”The result for the first eight months is strong, despite continued impact from the coronavirus pandemic. The general demand in the markets is increasing as restrictions are lifted in more and more countries, and several of Lantmännen’s businesses are once again showing healthy growth,” says Per Olof Nyman, Lantmännen’s Group President and CEO.
Accumulated net sales, excluding currency translation effects, have increased by 2,1 percent. All operations except the Swecon Business Area show organic sales growth.
This year’s Swedish harvest is lower than the average for the last five years, and grain quality is generally lower – primarily due to rainfall in several areas. The global harvest follows a similar pattern, which has led to a sharp rise in grain world market prices – which impacts several of Lantmännen’s businesses during this harvest year.
The figures below refer to operating profit adjusted for items affecting comparability. Last year’s result in parenthesis.
The Agriculture Sector shows a lower result than the previous year: 292 MSEK (339). The lower result is mainly due to higher raw material prices and lower grain volumes. The Finnish agricultural operations continue their positive development, although this year’s harvest is the weakest in a long time. Lantmännen Maskin has increased its earnings compared to last year, and there is good underlying demand in the market.
The Energy Sector’s result amounts to 246 MSEK (380). The average ethanol price has been slightly lower than previously, and higher grain prices has had a significant impact on the result in Lantmännen Biorefineries’ operations. However, production is running well in all businesses and the strategic investments in heat-treated oats and gluten are progressing.
The Food Sector has improved its result: 590 MSEK (504). Foodservice sales remain lower than before the pandemic, but have improved compared to the previous year. Demand has begun to increase during the second four-month period, as restrictions are lifted.
The Swecon Business Area’s result is lower than the previous year: 234 MSEK (262). The supply of machinery has decreased during the pandemic, due to component shortages and problems with shipping and logistics. The activity in the market remains high, and the underlying demand for construction machinery is great.
The Real Estate Business Area shows a result, excluding capital gains, of 191 MSEK (149). The higher result is driven both by improved operating income and higher profit shares from partly-owned companies.
“After almost two years of challenges, we can now hope that the coronavirus pandemic is starting to come to an end. Our businesses are well prepared: a number of areas are already showing increased growth, and other businesses are ready to gear up. After a period of lower investments, we have also significantly increased the rate of investment in 2021. Lantmännen is very well positioned in all business areas, and our employees’ response to the challenges of recent years has been exemplary. Our plans for the future are solid, and our ambition remains to develop a world-class company and world-class Swedish agriculture,” says Per Olof Nyman.
Please find the full interim report attached, or at www.lantmannen.com/financial-information/.
Images are available at www.lantmannen.com/press-images/.
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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 October 5, 2021.