Lantmännen’s 2020 result is the highest ever

Financial report, 2021

Lantmännen’s result, after net financial items and adjusted for items affecting comparability, amounts to 2 041 MSEK – an increase of 164 MSEK compared to last year’s previous record result.

”2020 has been an unusual and challenging year. Despite this, Lantmännen delivers its highest result ever, which underlines our strong position as a company. All our businesses have handled the year’s challenges in an excellent way and adapted operations to the changing conditions. The strong result also means that we, once again, can propose the highest dividend ever to our members,” says Per Olof Nyman, Lantmännen’s Group President and CEO.

The effects of the coronavirus pandemic are estimated to have impacted the group’s result negatively by some 325 MSEK. Figures below refer to operating profit adjusted for items affecting comparability – last year’s figures in parentheses.

The Agriculture Sector has been relatively unaffected by the coronavirus pandemic, and has developed well during the year. The result has more than doubled, to 439 MSEK (210). The effects of the 2018 drought, which impacted the results for the last two years, have now passed. The 2020 harvest was very intensive, with historically high delivered volumes and generally good grain quality. The autumn sowing acreage was one of the largest ever, creating favorable conditions also for 2021. Lantmännen Maskin has achieved good effects through the ongoing improvement program, and has had a positive underlying development.

The Energy Sector’s result amounts to 530 MSEK (355) – a significant improvement compared to the previous year. All businesses in the sector continue to develop positively and show strong results – not least thanks to improved yields and higher produced volumes. The ethanol price has been extremely volatile during 2020, but at the end of the year returned to more normal level.

The Food Sector’s result amounts to 786 MSEK (1 018). The Foodservice operations in primarily Lantmännen Unibake have been hit hard by the coronavirus pandemic – especially in those markets where customers largely consist of hotels, restaurants, fast food chains and airlines. At the same time, demand for staple goods and fresh bread has increased in stores during the pandemic. Unibake has conducted successful work in reducing costs and adapting production. Lantmännen Cerealia has continued to stabilize its operations and improve efficiency, and has markedly improved its result compared to last year.

Swecon Business Area presents its second-highest result ever: 505 MSEK (514). The total construction machinery market decreased in the first six months of the year, but again strengthened in the second half of the year – thanks to high underlying activity in many customer segments. The aftermarket is generally developing well.

The Real Estate Business Area shows a result, excluding capital gains, of 223 MSEK (223). The business area has, during the year, delivered according to plan, and largest projects are continuing as planned.

The board proposes a refund and supplementary payment of 2,5 percent (1,75) on trade with Lantmännen Lantbruk Sweden, and a refund of 1,0 percent (1,0) on purchases from Lantmännen Maskin’s and Swecon’s Swedish operations. In total, refund and supplementary payment amounts to 305 MSEK (208). In addition, the board proposes a contribution dividend of 9 percent (8) on the nominal value of the contributions, in total 291 MSEK (237) – and a contribution issue of 306 MSEK (288). In total, the proposed dividend amounts to 902 MSEK (733).

“Lantmännen isn’t your usual company – and 2020 hasn’t been your usual year. Lantmännen’s strong result means that the board also this year proposes the highest dividend ever. In a time of insecurity and limitations, the agriculture and food sectors have shown their strength, and the ongoing pandemic has highlighted important issues for the future – for example the importance of a secure food supply and increased self-sufficiency for food,” says Per Lindahl, Chairman of Lantmännen’s Board of Directors.

“Lantmännen has had strong underlying growth in recent years. The drastic and unexpected events of 2020 are a notch in the growth curve – but we are ready for a quick return to profitable growth in 2021. Lantmännen has a strong financial position, we are well positioned in all business areas, and we have established a strong underlying momentum in our growth strategy. This means that we have every opportunity to develop an even better and profitably growing company in 2021 and the following years,” says Per Olof Nyman.

Please find the full year-end report attached, or at www.lantmannen.com/financialinformation/.

Images are available at www.lantmannen.com/press-images/.

If you have any questions, please contact:

Per Olof Nyman, CEO and Group President, Lantmännen

Phone: +46 706 57 42 47

Email: per.olof.nyman@lantmannen.com

Christian Johansson, CFO, Lantmännen

Phone: +46 705 37 12 27

Email: christian.johansson@lantmannen.com

Lantmännen’s press office

Phone: +46 10 556 88 00

Email: press@lantmannen.com

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 February 9, 2021.