Despite the effects of the historic drought in 2018, the DLG Group has one of the company's best half-year accounts. Operating profit (EBITDA) was DKK 594 million. The profit before tax was DKK 151 million. Revenue of DKK 24.5 billion is on a par with the first half of 2018. At the same time the DLG Group strengthened the financial key figures. The effects of last year's drought-affected harvest meant a grain trade of DKK 600 million less than expected.
However, the effects were partly offset by an overall sales growth of raw materials and compound feed in the Group's three main markets in Denmark, Germany and Sweden. The figures include a 7% increase in cattle feed sales and an 11% progress in commodities. The Group's processing of rapeseed and the sale of refined oil has also achieved a very satisfactory growth in earnings. In addition, DLG's German subsidiary Team AG had an increased turnover of DKK 600 million and an operating profit of DKK 186 million, corresponding to a 10% increase in earnings compared to the first half of the year 2018.
CEO Kristian Hundebøll is pleased with the interim financial statements: “We are pleased with the interim financial statements, which once again show the robustness of our business. After a difficult year with negative effects of last year's harvest, it’s especially our larger sales of compound feed and commodities, combined with a significant profit in our German energy business, that has pulled everything up,” says Kristian Hundebøll.
Good financial ratios
Based on historically good financial key figures combined with a strengthened funding of DKK 1.9 billion through a successful issuance of German Schuldschein-bonds, the DLG Group is well prepared for the future.
"Our targeted work to streamline the business and improve the Group's financial key figures have borne fruit. With strengthened liquidity resources, we are well equipped to further develop our core business and thereby create value for our owners,” says Kristian Hundebøll.
Looks like a good harvest
The crops are generally good looking and although it is too early to predict the final result, there is a prospect of a good harvest this year - at least in northern Europe.
“The picture in Denmark, Sweden and northern Germany looks positive, while the eastern parts of Germany seem to be having a somewhat smaller harvest than expected. We can therefore not draw a final conclusion on our expectations for the annual result of 2019 before we reach further into autumn,” says Kristian Hundebøll.
|Key figures for the DLG Group|
|Revenue DKK billion||24.5 (24.3)|
|Operating profit (EBITDA) DKK million||594 (611)|
|Profit before tax (EBT) DKK million||151 (159)|
|Consolidated profit DKK million||93 (100)|
|Equity DKK billion||5.6 (5.3)|