The Lantmännen Annual and Sustainability Report 2018
Despite last year’s drought, Lantmännen show a strong financial result for 2018 with a historically high dividend to our members, the Swedish farmers. Lantmännen have also made great progress in transitioning to fossil free own production thanks to sustainability efforts during the year. The full Annual and Sustainability Report 2018 is now available in Swedish. The English version will be available in a few weeks.
Lantmännen’s result for 2018, after net financial items and adjusted for items affecting comparability, amounts to 1 387 MSEK, compared to last year’s result of 1 552 MSEK. The decline in earnings is entirely due to the low harvests following the summer’s drought, and a lower ethanol price. The strength of Lantmännen’s business model is shown by both the Food Sector and Business Area Swecon performing well with better results than in 2017.
”One of Lantmännen's greatest strengths as an agricultural cooperative with a balanced business portfolio is that we can act quickly to meet challenges, and that temporary setbacks in certain business can be compensated by stronger results in others,” says Per Olof Nyman, Lantmännen’s CEO and Group President.
In total, the proposed dividend for 2018 amounts to 619 MSEK, the highest ordinary dividend in Lantmännen’s history. As a cooperative company, Lantmännen has been able to take strong measures during the past year aimed toward our members, ameliorating the negative effects of the drought.
”Despite our size, we can quickly shift from short-term actions to long-term investments. In 2019, we will need to act vigorously and flexibly to meet the continued market challenges we see ahead of us. At the same time, we will take further steps in order to become an even better and more profitable company in the coming years – thereby strengthening our position as the Swedish farmers’ best business partner,” Per Olof Nyman says.
For the twentieth consecutive year, Lantmännen is also publishing a Sustainability report. This year, the report has gone through an external public audit procedure.
During 2018, Lantmännen have, e.g.:
- Reduced greenhouse gas emissions from energy use from 184 000 tons 2017 to 151 000 tonnes 2018, a reduction of 18%.
- The share of energy from renewable sources increased somewhat during the year to 73 percent, from 70 percent in 2017, for the group as a whole. Four more sites converted to renewable fuels during the year.
- For Lantmännen’s production sites in Sweden, the share of energy from renewable sources amount to 94 percent, an increase from 89 percent during 2017. Lantmännen aims to reach fossil free production sites in Sweden by 2025, and is well on the way in reaching this target.
- Lantmännen's focus on calculating the feed materials' climate data and taking these into account in feed optimization has yielded results. Lantmännen's feed range for cattle has shown a reduced climate load by up to 30 percent compared to previous assortment, with the same price picture and feed efficiency. On the pig feed side, the decrease is up to ten percent.
- Opened a new recycling plant in Kotka, Finland, that will collect bread waste for the production of sustainable biofuels.
Read the full Annual and Sustainability Report 2018 here: https://lantmannen.com/en/about-lantmannen/financial-information/annual-report-with-sustainability-report/