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Lantmännen: announces second third 2017 results

Stockholm / SE. (lg) Lantmännen’s result after net financial items, and adjusted for items affecting comparability, for the year’s first eight months amounts to MSEK 1’112 – compared to MSEK 1’021 for the same period the previous year.

«All of Lantmännen’s sectors show a stable development, and several initiatives are ongoing that will further strengthen the company’s competitiveness and profitability. Lantmännen’s result development continues to be strong, and the conditions for delivering a high refund and supplementary payment also for 2017 are good», says Per Olof Nyman, Lantmännen’s CEO and Group President.

All figures below refer to operating profit for the period of January-August 2017, adjusted for items affecting comparability. Last year’s results in brackets.

The Agriculture Sector continues to develop positively, and shows an operating profit on a par with the previous year: MSEK 259 (250). This year’s harvest work has been very intensive, due to a concentrated harvest and reception period. The Sector’s international holdings show a result that is slightly higher than the previous year. On June 1, the acquisition of Finnish K-maatalous was finalized; the operation is currently undergoing a name change to Lantmännen Agro Oy.

The strong sales development in the Machinery Sector continues from the start of the year, in both Lantmännen Maskin and Swecon. The Sector’s operating profit amounts to MSEK 209 (158). Lantmännen has a continued strong presence in the Swedish tractor market, and Swecon a continued strong position in both Sweden and Germany.

The Energy Sector has improved its operating profit compared to last year, to MSEK 244 (225). The result improvement is mainly driven by a stronger result in Lantmännen Agroetanol, which has continued its successful exports of climate-friendly ethanol. Lantmännen Reppe experiences continued strong demand, while Lantmännen Aspen is facing fiercer competition in the Nordic markets.

The Food Sector’s operating profit is slightly lower than the previous year: MSEK 504 (576). Lantmännen Cerealia continues to invest in innovation and brands, and extensive work is ongoing to sharpen the organization, improve cost and production efficiency, and build an organizational platform for profitable growth. Lantmännen Unibake continues to develop in a stable way, and has increased its sales during the second four-month period. Several investment projects are ongoing, in – for example – Belgium, Poland, and Russia. In Finland, the work with improving bakery infrastructure efficiency is developing well, with a continued strong delivery to customers.

Lantmännen Real Estate continues its stable development, and shows a result, excluding property sales, of MSEK 139 (121). In August, Lantmännen along with real estate company Hemsö created a joint venture, which will be focusing on development and management of community properties.

Lantmännen’s total result has been impacted by four items affecting comparability: an insurance reimbursement for Lantmännen Unibake’s bakery in Londerzeel (plus 96 MSEK); capital gain in Lantmännen Real Estate (plus 78 MSEK); a provision regarding Lantmännen Agroetanol (minus 140 MSEK) – and structural costs in Lantmännen Cerealia (minus 34 MSEK). The net total of items affecting comparability for the period of January-August amounts to zero.

«I would like to thank everyone that has so far participated in our ongoing Owner Dialogue, which will be the foundation of updating Lantmännen’s long-term strategy. We have had several interesting meetings during spring and summer, and I look forward to continued discussions and input from our owners. Together we continue to develop Lantmännen into an even stronger company for the future», says Per Olof Nyman.