FirstFarms A/S' Annual report 2023: The foundation for strong growth in place
March 21 2024 - 4:24AM
UK Regulatory
FirstFarms A/S' Annual report 2023: The foundation for strong
growth in place
FirstFarms A/S achieves the second-best
operating result (EBITDA) since the listing on the stock exchange
in 2006. The foundation for strong growth and fulfilment of the
2028 strategy is in place with a satisfactory 2023 result and a
capital injection at the beginning of 2024.
FirstFarms has in 2023 realised:
- A turnover of 462
mDKK (2022: 418
mDKK)
- An EBITDA of 101
mDKK (2022: 147
mDKK)
- An EBIT of 50
mDKK (2022:
96 mDKK)
- A result after tax of 26
mDKK (2022: 65
mDKK)
Equity has increased from 683 mDKK to 723 mDKK.
The total strengthening of the capital amounts to 40 mDKK. The
group will thus end up with a solvency ratio of 48% at the end of
2023.
The Board of Directors and Management of
FirstFarms A/S have today reviewed and adopted the annual report
for 2023.
FirstFarms expects to initiate a share buyback
of up to 105,000 shares to cover the warrant program. Pursuant to
authorisation, the share buyback was approved at the company's
ordinary general meeting on 25 April 2023.
2023 offered difficult market conditions. A
combination of high milk and pig prices as well as a stable,
efficient and circular operation, ensures however that FirstFarms
delivers a result within the range of the announced expectations
and achieves an increase in turnover of 10%.
"Risk spreading in both operations and geography
has become our positive trademark and is again an important factor
in our ability to deliver positive results. Risk spreading is part
of our DNA and gives us the resilience that is necessary," says CEO
Anders H. Nørgaard.
High level of activity
2023 offered a wide range of activities - for example:
- Two new pig productions in Hungary
were taken into use and are now operating at 100 percent
- Establishment of large irrigation
system in Romania – ready for use now
- Setting up solar panels on several
production units
- Continued investigations into the
possibility of starting biogas production
- Strategy development and
organisational adjustments
- ESG measures, e.g. mapping of
greenhouse gas emissions and development of sustainability plans
for the individual production units.
"After many months of thorough work, we were
able to present our ambitious new strategy at the end of the year;
"Strategy 2028", which will ensure our continued journey of growth.
At the same time, we made a number of organisational changes and
implemented a new broad distribution of responsibilities and tasks,
which means that the organisation is scaling up and ready for the
upcoming growth task, says Anders H. Nørgaard.
Expectations for 2024: Profit-wise
progress
Based on the ambition to grow FirstFarms over the next five years,
the group expects to deliver higher turnover and a better result in
2024 compared to 2023. An EBITDA of 110 - 140 mDKK and an EBIT of
50 - 80 mDKK are expected compared to a realised EBITDA of 101 mDKK
and an EBIT of 50 mDKK in 2023.
"If we are to achieve our goal in 2024, we must
be "best in class" in our efficiency and ability to fully utilise
the production capacity we have. We must focus all the way down to
the detail on reducing our costs per produced unit. Here we are
well assisted by our circular way of thinking," says Anders H.
Nørgaard.
The focus will be on creating the most value
possible in the circular operation and the value chains around
FirstFarms' products.
Work towards a more sustainable agriculture is
being intensified and the transition to green energy will continue
in 2024. Among other things, there is a focus on increasing the
Group's own integrated production of renewable energy. The goal is
to improve energy efficiency and become as energy self-sufficient
as possible.
Well equipped for growth
On 29 February 2024, FirstFarms could announce a capital injection
of 186 mDKK from the Heartland group. The added funds are intended
for development and growth.
With Heartland's entry into an already strong circle of owners,
FirstFarms is extremely well equipped to execute on "Strategy
2028". FirstFarms' 2028 goal is to increase the group's revenue to
750 mDKK and EBITDA to 240 mDKK.
FirstFarms will develop into one of Europe's
best operated and most profitable companies within agriculture and
food products.
FirstFarms’ annual report can be seen in its
full length in the attached file.
Best regards,
FirstFarms A/S
For further information:
Please visit our website www.firstfarms.com
or contact CEO Anders H. Nørgaard on phone +45 75 86 87
87.
About FirstFarms:
FirstFarms is a Danish stock exchange listed company. We
operate FirstFarms with responsibility for the surrounding
communities, and we deliver highest quality which is primarily sold
locally. We act on new opportunities, that create value for our
investors and for the surroundings. Every day, we work on creating
a more sustainable company.
- (5) FirstFarms Annual report 2023
- Annual report 2023_PDF version
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