Continued strong result development in the first four months
Lantmännen’s result after net financial items for the first four months of 2016 amounts to 304 MSEK, compared to 238 MSEK for the same period last year. All sectors are developing well, and the higher result is a continuation of last year’s strong development. Lantmännen continues to create conditions for thriving Swedish agriculture.
”It is very pleasing to report that we continue to deliver results that are in line with the strong full-year results for 2015. Our positive momentum from last year is continuing in 2016, and we are showing a higher result in most of our businesses,” says Per Olof Nyman, Lantmännen’s CEO and Group President.
The figures below refer to the period of January-April, 2016. Last year’s result in brackets.
The Agriculture Sector has improved its operating profit significantly compared to the previous year: 94 MSEK (23 MSEK). Increased customer focus and a strong local presence has led to Lantmännen strengthening its position in the highly competitive Swedish agricultural market. The higher result is also due to major efficiency measures and structural cost reductions that have been implemented over the last two years, which have now produced full effects.
The operating profit for the Machinery Sector has increased, and amount to 11 MSEK (4 MSEK). The sector’s development is positive, despite a continued turbulent and cautious machinery market. Swecon’s market position in construction machinery has been strengthened, both in the Swedish and the German market. The agricultural machinery business has focused on preparations for the new agreement with AGCO to come into effect – and on integrating the newly acquired machinery business in Kalmar.
The Energy Sector shows a higher operating profit than last year: 84 MSEK (62 MSEK). The improvement is mainly due to higher earnings in Lantmännen Agroetanol, where the successful work with increasing ethanol with added value has continued – for example through exports to Germany, and sales of more highly-refined products. The result in the Sector’s other businesses is developing according to plan.
The Food Sector also shows a higher operating profit: 185 MSEK (137 MSEK). The improvement is mainly due to continued result improvements in primarily Lantmännen Unibake’s international operations, and to the fact that the result from Vaasan – which is part of the Sector since June of 2015 – has been added. Several successful product launches have been made during the first four months, for example from AXA, Kungsörnen and GoGreen. Viking Malt’s acquisition of Danish Malting Group from Carlsberg was approved by relevant competition authorities in May.
Lantmännen Real Estate’s operating profit, excluding property sales, is in line with the previous year: 61 MSEK (62 MSEK). The external share of leasing continues to increase, and a number of property transactions have been made during the first four months.
“Lantmännen continues to stand on a stable platform, with strong finances and a good market position in several areas – and I feel confident about the future. Our strong position means that Lantmännen can continue to make a difference, by creating conditions for thriving and competitive Swedish agriculture,” says Per Olof Nyman.
The entire report is available at lantmannen.com/en/reports.
If you have any questions, please contact:
Per Olof Nyman, CEO and Group President, Lantmännen, +46 706 57 42 47, per.olof.nyman@lantmannen.com
Ulf Zenk, CFO, Lantmännen, +46 725 61 15 63, ulf.zenk@lantmannen.com
Lantmännen’s press office, +46 730 46 58 00
This information has been disclosed in accordance with the Swedish Securities Market Act (2007:528). The information was submitted for publication at 08.30 on June 2, 2016.
