FDBusiness.com

Lantmännen, the Nordic region’s leader in agriculture, machinery, bio-energy and food products, increased net sales by 10%, including organic growth of 7%, to SEK48.52 billion (€4.60 billion) in 2019. Operating income was SEK1.98 billion – up from SEK1.44 billion in 2018 – with the largest earnings improvements achieved in the Swedish group’s Food Sector.

Per Olof Nyman, chief executive and group president of Lantmännen, comments: “Lantmännen’s result for 2019 is the highest ever. All Sectors and Business Areas improved their earnings during the year and we have advanced our positions in most areas of operation. Although the beginning of the year was marked by the difficult situation after the 2018 drought and heatwave, the large and good quality harvest in 2019 contributed to a strong recovery of earnings within the Agriculture Sector.”

Per Olof Nyman.

He adds: “This year’s strong result means that Lantmännen’s proposed dividend of SEK730 million is record high, which is very gratifying after a period that has been challenging for many of our members.”

Lantmännen’s Food Sector increased net sales by 10% to SE16.867 billion, mainly due to a continuing increase in sales within Lantmännen Unibake. Like-for-like operating income was SEK1.018 billion– the Food Sector’s highest ever result.

Lantmännen Unibake’s sales and profitability increased in virtually all markets. The major investments made in the new bakeries in Poland and Belgium are progressing according to plan, as are operations in the acquired bakery business in Melbourne, Australia, purchased at the start of 2019. During the year, Lantmännen Cerealia carried out an extensive improvement program, which has now started to produce the intended effects in the form of improved productivity and lower cost levels.

Per Olof Nyman continues: “The last few years have been Lantmännen’s most successful of all time, and I would venture to say that we as a company are in a stronger position than ever before. We will continue to focus on further strengthening our positions in the market: among other things, through continued investments in infrastructure, product and service development, and research and development in all areas of activity. In this way, we continue the work on our long-term ambition to drive development of farming of the future – and to continue helping to create a world-class Swedish agriculture.”