DLG Groups annual results shows both top-line and bottom-line growth

For DLG, 2020 was a successful year in several respects. Group revenue topped DKK 51 billion, while EBITDA of more than DKK 2 billion was a new record. EBIT totalled DKK 1,071 million, up 28% from DKK 839 million in 2019. Profit rose from DKK 350 million in 2019 to DKK 601 million in 2020. The financial key ratios were once again improved.

“The coronavirus pandemic left its clear stamp on our lives in 2020, which was a year that clearly demonstrated the unpredictability of the world in which we live and do business. In this light, I’m very pleased that we have returned such excellent results, with both top-line and bottom-line growth. This proves the value of our strong business model, in which all business areas contribute to the positive results, and which enables us to make a historic distribution of DKK 135 million to our owners. This equates to a return on their contributed capital of 11%,” says Kristian Hundebøll, Group CEO of DLG, continuing:

“The results are to a great extent attributable to the extraordinary efforts of the DLG Group’s employees, who tackled the challenges presented by the pandemic in a spirit of readiness for change and a will to succeed. At a time when much of the world went into lockdown, they helped to ensure the supply of raw materials for food production and other areas, thereby contributing to keeping society’s wheels turning. I would like to express my sincere gratitude for all their hard work.”

The German market continues to account for a significant share of DLG’s business. With revenue close to DKK 33 billion, up 5% on 2019, and a 8% increase in EBITDA to DKK 1.1 billion, DLG continues to achieve top-line and earnings growth in Germany, which is Europe’s largest economy.

“In 2020, we strengthened our market position within all three business areas through the efforts of our strong German subsidiaries, which cover most of the federal states of Germany. It is indeed very pleasing to see the significant growth we’ve achieved in Germany in recent years. We expect to be able to further expand our strong position in the German market, thereby creating value for our Danish owners,” says Kristian Hundebøll.

Agribusiness

After an excellent year for the group’s Agribusiness companies, DLG maintains its strong position in the European market for agricultural products. Revenue totalled DKK 32,1 billion, and sales grew 7%. EBITDA of DKK 953 million is on a par with 2019.

In the autumn, high-quality crops were harvested that are in high demand on the world market. The DLG Group exported a total of 4.6 million tonnes (+ 15% compared to 2019) of grain via the group’s port terminals in Denmark, Sweden, Germany the Baltic States and Poland which made a particularly strong contribution to the increase in revenue.

“We executed a major export programme involving the shipping of high-quality grain from our northern European port terminals to customers in most parts of the world. Demand from the European markets was particularly strong, but we also succeeded in building up new markets elsewhere in the world,” says Kristian Hundebøll and continues:

“For many years, we’ve also worked hard to develop a strong portfolio of the very best feed compounds for our customers. This resulted in another year of high sales of compound feeds totalling 4 million tonnes, cementing the DLG Group’s position as one of Europe’s largest feed producers.”

In October 2020, DLG received the first shipment of verified sustainable, deforestation-free soya, as part of the DLG Group’s efforts to achieve 100% responsibly and deforestation-free soy by 2025.

2020 was a particularly satisfactory year for crop cultivation, with a fine growing season and excellent sales growth for plant protection and fertiliser in Denmark, Germany, Sweden and the Baltic countries.  

Premix & Nutrition

With revenue of DKK 3 billion and EBITDA of DKK 175 million, up 14% on 2019, the Vilofoss Group was back on a growth track in 2020, posting strong increases in both sales and earnings.  There was particular focus on the integration of the international acquisitions made in recent years as well as our strategic partnerships, which progressed well despite the challenges presented by COVID-19. In the France, a significant business turnaround yielded impressive earnings and it is now Vilofoss' third largest market, while the group has cemented its position in the Benelux countries. China and Russia are also delivering positive results despite difficult market conditions.

The German vitamins and minerals market is characterised by intensified competition. In spite of that Vilofoss Germany still had an excellent year with fine sales performance and viewed over a number of years the German market shows a positive rising trend. Vilofoss Denmark also enjoyed a good year, with particularly strong demand for Vilofoss’ products to optimise farming production output.

“The Vilofoss Group delivered a particularly impressive performance, harvesting the fruits of the strategic acquisitions and international investments made in recent years, while Vilofoss commands a strong position in its key markets in Germany and Denmark. Premix & Nutrition is a business area with considerable potential, and the internationally recognised Vilofoss brand is a strong asset for us,” says Kristian Hundebøll.

Energy & Retail

2020 was generally a good year for the Energy & Retail business area, which posted growth in both revenue and earnings. Revenue increased by DKK 300 million to DKK 16.3 billion in total, while EBITDA was DKK 874 million, which represents an increase of 10% compared to 2019. 

Team in Germany, which accounts for the largest share of the Energy & Retail activities, once again posted record results for both their energy and DIY store divisions. Improved margins in the energy area and increased demand from German DIY stores’ private and business customers, in particular, were behind the outstanding results.

The Danish energy business, which is based on a partnership between DLG Energi and DCC Energi, posted very sound results for 2020. The same applies to the Land & Fritid chain, which posted its highest-ever revenue and earnings in 2020.

“In 2020, Energy & Retail’s performance was again outstanding, with satisfactory results across the board. In the German market, Team once again posted record results, with strong growth in both revenue and earnings in both the energy and DIY store divisions. This leaves no doubt that Team is and will remain a strategically important part of the DLG Group, making a significant contribution to our overall results, and of which we continue to hold great expectations,” says Kristian Hundebøll.

Outlook for 2021

Since 2021 is the final year of the current strategy period, there will be focus on delivering on the targets set out in our ‘DLG Leading the Way 2021’ strategy. At the same time, the DLG Group will start implementing its corporate sustainability strategy, with the development of sustainable solutions for customers and owners. 

“2021 is set to be an exciting year for the DLG Group as we will be seeing our group strategy through to completion, while also ramping up our work on sustainable products and solutions. However, a number of external factors will also impact the world in which we do business. Even though vaccination programmes have commenced, it is difficult to predict how the pandemic will develop in 2021 and its impact on the world market and global economy. A number of trade policy and economic factors well as African swine fever and avian influenza might also affect market developments. However, we are maintaining our strategic course and earnings targets,” says Kristian Hundebøll.