FirstFarms (FFARMS) Q4 2024 earnings summary

Executive summary

• Revenue decreased 2% to 454 mDKK in 2024, with EBITDA at 105 mDKK and net profit at 16 mDKK, below original expectations due to extreme weather impacts on crops.

• Strategy 2028 was launched, targeting 750 mDKK revenue and >240 mDKK EBITDA by 2028, with focus on growth, sustainability, and operational efficiency.

• Major investments included a new dairy in Slovakia, expanded irrigation and silo capacity in Romania, and a capital injection of 186 mDKK from Heartland Group.

• Sustainability initiatives advanced, including solar energy expansion, biodiversity projects, and a Farm Sustainability Plan.

Financial highlights

• Net turnover: 454 mDKK (2023: 461.6 mDKK); EBITDA: 105 mDKK (2023: 101 mDKK); EBIT: 43 mDKK (2023: 50 mDKK); Net profit: 16 mDKK (2023: 26 mDKK).

• Gross margin: 47.9%; EBITDA margin: 23.2%; Operating margin: 9.5%; Return on equity: 2.2%.

• Net interest-bearing debt reduced to 551 mDKK; solvency ratio at 48.6%.

• Cash flow from operations: 47 mDKK (2023: 104 mDKK); total cash flow: 112 mDKK.

• No dividend proposed for 2024.

Outlook and guidance

• 2025 guidance: revenue growth of at least 10%, EBITDA 115–155 mDKK, EBIT 45–85 mDKK.

• Key 2025 initiatives: dairy production launch, further irrigation and silo expansion, leadership development, and continued sustainability focus.

• Strategy 2028 aims for 750 mDKK turnover and >240 mDKK EBITDA, with organic growth and acquisitions.