Strong result for Lantmännen in first four-month period
Lantmännen’s result after net financial items for the first four months of 2019 amounts to 335 MSEK – an increase compared with last year’s result of 293 MSEK for the same period. The effects of last summer’s drought continue to impact several of Lantmännen’s operations.
”The start of 2019 once again shows the strength and stability of Lantmännen’s broad business portfolio. Even if the agricultural operations have met challenges following the warm and dry summer, virtually all other businesses continue to develop positively,” says Per Olof Nyman, Lantmännen’s CEO and Group President.
The figures below refer to operating profit/loss for the period of January-April. Last year’s result in parenthesis.
The Agriculture Sector shows a lower result than the previous year: -28 MSEK (67), which is due to the consequences of last year’s low grain harvest. The cost of supplying the industrial operations with grain has increased due to Sweden becoming a grain importer. Demand for feed remains very high. Investments in improved infrastructure for grain handling continue, and a new grain facility in a port location was inaugurated in May in Hargshamn, Uppland.
The Energy Sector’s result is higher than last year: 52 MSEK (38). Lantmännen Agroetanol’s result is higher than the previous year thanks to a significantly higher ethanol price in the first months of the year, as well as an improved price relation between ethanol, feed products and inputs. Lantmännen Aspen and Lantmännen Reppe both show higher results than the previous year as well.
The Food Sector shows a result that is significantly higher than the previous year: 239 MSEK (157). Lantmännen Cerealia has improved its result mainly due to a strong development in the international businesses in Russia, Ukraina, and on the export markets. Lantmännen Unibake continues to develop positively, and has increased its sales markedly from last year. The main growth is in frozen bread.
The Swecon Business Area shows a significantly higher result than last year: 139 MSEK (88). Activity is high on all Swecon’s markets – especially in Germany, where demand has increased further. The service and spare parts markets continue to increase in all geographies.
The Real Estate Business Area is developing according to plan, with a result excluding property sales in line with the previous year: 71 MSEK (74).
“Lantmännen continues to develop well: profitability in most areas has continued to increase, and we see great opportunities for further profitable growth in virtually all businesses. The situation in the lead-up to the coming harvest is difficult to assess, but obviously we hope for a large harvest with good quality. By maintaining the strong partnership between Lantmännen and our members, we have everything in place to continue the positive development,” says Per Olof Nyman.
The interim report is attached to this mail, and is also available at https://lantmannen.com/en/financialinformation.
Images are available at https://lantmannen.com/en/press-and-publications.
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 May 29, 2019.
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.