Stockholm / SE. (lg) The result of Sweden’s Lantmännen Group for 2023, after net financial items and adjusted for items affecting comparability, amounted to 2’462 MSEK (million Swedish Krona) – a slight decline compared to the previous year’s record result of 2’536 MSEK.
«Despite an unsettled geopolitical situation and a weaker economy, Lantmännen delivered a strong result for 2023. In particular, the Energy Sector, Swecon Business Area and our international businesses in Lantmännen Unibake reported very good results for the year, while the Swedish food operations had a much tougher time,» says Group President and CEO Magnus Kagevik.
The figures below refer to operating income adjusted for items affecting comparability.
Agriculture: The Agriculture Sector’s result amounted to 477 MSEK (2022: 516). The result has decreased in the international interest holdings and in the sector’s Swedish operations, which were hit hard by the weak harvest during the second half of the year. The result in the Finnish agricultural operations increased.
Energy: The Energy Sector reported a result of 968 MSEK (2022: 1’165). The lower result is due to a lower average ethanol price compared to last year’s very high levels. The price drop in ethanol has partly been compensated by a decline in raw material price. Aspen and Scandbio continue to develop positively.
Food Sector: The Food Sector’s result amounted to 730 MSEK (2022: 528), entirely due to higher earnings in Lantmännen Unibake’s international businesses. The result in the Swedish food operations is significantly lower than the previous year. The higher inflation and rising interest rates has led to a shift in consumer behavior, with a stronger focus on discount products.
- Unibake and Cerealia in 3. Tertial 2023: The Food Sector’s net sales for the third four-month period were slightly up on the previous year, driven by inflation and a weaker Swedish Krona than in the previous year. Adjusted operating income fell to MSEK 97 (177), largely as a result of low sales volumes and weaker earnings for the Swedish operations.
- The shift in consumer behavior in the face of higher global inflation continued in the final four-month period – as evidenced by generally lower demand and an increased focus on discount products. The Swedish operations in particular continue to face challenges in the form of lower demand and fierce competition from private labels.
- Lantmännen Unibake’s operating income was lower than in the previous year, mainly due to lower sales volumes. Focused work on production efficiency improvement has had a positive impact on the result.
- Unibake’s new fully automated cold storage facility in Örebro was inaugurated in November. The new facility is closer to major customers and will reduce the need for transport, which will in turn have a positive climate impact through reduced emissions.
- Lantmännen Cerealia’s operating income was lower than in the previous year, mainly due to lower sales volumes to business customers and continuing fierce competition from private labels. An improvement program is in progress aimed at strengthening the profitability of the business.
- Unibake and Cerealia in 12M-2023: Net sales for FY-2023 were significantly higher than in 2022, driven by high inflation and a weak Swedish currency. Adjusted operating income improved to MSEK 730 (528), entirely due to higher earnings for Lantmännen Unibake’s international operations.
- (Table Food Sector: Lantmännen Group)
Swecon: The Swecon Business Area delivered a new record result: 669 MSEK (2022: 593). Sales were higher for both new and used machines. The increase in sales was primarily driven by more heavy machines, but also by price increases and currency effects. Demand fell steadily during the year, and the market remains cautious and unpredictable.
Real Estate: The Real Estate Business Area’s result amounted to 251 MSEK (2022: 249). Both the rental business and work on property development progressed well during the year.
Lantmännen’s Board of Directors proposes a total dividend of 1’200 MSEK (2022: 1’080). The dividend consists of refund and supplementary payment of 2,0 percent (2,0) on trading with Lantmännen Agriculture Sweden (excluding the fuel business); of 0,5 percent (0,5) for the fuel business – and refund of 0,0 percent (0,5) on purchases from Lantmännen Machinery’s and Swecon’s Swedish operations. In total, refund and supplementary payment amounts to 324 MSEK (374). In addition, the board proposes a contribution dividend of 10 percent (10) on the nominal value of the contributions, totaling 453 MSEK (403), as well as a contribution issue of 423 MSEK (303). The board also proposes a dividend of 8,0 percent (6,0) on subordinated debentures.
«It is gratifying that Lantmännen’s businesses have delivered very good results during the year, and that the board thereby once again can propose a record dividend totaling 1,2 billion SEK. That is an important contribution that strengthens the companies after this year’s weak harvest result and considering the higher interest rates,» says Per Lindahl, Chairman of the Board of Directors.
«Even if Lantmännen’s full-year result is a signal of strength, we also saw a clear decline in several markets during the last four-month period in 2023. In the period ahead, it is crucial to handle those challenges. At the same time, Lantmännen remains in a stable financial position, giving us opportunities to invest for the future. Combined with our engaged members and strong organization, that provides us with strong opportunities to continue building a world-class company,» says Magnus Kagevik.
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