovakia led to culling of cattle, loss of milk revenue, and operating losses totaling 45 mDKK year-to-date.

• Silo capacity in Romania doubled to 46,000 tonnes, and dairy construction in Slovakia is progressing as planned.

Financial highlights

• Turnover: 284 mDKK (2024: 327 mDKK); EBITDA: 72 mDKK (2024: 86 mDKK); EBIT: 21 mDKK (2024: 41 mDKK); pre-tax result: -5 mDKK (2024: 13 mDKK).

• Net profit for Q1–Q3 2025: -6.4 mDKK (2024: 9.6 mDKK).

• Gross margin improved to 55.6% (2024: 50.7%), but operating margin fell to 7.3% (2024: 12.5%).

• Cash flow from operating activities: -28.6 mDKK (2024: 24.7 mDKK); total cash flow: -135.9 mDKK (2024: 129.8 mDKK).

• Equity increased to 912.7 mDKK, mainly due to bond conversion.

Outlook and guidance

• 2025 EBITDA expected at 60–90 mDKK and EBIT at -10 to +20 mDKK, maintaining the latest guidance.

• Pig and crop prices are assumed to increase slightly for the remainder of 2025.

• Milk production expected to return to pre-FMD levels in H2 2026.

• Insurance payout of 31 mDKK for herd loss, with 60% received by Q3; additional regional subsidies of 50–60 mDKK expected, 10–15 mDKK to impact 2025 earnings.