Energy and DIY stores continue to grow in the DLG Group

2018 was a very satisfactory year for the DLG Group’s business area Energy & Service in the main markets in Germany and Denmark. The business area had a revenue of EUR 2.0 billion in 2018 (EUR 1.8 billion in 2017) and EBITDA was EUR 78.5 million in 2018 (EUR 92.9 million in 2017). CFO at DLG Lars Sørensen says:

“Team’s business of energy and DIY stores achieved the best result ever. The revenue amounted to more than EUR 1.9 billion and an operating profit (EBITDA) of EUR 66.3 million. (EUR 48.7 million in 2017). The centralisation of operations and logistics, as well as increased sales of lubricating oil to German agriculture and increasing sales at our gas stations contribute to the huge gains.”

Team is the DLG Group’s best-earning company and has 29 sales offices, 199 gas stations and 73 DIY stores. Team’s agricultural customers account for between 15-20% of Team’s energy sales, and sales to German farmers are in close interaction with DLG’s German agribusiness HaGe.

Gains in Denmark

“The effective utilisation of the synergies and interaction between DCC’s distribution network and DLG’s farm supply activities contributes to the fine results. This year’s harvest gave a declining volume in agriculture in 2018, but we have succeeded in compensating through growth in other business areas. We expect continued growth in the Danish market and will continue to expand our market position in energy for agriculture in 2019.”

Positive result in Land & Fritid

“Land & Fritid is developing well and is increasingly successful in selling its own brands, including Equsana horse feed and the pet food line SUND. The Group’s three horse feed brands, Swedish Hippo, German Champ, and the international Equsana brand, are now one single entity that strengthens our earnings. We expect to significantly increase our market share for horse feed in Europe in the future years,” says Lars Sørensen.