Lantmännen Group: substantially increases its profits

Stockholm / SE. (lu) Lantmännen is one of the Nordic region´s largest food, energy and agricultural groups. In 2007 the Group had nearly 13.000 employees. Lantmännen is owned by 42.000 Swedish farmers. The soil and its possibilities are the foundation of Lantmännen´s business. The Group operates in all links of the value chain, from farm to table.

Lantmännen´s corporate net turnover for January to December 2007 amounted to 35.989 million Swedish Crowns (SEK), an increase of twelve percent compared with 32.256 million SEK in the prior year. Operating profits for January to December amounted to 870 million SEK (183 million SEK), an increase of 375 percent.

Profit after net financial items amounted to 822 million SEK (244 million SEK). Adjusted for items affecting comparability, profits after net financial items totalled 470 million SEK (199 million SEK). Investments during the period January to December amounted to 2.259 million SEK (1.726 million SEK).

«Lantmännen is on the right track. Our earnings in 2007 clearly demonstrate that the programme of measures we have initiated is beginning to bear fruit. Lantmännen is beginning to recover and this will enable us to make further vigorous efforts to become a more cost-efficient, competitive and successful company which will be able to deliver even better figures», explains Per Strömberg, Lantmännen´s President and CEO.

Businesses showing very good earnings include Lantmännen Lantbruk, Lantmännen Anläggnings- och Lantbruksmaskiner with Swecon and Lantmännen Kronfagel. Svalöf Weibull is also showing a satisfactory profit. At Lantmännen Lantbruk increased sales of input products for plant cultivation, increased volumes in cereals and most importantly the reduction of operating expenses have contributed to the improvement that has resulted in an operating profit of 144 million SEK (70 million SEK). It is primarily increased sales of farming machinery that has helped the machinery business, and at Svalöf Weibull the improvement in earnings stems from the restructuring programme that SW Seed carried out in 2006 which has resulted in lower costs in its current business operations.

«As far as Lantmännen Kronfagel is concerned, the company has achieved a fantastic turn-around of its business, with an operating profit of 71 million SEK compared to 312 million SEK», Strömberg points out.

Businesses not achieving satisfactory earnings will be receiving special attention in the time ahead to turn the negative trend around. These include Lantmännen Energi and Lantmännen Granngarden. In the case of Lantmännen Granngarden the Board of Directors has decided, as part of the Group´s portfolio strategy, to evaluate strategic alternatives for Lantmännen Granngarden, where divestment is one possible alternative.

«From an overall perspective the Group´s profits are most encouraging and as a result the Board of Directors is proposing a dividend payment to the owners totalling 283 million SEK. As far as Lantmännen Granngarden is concerned, our view is that another owner might have better possibilities developing Lantmännen Granngarden´s competence and concept, both regarding sales to business to business customers as well as consumers», explains Board Chairman Thomas Boden.
Read more: Year-end Report (PDF