Lantmännen’s result for 2019 is the highest ever

Financial report

Lantmännen’s result, after net financial items and adjusted for items affecting comparability, amounts to 1 877 MSEK – a significant improvement compared to last year’s result of 1 387 MSEK.

”Lantmännen’s result for 2019 is the highest of all time. All of Lantmännen’s sectors and business areas have improved their results during the year, and we have advanced our positions in most areas of operation. Although the beginning of the year was marked by the difficult situation after the 2018 drought and heatwave, the large and good quality harvest in 2019 contributed to a strong recovery of earnings within the Agriculture Sector,” says Per Olof Nyman, Lantmännen’s CEO and Group President.

Figures below refer to operating profit adjusted for items affecting comparability. Last year’s result in parenthesis.

The Agriculture Sector shows a higher result than the previous year: 210 MSEK (197) – mainly due to a significantly higher result in the third four-month period. The 2019 harvest was the third largest ever, and Lantmännen Lantbruk has returned to its normal business model as a net exporter of grain. Demand for feed remains high for all species.

The Energy Sector’s result amounts to 355 MSEK (200) – a marked improvement compared to the previous year. This is primarily explained by a significantly higher average ethanol price during the year, as well as a better price relation between ethanol, feed and inputs. The integration of the oats operation in Kimstad, which was acquired previously during the year, has been executed in a successful manner.

The Food Sector presents its highest result ever: 1 018 MSEK (787). Virtually all of Lantmännen Unibake’s markets and categories are developing positively and deliver strong results, and the investments that have been made in the operations over the last few years are providing positive effects. Lantmännen Cerealia has also improved its result, primarily thanks to good effects from the improvement program that has been carried out during the year.

Swecon Business Area’s result is also the highest ever: 514 MSEK (440). Activity has been high in all Swecon’s markets during the year, although certain signs of a slowdown could be seen during the last six months.

The Real Estate Business Area shows a result, excluding capital gains, of 223 MSEK (213). The work with building a new office for parts of Lantmännen’s businesses in Malmö continues as planned.

The Board of Directors proposes a refund and supplementary payment of 1,75 percent (1,5) on trade with Lantmännen Lantbruk Sweden, and a refund of 1,0 percent (0,5) on purchases from Lantmännen Maskin’s and Swecon’s Swedish operations. In total, the proposal for refund and supplementary payment amounts to 205 MSEK (157). In addition, the Board proposes a contribution dividend of 8 percent (8) on the nominal share amount, totaling 237 MSEK (213), and a contribution issue of 288 MSEK (250). In total, the proposed dividend amounts to 730 MSEK (620).

“This year’s strong result means that Lantmännen’s proposed dividend of 730 MSEK is record high, which is very gratifying after a period that has been challenging for many of our members. Lantmännen’s most important mission is to contribute to a positive development on our members’ farms. That’s why it feels extra good to be able to deliver such a high result,” says Per Lindahl, Chairman of the Board of Directors.

“The last few years have been Lantmännen’s most successful of all time, and I would venture to say that we as a company are in a stronger position than ever before. We will continue to focus on further strengthening our positions in the market: among other things, through continued investments in infrastructure, product and service development, and research and development in all areas of activity. In this way, we continue the work on our long-term ambition to drive development of farming of the future – and to continue helping to create a world-class Swedish agriculture,” says Per Olof Nyman.

The year-end report is available at https://www.lantmannen.com/financialinformation/.

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

If you have any questions, please contact:

Per Olof Nyman, CEO and Group President, Lantmännen
Phone: +46 706 57 42 47
E-mail: per.olof.nyman@lantmannen.com

Michael Sigsfors, Director Group Controlling, Lantmännen
Phone: +46 704 22 28 65
E-mail: michael.sigsfors@lantmannen.com

Lantmännen’s press office
Phone: +46 10 556 88 00
E-mail: 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 10, 2020.