SFPI Group

With sales back to 2019 levels and operating margins substantially higher (+470bp to 7.7%), we have allowed for a 2021 bound to be an excellent harvest. While headwinds might crop up in 2022, notably on input costs, the jury is still out so that 2022 margins have been raised as well.

The DCF benefits from a stronger than expected spot net cash position and from the upgrades to near-term earnings and FCF generation. A proportion of these upgrades is derived from a more efficient cost base so that it may resist likely future swings in demand.