DLG Agribusiness profit reaches EUR 53.2 mln; maintains strong market position

The Danish agribusiness activities of the DLG Group – Europe’s second-largest agribusiness company – continued its positive trend in 2015 with a turnover of EUR 2.1 bln and maintained a very high market share in a difficult market. DLG a.m.b.a. achieved a strong operating profit of EUR 53.2 mln through market share gains in several sectors and through a reduction in the cost base of EUR 33.5 mln since 2012.

"We are happy to acknowledge our excellent cooperation with our owners and customers by profit sharing in the order of EUR 14.1 mln, especially at this time when the agricultural sector deserves all the support we can give," says Mr. Ole Christensen, COO in charge of the DLG Group’s Agribusiness.

"The financial result in Denmark is a direct effect of the changes we've made in recent years to align the companies to the new challenges in an agricultural sector that is under increased pressure. A strong customer focus as well as increased competitiveness is crucial to gain market share," says Ole Christensen.

Future growth within Agribusiness will come from innovation in the countries where DLG is represented. Through its plant breeding subsidiary, Sejet Planteforædling, in Horsens, Denmark, a number of highly successful wheat varieties have been developed, including Benchmark and Pistoria, of which a big international breakthrough is expected. The varieties are expected to increase earnings in Sejet significantly in the coming years, thereby contributing to DLG's bottom line.

DLG's rapeseed oil business also delivered great results in 2015 with a turnover of EUR 174 mln and profit of EUR 4.3 mln. The DLG Group has invested heavily in the company's oil mills in Denmark and Germany in 2015 and has a crushing capacity of 450,000 tons of rapeseed and refined oil production of approximately 160,000 tons.

Meanwhile, the business model, DLG has developed in its Danish agribusiness division will be implemented throughout the Group. A new organization to harvest clear synergies across the Group is expected to contribute significantly to cost reductions.

"We are expecting to start implementing the business model from our Danish division in our German and Swedish subsidiaries in 2016. The overall goal is to reduce costs by at least EUR 16.1 mln over the next two years. In addition, DLG has changed its organization to ensure full utilization of all synergies in operations, purchasing, R&D and investment," says Ole Christensen.