Lantmännen: announced first third 2018 results

Stockholm / SE. (lg) Lantmännen’s result after net financial items for the first four-month period amounts to 293 million SEK, compared to last year’s result of 354 million SEK. The lower result is entirely due to a lower ethanol price, the Group said in June.

«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 million SEK (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 million SEK (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 million SEK (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 million SEK (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 million SEK (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 to 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 in a statement in June.

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