FirstFarms (FFARMS) Q4 2025 earnings summary

Executive summary

• 2025 was marked by a severe outbreak of foot and mouth disease (FMD) in Slovakia, leading to culling of the main dairy herd and significant operational disruption.

• Revenue fell 17% year-over-year to 379 mDKK, with EBITDA at 79 mDKK and EBIT at 13 mDKK, both well below initial guidance.

• The company’s financial foundation remains solid, supported by land value increases and successful insurance and subsidy claims related to FMD.

• New management was appointed, and strategic focus shifted to rebuilding the Slovakian dairy herd and restoring production.

Financial highlights

• Net turnover: 379 mDKK (down from 454 mDKK in 2024).

• EBITDA: 79 mDKK (down from 105 mDKK in 2024); EBIT: 13 mDKK (down from 43 mDKK).

• Net profit: -21 mDKK (2024: 16 mDKK).

• Gross margin: 50.9% (2024: 47.9%).

• Cash flow from operating activities: 17 mDKK (2024: 47 mDKK).

• Net interest-bearing debt increased to 613 mDKK (2024: 551 mDKK).

• Equity ratio improved to 51.5% (2024: 48.6%).

Outlook and guidance

• 2026 guidance: revenue growth, EBITDA of 60–110 mDKK, EBIT of -10 to +40 mDKK.

• Milk production in Slovakia expected to reach pre-FMD herd size in H2 2026, with yield recovery into 2027.

• Focus on efficiency, cost control, and sustainability initiatives, with continued investment in irrigation and land acquisition.