ForFarmers: Underlying EBIT Down 11.7% in the Third Quarter, Weighed Down by Transport Costs
The Dutch animal feed producer ForFarmers published a third-quarter trading update on 5 November 2026 showing a gap between margin and costs. Gross profit rose 3.6% to €159.6 million, while underlying operating expenses increased 6.8%.
This gap explains the 11.7% decline in underlying EBIT, to €22.7 million, in a quarter when total volume nevertheless grew 1.4%. The group also finalised its joint venture with KPS Food Group in Poland in early October, ahead of a Capital Markets Day scheduled for 24 November 2026.
Transport and Energy Costs Drive Down Underlying EBIT
The group attributes the increase in its underlying operating expenses mainly to higher transport costs and energy prices. Chief Executive Officer Pieter Wolleswinkel also cited low river water levels, which he said had "a considerable impact on our supply logistics".
As costs grew faster than gross profit, the improvement in the latter was not enough to protect earnings. Underlying EBITDA fell 5.4% to €36.9 million, a less pronounced decline than that of underlying EBIT.
Return on average capital employed (ROACE), which compares the underlying EBIT of the last twelve months with the average invested capital over the same period, decreased by 0.5 points to 21.5% as at 30 September 2026, compared with 22.0% as at 30 June 2026.
Volume Growth Partly Driven by Changes in Scope
The growth in activity partly relies on the expansion of the scope of consolidation. Revenue rose 1.6% compared with the third quarter of 2025, but remained virtually stable on an organic basis. Total volume increased 1.4%, including 0.7% organic growth.
Compound feed volume rose 2.3%, driven by the consolidation of Beukelaar Diervoeders and organic growth of 1.3%. Gross profit thus grew faster than revenue, rising 3.6% against 1.6%.
These rising organic volumes mark a change from the first half: in its publication of 6 August 2026, the group had reported stable volumes on a like-for-like basis. It had then attributed the growth in its gross margin to performance in the Netherlands, Germany and Poland.
KPS Joint Venture Finalised, Two Transactions Underway in Poland and the United Kingdom
For the year to date, the Chief Executive Officer stated: "Operating profitability over the first nine months is higher than in the previous financial year, which was already particularly strong." The third-quarter decline therefore follows a first part of the year that management considers more favourable.
On the external growth front, the joint venture with KPS Food Group in Poland was finalised in early October. In August, the group had indicated that this transaction, approved by the Polish competition authority, was expected to be completed in the autumn.
ForFarmers also announced during the quarter a planned acquisition of STW SA, an animal feed producer in eastern Poland, as well as the acquisition of Advanced Ruminant Nutrition, a British specialist in ruminant nutrition.
The Capital Markets Day on 24 November 2026 is expected to provide an update on strategy and financial targets, as well as details on the Polish joint venture. Full-year 2026 results will be published on 18 February 2027.
The third quarter thus shows growth in volumes and gross profit, offset by higher logistics and energy costs, at a time when the group is expanding its footprint in Poland and the United Kingdom.
