Stable development for Lantmännen in the first third of 2018
Lantmännen’s result after net financial items for the first four-month period amounts to 293 MSEK, compared to last year’s result of 354 MSEK. The lower result is entirely due to a lower ethanol price.
”The start of 2018 has seen a continuation of Lantmännen’s positive development in recent years. Earnings for the first four-month period have been negatively affected by a significantly lower ethanol price, but apart from this, our businesses continue to develop according to plan,” says Per Olof Nyman, Lantmännen’s CEO and Group President.
The figures below refer to operating profit for the period of January-April, 2018. Last year’s results are shown in parentheses.
The Agriculture Sector continues to develop positively, and shows a result of 67 MSEK (64). Last year’s late harvest, combined with the cold and long winter, has led to hectic spring planting and a very intense April for Lantmännen Lantbruk. Lantmännen Maskin, which is part of the Sector since the turn of year, had a strong sales development in the period, and has improved its result from last year. In May, Lantmännen announced the upcoming acquisition of Raisio’s cattle feed business in Finland, which strengthens the offering within the Finnish business and enables synergies with the Swedish agribusiness.
The Energy Sector’s result amounts to 38 MSEK (144). The lower result is due to a sharp fall in ethanol price beginning in the last four-month period of 2017. The integration of the French alkylate petrol producer Marline, which was acquired by Lantmännen Aspen at the end of 2017, is proceeding well and planned synergy effects have been realized.
The Food Sector is showing stable development, and a result on a par with the previous year: 157 MSEK (154). Lantmännen Cerealia continues its work with cost efficiency, and has strengthened its market position within several segments compared to last year. Lantmännen Unibake has increased both its sales and result compared to the previous year, notably through continued success in Finland and Russia.
The Swecon Business Area, which is an independent business area within Lantmännen since the turn of the year, continues to develop positively, with maintained high market shares in all its markets. The result for the first four-month period amounts to 88 MSEK (66). Delivered volumes and order intakes continue to be strong.
The Real Estate Business Area shows a result, excluding property sales, slightly higher than the previous year: 74 MSEK (70) – primarily due to increased new leasing.
In the 2018 Sustainable Brand Index survey, Lantmännen was named Sweden’s most sustainable brand in the food category, and the third most sustainable brand overall. Lantmännen’s brand GoGreen placed in tenth place total, and third place in the food category – where also brands Kungsörnen and Axa placed in the top ten.
“We have started 2018 well, and I look forward to a positive development during the rest of the year. During the spring and summer, work is carried out to update Lantmännen’s long-term strategy, which focuses on the coming 10-15 years. Our assignment – to contribute to profitability on our owners farms – is still the basis for the strategy, and our basic strategic targets remain. Among other things, the updated strategy places further focus on digitalization, research & development, and innovation – all important parts for securing long-term development and profitability,” says Per Olof Nyman.
The interim report is available at https://lantmannen.com/en/financialinformation.
Images are available at https://lantmannen.com/en/press-and-publications/press-images/.
If you have any questions, please contact:
Per Olof Nyman, CEO and Group President, Lantmännen
Phone: +46 706 57 42 47
Ulf Zenk, CFO, Lantmännen
Phone: +46 725 61 15 63
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 1, 2018.
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 EUR 4 billion (SEK 40 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.