Dutch cooperative Agrifirm doubles profits in 2012

Agrifirm more than doubled its profit to €21.1 million in 2012, as shown from the financial statements published by the company on March 26. In 2011, profits amounted to €10 million. This improvement is due to higher revenues and the continuous efficiency improvements made by several subsidiaries, according to the company.
The result showed a positive trend compared to 2011. The key elements that affected the result were as follows: 

• The Agrifirm Feed and Agrifirm Plant member companies achieved better results. This largely manifests in better conditions for members/customers in accordance with the agreements within the Cooperative.
• The Nuscience subsidiary (specialties, premixes, concentrates) experienced strong growth in terms of revenues and result in 2012, particularly in the Netherlands, China and Ukraine.
• Agrifirm Belgium achieved better results in its feed operations, in part due to the higher feed sales volume in metric tons.
• The disappointing results from minority interests in 2011 were turned around in 2012 and achieved a higher level.
• The subsidiaries in the co-products and services divisions in 2012 recorded lower results than in 2011.
Agrifirm's feed companies in various European countries had to devote additional attention to preventing rising accounts receivable balances. This reflects the poor financial position of many livestock farms.€13.3 million will be redistributed to members/customers. Agrifirm's higher profit has resulted in a member dividend of 0.75 percent of member sales in 2013. In total this represents an amount of approximately €7.5 million that will be distributed at the beginning of 2014. An additional €5.8 million will furthermore be distributed in customer discounts.
Successful growth in core activities
"Our focus on four core activities is bearing fruit," said Ton Loman, CEO. "In addition to compound feed, specialties and co-products for the livestock sector, this includes fertilizer and the crop protection products in the plant sector. Business units that no longer fit into our core activities are critically reviewed." In 2012, this resulted in the sale of the participating interests in Probroed & Sloot (one-day chicks), Interbroed (breeding of laying-hens) and Cefetra (raw materials).
Agrifirm aims for successful growth within its core activities. "In the Netherlands this means enlarging our market share in a shrinking market, in the livestock farming as well as in the plant sectors," said Loman. "We accomplish this through means of cost control and innovative concepts that enable members/customers to achieve better results."
Outside the Netherlands, Agrifirm is focused on organic growth and acquisitions. "We do not grow just for the sake of growth; return is a key focus," said Loman. "However, scale is also important; for example, to attract good employees and to be able to continue to responsibly hedge the increasing risks in a highly volatile raw materials market."
Investments and Acquisitions
In 2012, Agrifirm invested €53 million in its core activities. Key projects include the new factories in China (premixes, pig feeds), Germany (broiler chick feed) and the Netherlands (cereal storage in Kampen, sowing seed facility in Emmeloord and the production of liquid compound feed for cattle in Den Bosch).
In addition, the company invested in the following acquisitions: James & Son (Great Britain, co-products), Wefelnberg (Germany, co-products), Trouw Nutrition Környe Kft's (Hungary, premixes-concentrates-young animal feeds) and the mechanization equipment company HBM (the Netherlands, continued under the name Abemec Schoondijke).
The 2012 Annual Report is available here.