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2016-08-26

ForFarmers N.V.: Increasing operating profit first half year of 2016 through Total Feed approach and efficiency programme One ForFarmers

Lochem, 26 August 2016
Increasing operating profit first half year of 2016 through Total Feed
approach and efficiency programme One ForFarmers

Highlights first half year of 2016*:

* Volume of Total Feed increased by 2.9% to 4.6 million tonnes mainly driven
by growth in the Netherlands and Germany/Belgium
* Revenue decreased by 4.4% to €1,070.5 million, due to decreasing raw
material prices that were passed on and the devaluation of the Pound
sterling, partly compensated by acquisitions
* Gross profit - excluding the negative currency effect - remained fairly
stable based on a positive contribution of the Netherlands and
Germany/Belgium and a decrease in the United Kingdom
* EBITDA** increased by 7.2% to €46.0 million: the result of cost reductions,
following further implementation of the efficiency programme One
ForFarmers, and of acquisitions. EBITDA excluding incidental items grew by
8.2% to €46.3 million
* The transition from the trading platform (for depositary receipts) to the
listing of the ForFarmers shares (FFARM) on the stock exchange EURONEXT
Amsterdam (24 May) proceeded successfully
* In July the acquisition of Vleuten-Steijn in the Netherlands was announced
as a result of which the position of ForFarmers in the swine section will
be further strengthened. The acquisition is pending approval of the
competition authorities.

(*) Results first six months of 2016 are compared to the first six months of
2015

(**) Operating result excluding depreciations and amortisation

Yoram Knoop, CEO ForFarmers:

'In the first half year farmers were still facing challenges due to continuing pressure on prices for milk, meat and eggs. By focusing on improving the returns on farm with our Total Feed approach, the volume of feed that farmers bought from us has increased. The acquisition that we made in the United Kingdom last year also contributed to our result. Both in macro political and macroeconomic terms, the first six months of 2016 continued being restless with the Brexit as the most significant event. The weakening of the Pound sterling had an adverse effect on our results due to the translation of the Pound sterling into Euro. In these challenging circumstances we were able to improve our 'underlying EBITDA'*, largely through the implementation of our efficiency programme One ForFarmers. These results and the fact that we announced an important acquisition in the Netherlands after balance sheet date, are fully in line with our Horizon 2020 strategy.
The fact that our depositary receipts could previously already be traded via the trading platform was instrumental for the smooth transition to EURONEXT Amsterdam. ForFarmers believes in a strong future for the agricultural sector and we continue to dedicate ourselves to this fully. With that we mean the continuity of the farm, but also the future in a broader sense: a healthy future for the sector and for sustainable food manufacturing as a whole. We do this in close collaboration with our customers, for a better return at the farm, a healthier livestock and a higher
efficiency. Our specialised and expert advisors offer Total Feed solutions on the basis of specific advice. We want to propagate this message even more powerfully and that is why we now launch our mission 'For the Future of Farming'. Everything that we do, we do, because we believe in it. That is good for the farmer and therefore for all stakeholders', says Yoram Knoop,
CEO of ForFarmers.

* 'Underlying EBITDA' is the operating result before depreciations and
amortisation (EBITDA) excluding incidental items.

Please find attached pdf for the full press release
Press release HY report 2016 ForFarmers NV
http://hugin.info/171963/R/2037444/759179.pdf

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This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: ForFarmers N.V. via Globenewswire

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