Key Takeaways:
- With a stable organic change, WINFARM’s Q3 2023 revenue increased by 3% year-over-year.
- Nine-month revenue saw an 11.5% increase, with organic growth remaining stable.
- Under the Vital Concept brand, Farming Supplies contributed significantly to the revenue with a 14% increase.
- Farming Production faced a downturn, particularly in Middle Eastern markets.
- Other activities, including consulting and Agritech services, saw a substantial rise of 35.7%.
- EBITDA margin is projected to improve in the second half of 2023.
Stabilizing Sales Prices Aids in Revenue Uptick
WINFARM, the leading French remote seller of farming goods and services, has announced a revenue increase for the third quarter of 2023. After declining sales prices, particularly in the nutrition and hygiene sectors, the company has seen a return to normalcy in the third quarter, contributing to a consolidated revenue of €35.0 million. This marks a 3% increase compared to the same quarter in the previous year and maintains stability when adjusted for constant scope.
Year-to-Date Performance Shows Resilience
The company’s performance over the first nine months is also positive, with consolidated revenue reaching €106.3 million, an 11.5% rise compared to the same period in 2022. Despite a challenging price effect that impacted the market by approximately 20%, WINFARM’s constant scope sales remained stable, indicating the company’s ability to gain new market share.
Farming Supplies Lead Revenue Growth
The Farming Supplies sector, which represents 91% of WINFARM’s revenue as of September 30, 2023, showed a robust increase. Marketed under the Vital Concept brand, this sector’s revenue climbed to €96.9 million, marking a 14.0% growth, with a like-for-like increase of 1.0%. This growth includes an €11.1 million contribution from the recently integrated Kabelis Group companies. BTN de Haas, a Dutch acquisition from July 2021, continues demonstrating strong performance and successful integration within WINFARM.
Challenges in Farming Production
The Farming Production business, however, experienced a decline, with revenue dropping by 15.8% to €7.6 million at the end of September 2023. Despite early signs of recovery, sales in the Middle East remained weak, prompting WINFARM to shift its focus towards more profitable and stable markets in Europe and Asia.
Other Activities See Significant Increase
WINFARM’s “Other activities,” which encompass consulting, training services under the Agritech brand, and the operations of the Bel-Orient pilot farm, enjoyed a significant sales increase of 35.7%. This diversification into services indicates a strategic move to broaden the company’s revenue streams.
Positive Outlook for EBITDA Margin
The company has implemented financial discipline measures in the first half of the year, which, along with favorable market trends, are expected to lead to an improved EBITDA margin in the second half of 2023. Looking ahead, WINFARM remains confident in achieving its 2025 revenue targets of approximately €200 million and an EBITDA margin of around 6.5%.
Photo by Thibaut Marquis on UnsplashÂ
