Lantmännen delivers a strong result for the first eight months of 2019
Lantmännen’s result for the first eight months, after financial items and adjusted for items affecting comparability, amounts to 1 090 MSEK – an improvement from last year’s result of 1 058 MSEK for the same period.
“Despite last year’s drought continuing to impact our result, Lantmännen continues to develop positively, and virtually all businesses except the Agriculture Sector show results that are higher than or on a level with last year. Particularly good development is seen in Lantmännen Unibake within the Food Sector, and the Swecon Business Area – both of which show historically high results,” says Per Olof Nyman, Lantmännen’s CEO and Group President.
Figures below refer to operating profit adjusted for items affecting comparability for the period of January-August. Last year’s results in parentheses.
The Agriculture Sector shows a lower result than the previous year: 104 MSEK (226). The lower result is due to the consequences of last year’s drought and subsequent small grain harvest – this effect subsides in connection with the new harvest. Demand for feed remains high.
This year’s harvest work has been facilitated by the investments made in the infrastructure for grain handling throughout Sweden. Harvest intake in August was the highest ever, and the total harvest forecast points to volumes that are 75 percent higher than last year and 10 percent higher than the five-year average. Grain quality is generally good.
The Energy Sector’s result is higher than the previous year: 167 MSEK (152). All businesses in the sector show higher results than last year. Lantmännen Agroetanol’s result is higher thanks to a higher ethanol price and an improved price relation between ethanol, feed product, and inputs. Lantmännen Aspen shows higher sales volumes in virtually all markets, not least thanks to more favorable weather than last year. Lantmännen Reppe continues to enjoy high demand for spirits, and the concentration of operations to Lidköping has, as expected, contributed positively to the result.
The Food Sector shows a result that is significantly higher than the previous year: 682 MSEK (556). Virtually all markets in Lantmännen Unibake are developing positively – sales have increased significantly in a majority of markets, and the addition of Lantmännen Unibake Australia has contributed positively. Lantmännen Cerealia shows a slightly higher result than last year, mainly thanks to cost savings and strong results in the international businesses in Russia and Ukraine.
The Swecon Business Area shows a significantly higher result than the previous year: 277 MSEK (219). Activity continues to be high in all Swecon’s markets – especially in Germany, where sales have continued to increase. The service and spare part markets continue to increase in all markets.
The Real Estate Business Area is developing according to plan, with a result – excluding capital gains – that is slightly higher than the previous year: 148 MSEK (140). A new office for parts of Lantmännen’s operations in Malmö will be built in the vicinity of Cerealia’s mill in the West Harbor.
“Lantmännen’s result for the first eight months is among the highest ever, despite the challenges that last summer’s drought has brought. The strong result once again shows that we have a solid strategy, a strong business portfolio, good relations with members and customers – and not least competent and engaged employees. We have every possibility to achieve our goal of continuing to build a world-class company and world-class Swedish farming,” says Per Olof Nyman.
The interim report is available at https://lantmannen.com/about-lantmannen/financial-information/.
Images are available at https://lantmannen.com/newsroom/press-images/.
If you have any questions, please contact:
Per Olof Nyman, CEO and Group President, Lantmännen
Phone: +46 706 57 42 47
E-mail: per.olof.nyman@lantmannen.com
Michael Sigsfors, Acting CFO, Lantmännen
Phone: +46 704 22 28 65
E-mail: michael.sigsfors@lantmannen.com
Lantmännen’s press office
Phone: +46 10 556 88 00
E-mail: press@lantmannen.com
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 October 3, 2019.
About Lantmännen
Lantmännen is an agricultural cooperative and Northern Europe’s leader in agriculture, machinery, bioenergy and food products. Owned by 25,000 Swedish farmers, we have 10,000 employees, operations in over 20 countries and an annual turnover of SEK 45 billion (approximately EUR 4.3 billion). With grain at the heart of our operations, we refine arable land resources to make farming thrive. Some of our best-known food brands are AXA, Bonjour, Kungsörnen, GoGreen, Gooh, FINN CRISP, Schulstad and Vaasan. Our company is founded on the knowledge and values acquired through generations of farmers. With research, development and operations throughout the value chain, together we take responsibility from field to fork. For more information: lantmannen.com/en.
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