Continued stable development in Lantmännen
Lantmännen’s result for the first four months of 2021, after net financial items and adjusted for items affecting comparability, amounts to 480 MSEK – a result on a par with last year’s result of 447 MSEK for the same period.
”Lantmännen continues its stable development, despite continued impact from the coronavirus pandemic, and delivers a strong financial result for the first four-month period. All businesses have continued to do a very good job with adapting operations to the current conditions – for example through cost reductions, adaptations to production, and new business offerings,” says Per Olof Nyman, Lantmännen’s Group President and CEO.
The effects of the coronavirus pandemic are estimated to have impacted the group’s result negatively by some 100 MSEK (the corresponding impact last year was 150 MSEK). The figures below refer to operating profit adjusted for items affecting comparability. Last year’s results are in parantheses.
The Agriculture Sector shows a result in line with the previous year: 107 MSEK (104). Virtually all of the sector’s businesses deliver a result in line with, or higher than, last year. Conditions for this year’s harvest vary throughout the country; heavy rainfall in some parts of Sweden have led to difficult soil conditions, and in central Sweden there have been some winter crop losses.
The Energy Sector’s result amounts to 92 MSEK (134). The lower result is primarily due to higher grain prices, which impacts the profitability of Lantmännen Biorefineries. Work has been done to compensate for the higher commodity prices, and production is generally running well in all businesses. A larger strategic investment in gluten production is being made next to the Norrköping bio-energy combine.
The Food Sector’s result amounts to 177 MSEK (190). The foodservice business remains under pressure from the coronavirus pandemic in several markets, and thorough work has been done to reduce costs and adapt production to this situation since the start of the pandemic. Following a lower rate of investments during last year, investments are now being made in several countries. Lantmännen has expanded its cooperation with Svenskmärkning: during the second quarter, more products from Kungsörnen, Axa, GoGreen and Korvbrödsbagarn will be labelled with the ‘From Sweden’ label.
The Swecon Business Area delivers a result higher than the previous year: 153 MSEK (123). The business area continues to deliver on a high level, despite a declining total market and reduced supply of machines during the pandemic. Demand for used machines, spare parts and service has continued to increase.
The Real Estate Business Area Real shows a result, excluding capital gains, of 100 MSEK (80). The business area’s larger projects – including construction of a new office and housing in Malmö – proceed according to plan.
”The last year has been challenging in many ways, and we aren’t through the global pandemic yet. Our main priorities remain: to protect our people, protect our businesses – and take our social responsibility. With more people being vaccinated, we are getting closer to a more normal situation, and as the global economy recovers, it is important to take advantage of the opportunities that exist. I look forward to an exciting continuation of 2021 and, despite the continued impact of the pandemic, I have high expectations for Lantmännen’s development during the year,” says Per Olof Nyman.
Please find the full interim report attached, or at www.lantmannen.com/financial-information/.
Images are available at www.lantmannen.com/press-images/.
If you have any questions, please contact:
Per Olof Nyman, CEO and Group President, Lantmännen
Christian Johansson, CFO, Lantmännen
Lantmännen’s press office
Phone: +46 10 556 88 00
This information is information that Lantmännen ek för is required to disclose under the EU Market Abuse Regulation. The information was submitted by the above contact persons for publication at 08:00 CET on June 2, 2021.
Lantmännen is an agricultural cooperative and Northern Europe’s leader in agriculture, machinery, bioenergy and food products. Owned by 19,000 Swedish farmers, we have 10,000 employees, operations in over 20 countries and an annual turnover of SEK 45 billion. With grain as our basis, we create value from farmland resources to make farming thrive. Some of our best-known food brands are AXA, Bonjour, Kungsörnen, GoGreen, Gooh, FINN CRISP, Korvbrödsbagarn and Hatting. Our company is founded on knowledge and values built up through generations of owners. Having research, development and operations throughout the value chain means that we can take responsibility together – from field to fork. Read more at lantmannen.com.