New strategy: DLG aiming for 50% earnings increase

Today the DLG group presented its new five-year strategy - DLG Leading the Way 2012 - which, after a period of consolidation and disposals, will spur growth in Europe's largest agricultural company. This took place in conjunction with release of the group's strongest financial statement to date.

“Competitors will see DLG's true strength rolled out onto the market over the next few years. We will be no. 1 in our most important markets and expand our leading position in Europe. In 2016, the Group made DKK 570 mln after tax. In 2021 we will earn DKK 850 mln,” says Group CEO Kristian Hundebøll.
Harnessing the group's synergies will create additional growth in Germany, but DLG is also investing in new markets, including France, where construction of a new cattle mineral factory is currently underway. DLG also has a clear goal of growing both organically and through acquisitions.

“We will continue expansion in Agribusiness throughout Northern Europe with a focus on our largest market, Germany. Our activities within Premix & Nutrition is global, and we are looking at opportunities in Africa and India. We also see greater potential in Service & Energy, which is a strong earnings area for DLG,” says Hundebøll. 

New customer solutions
Growth on the main market will, according to “DLG Leading the Way 2021” stem from innovative solutions with the customer at the centre. As Europe's largest purchaser of raw materials, DLG will further capitalise on the company's expertise and geographical reach. DLG is also planning on targeted investment in digital solutions and IT that will secure earnings in the future. 

“We are serious when ean it when we say that DLG will be leading the way. As Europe's largest agribusiness company, we have the strength to set the standards on the market. We will continue to ensure the best feed solutions for animal production, and we will build on our success in grain cultivation and consulting services for crop breeding, where we are among the leading companies," says Kristian Hundebøll. 

Full support from owners
The strategy was adopted in collaboration with DLG's owners, and chairman of the board, Niels Dengsø Jensen, emphasizes that the strategy has won full support. 

"Together with the business, the owners, working through the Committee of Representatives, have been involved in the process, and the owners can therefore see their concerns and interest reflected in the new strategy. It was unanimously adopted, and the full support from the circle of owners is extremely important for this ambitious strategy to succeed," says Niels Dengsø Jensen. 

"As a dedicated agricultural company DLG is razor sharp. The business has total support from the owners. The strategy is far-reaching in its ambition, but we also believe that it is realistic. In terms of markets and financial position DLG has never been stronger,” says Niels Dengsø Jensen.