ForFarmers: EBIT Up by 70.8% in Q1 2026, Despite a Decline in Standalone Revenue
ForFarmers released a trading update for the first quarter of 2026 on Thursday, marked by a 9.3% growth in total volume, primarily driven by the integration of a joint venture in Germany. However, on a standalone basis, volumes remained stable and revenue recorded a contraction of 4.7%, a direct consequence of the decline in raw material prices compared to the equivalent quarter in 2025.
Acquisitions and Integration Support Volumes, but Organic Growth Fades
ForFarmers' total volume increased by 9.3% during the quarter, largely driven by the consolidation of the German joint venture. On a standalone basis, however, volumes remained roughly stable, despite the negative impact of regulations on business cessation and animal diseases on the feed mix segment, which recorded a standalone decrease of 1.1%. The total feed mix increased by 4.1%, while the group's revenue grew by 4.5%. On a standalone basis, however, revenue fell by 4.7%, entirely attributable to a less favorable raw material price environment than in the corresponding quarter of the previous year.
Profitability Advances Despite Pricing Tensions
Gross margin strengthened, with an increase of 17.2% to 161.8 million euros. Excluding consolidation effects, gross margin rose by 10.3%, signaling an improvement in cost structure or supply chain management despite raw material price pressures. Underlying EBIT saw a rise of 70.8% to reach 27.5 million euros, while underlying EBITDA stood at 41.1 million euros, up by 49.5%. The ROACE ratio (return on capital employed) based on underlying EBIT was established at 19.6% as of March 31, 2026, compared to 17.4% as of December 31, 2025, reflecting an improvement in capital efficiency.
Polish Joint Venture Awaiting Regulatory Green Light
ForFarmers' shareholders have approved entering into a joint venture with KPS in Poland. The company remains in waiting for approval from Polish competition authorities to finalize the transaction in the third quarter of 2026. CEO Pieter Wolleswinkel highlighted that despite current geopolitical uncertainties and upward pressure on raw material and energy prices, ForFarmers maintains its ability to offer its animal feeds at competitive rates through targeted risk management.
