Sweden
October 4, 2023
Lantmännen’s result for the second four-month period of 2023, after net financial items and adjusted for items affecting comparability, amounted to 1 094 MSEK – compared to 943 MSEK for the same period the previous year. The accumulated result for the first eight months of the year amounted to 1 920 MSEK (1 581).
Lantmännen continues to develop positively, and delivered the highest result ever both for the second four-month period and for the first eight months of the year. The Energy Sector and Swecon Business Area showed continued strong results, while the Agriculture Sector’s result was lower than the previous year – mainly due to lower harvest volumes and poorer grain quality than normal. The result in the Food Sector’s international businesses has increased, partly due to the weak Swedish currency. The Swedish businesses in the Food Sector continues to meet challenges, and the result has decreased by more than a third during the first eight months of the year.
“Our broad and global business portfolio once again demonstrates its strength. The result that is generated in Lantmännen ultimately benefits the members and contributes to Swedish farming – which makes the strong result extra important, since many of our members are struggling with this year’s weak Swedish harvest. The result of the harvest, combined with serious events connected to the weather lately, also underlines the importance of continuing the work with climate adaptation – for example through investing in efficient irrigation and drainage systems,” says Magnus Kagevik, Lantmännen’s Group President and CEO.
The figures below refer to operating income for the second four-month period, adjusted for items affecting comparability. The previous year’s result for the same period are in parentheses.
The Agriculture Sector’s result was lower than the previous year: 203 MSEK (258). The lower result was primarily due to the Swedish agricultural operations, which have been negatively impacted by lower harvest volumes and a significantly delayed harvest. The total harvest volume in Sweden is estimated to be lower than the average for the past five years, and the grain quality poorer than normal. The result in the Finnish agricultural operations was in line with the previous year. Lantmännen Maskin showed a slightly higher result than last year.
The Energy Sector’s result amounted to 429 MSEK (397). The result in Lantmännen Biorefineries was slightly higher than the previous year. During the second four-month period, the ethanol price has stabilized at a lower level than last year’s historically high prices – although this has been compensated by a corresponding decrease in raw material prices. Sales of starch and gluten continued to increase during the four-month period, and pellet company Scandbio delivered yet another strong result for the period.
The Food Sector’s result increased to 374 MSEK (216), entirely driven by a higher result in the sector’s international operations – which in part was due to the weak Swedish currency. The result from the sector’s Swedish businesses has continued to decrease, and is down by more than a third so far this year. The Swedish operations face continued challenges – for example in high costs and fierce competition from Private Labels.
The Swecon Business Area delivered a result of 205 MSEK (146). The delivery rate increased during the period, which has led to higher net sales and a higher result. However, demand for construction machinery has cooled significantly in all markets during the year, with a decreased order intake as a result. Demand for used machines and rental machinery has also decreased.
The Real Estate Business Area’s result, excluding capital gains, amounted to 104 MSEK (85). The work with installing solar panels at Lantmännen’s facilities in Sweden continues – so far, seven solar cell plants have been purchased, and installation is ongoing at several locations.
“The financial macro situation and great uncertainty in the world around us makes it difficult to predict the future, and all of Lantmännen’s businesses need to adapt operations to changed conditions in the market. At the same time, we remain in a strong financial position, which is a great advantage in uncertain times. Overall, I have a positive view of the future – both for Lantmännen and for our work with contributing to making farming thrive,” says Magnus Kagevik.
Please find the full interim report attached, or at https://www.lantmannen.com/about-lantmannen/financial-information/.
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