DLG’s energy business delivers record earnings of EUR 30 mln before tax

The core business area Service & Energy contributed a turnover of EUR 188 mln in 2015 and the highest earnings growth of the DLG Group’s three core business areas with a profit of EUR 30 mln before tax and gains on divestments.

“The very good performance in Service & Energy has been created through the ambitious new partnership DCC Energi in the Danish market and through very satisfactory earnings in our German subsidiary Team AG. These are two completely different setups, but both are well-functioning units that add to the bottom line and create synergy in their own way,” says Lars Sørensen, Group COO of DLG.

The cooperation in DCC Energi, which DLG owns 40% of, is barely six months old and has had an optimal start. The cooperation is currently exclusively to generate profit and create common synergy in order to expand the level of service to customers.

“It is very satisfying to see how DCC Energi takes hold of the new situation and exploits the opportunities so we can offer customers a broader and more competitive energy portfolio. A better situation for costs has also been created and we expect to see the full effect of the synergies in 2016 and a generally positive trend in the activities aimed at increasing market share,” says Lars Sørensen.

Team AG has continued the satisfactory trend from 2014 and has followed the plans for objectives and met expectations for the year. This was done by reducing costs and by introducing a new structure in the sales offices. 80% of the revenue in Service & Energy comes from Germany.

“Team delivers a solid effort and very satisfactory performance again, even though the competitive situation in the energy market has intensified and demand has been affected by the mild weather,” says Lars Sørensen.

“On the other hand the hardware stores in Team have been running at top speed all year and have developed satisfactorily and maintained a high level of earnings. This was affected by the area being strengthened in 2014 by the acquisition of Bauen & Leben, which operates 26 hardware stores in North Rhine-Westphalen. The integration has progressed very satisfactorily and we are generally confident that Team will expand through organic growth and continued acquisitions,” says Lars Sørensen.