Lantmännen: economic performance improvement continues

Stockholm / SE. (lg) Lantmännen´s third quarter results after financial items, adjusted for items affecting comparability, amounted to 431 million SEK (306 million SEK). Lantmännen´s cash flow experiences seasonal variations, and in the third quarter an increase in tied-in capital occurred due to grain purchases in connection with the harvest. The cash flow for the third quarter was -414 million SEK (911 million SEK). The hard work that was carried out in 2009 has created a continued positive trend in profits that are well in line with plans.

«The result is primarily driven by our powerful savings programs, with the exception of Swecon, which has a positive market trend – particularly in the Swedish market. Lantmännen Lantbruk´s cooperative business also shows a positive result. For the past twelve months, we show a profit after financial items, adjusted for items affecting comparability, of 899 million SEK», says Per Strömberg, CEO and Group President of Lantmännen.

All numbers referred to below are adjusted for items affecting comparability.

The operating profit for the Agriculture Sector amounted to 155 million SEK, an improvement of 106 million SEK compared with last year (49 million SEK).

Lantmännen Lantbruk´s cooperative part shows a positive result development, driven by increased fertilizer sales, better results in the grain operations and, not least, due to ongoing programs for cost efficiency. The work to achieve effective basic operations, increased competitiveness and improved customer satisfaction continues.

The Machinery Sector shows a result of 78 million SEK (60 million SEK). Both agricultural and construction machinery reported a positive result. Savings programs are effective, but also sales show a positive development.

The Energy Sector shows a quarterly profit of 26 million SEK (25 million SEK). This result is mainly due to a positive development at Lantmännen Agroetanol, because of good capacity utilization in the period and large purchases of grain before the increase in price.

The Food Sector reported a profit of 219 million SEK (321 million SEK). The result is explained by the European recession and increases in raw material prices of, for example, grain, that have led to margins continuing to be squeezed for Lantmännen Unibake. Lantmännen Cerealia´s B2B in Denmark is still facing a challenge due to a decline in the total flour market, while the Swedish B2B is developing well and consumer sales in the Nordic region have been going well. As in the previous quarter, Lantmännen Kronfågel is developing in a positive way, due to full capacity utilization and good volume development.