WINFARM Reports 16% Revenue Growth in H1 2023 Despite Market Pressures

Key Takeaways

1. WINFARM’s consolidated revenue for H1 2023 increased by 16.1% to €71.4 million.
2. The company has implemented measures to sustain order intake and operational margins.
3. AgroFourniture, under the Vital Concept brand, saw an 18.8% growth in revenue.
4. AgroProduction revenue decreased by 14.4% due to currency issues in certain countries.
5. WINFARM anticipates margin improvements in the second half of 2023.

WINFARM, France’s leading remote sales company for the agricultural sector, has announced its consolidated results for the first half of 2023. Despite facing downward pressure on selling prices, the company reported a 16.1% increase in consolidated revenue, amounting to €71.4 million.

Financial Performance

The company’s AgroFourniture segment, marketed under the Vital Concept brand, recorded revenue of €65.6 million, marking an 18.8% growth. This segment accounts for 92% of the company’s total semi-annual revenue. On the other hand, the AgroProduction segment, under the Alphatech brand, reported a revenue decline of 14.4% to €4.7 million.

WINFARM’s gross margin at the end of June 2023 was €22.8 million, up 11.9% compared to last year. However, the EBITDA for H1 2023 was €1.6 million, down from €2.5 million in H1 2022, impacted by increased external charges and salary costs.

Market Challenges and Strategies

The company faced challenges due to the general decline in selling prices, affecting both animal nutrition and hygiene products. WINFARM has taken immediate measures to defend its margins, such as optimizing stock selection and promoting high-margin products. These measures have resulted in a favorable volume effect, indicating an increase in the number of orders and market share gains.

Future Outlook

WINFARM expects an improvement in margins in the second half of 2023. The company plans to continue its commercial strategy focused on four key areas: competitive pricing, increasing the average basket by offering complementary products, increasing order volume, and better procurement practices.

The company also aims to enhance user experience through the new Vital Concept website and streamline operations by integrating a new ERP system.

New Initiatives

WINFARM has launched “Au Pré!”, a new brand to valorize dairy products for a network of independent farmer members. This diversification is expected to be a significant growth driver for the company.

Photo by Stephen Radford on Unsplash