Sustainability is a cornerstone of new DLG strategy

The new strategy builds on the latest strategy period, in which the DLG Group improved its earnings capacity and financial ratios. This solid foundation serves as the starting point of Creating the Future 2030, which sets the strategic direction for the DLG Group’s development over the next years.  

“Now is the time to define the future of the DLG Group. We must continue to grow, but in a responsible way. Creating the Future 2030 is a strategy largely driven by values and a desire to take social responsibility while striving to continue the positive development that we have seen over the last years,” says Chairman of the Board Niels Dengsø Jensen.

The business of the future is sustainable 

Sustainability presents a commercial opportunity for DLG, and it must be a cornerstone of our future business. Over the next years, the Group will continue to develop its business and serve existing needs in the market while taking the driver’s seat within sustainability. DLG plans to invest DKK 2 billion in the sustainable transition towards 2030.   

“We need to invest even more money, competencies and more time than we’ve already done in new products and production forms within alternative proteins, input products for crop cultivation and green energy forms. This will increase the earnings potential of DLG and our many customers, while at the same time contributing to the sustainable transition. There is a demand for action and solutions, and we consider ourselves a central player in that,” says Group CEO Kristian Hundebøll.  

When DLG published the Zero sustainability plan in 2021, the Group also committed to meeting the Paris Agreement’s goal of limiting the global temperature increase to 1.5 degrees. This will be achieved by switching to green electricity and promoting the use of sustainable energy sources. In the spring of 2022, DLG have committed to the Science Based Targets Initiative and have submitted an application to have the goals validated.   

European market leader

DLG’s 2021 turnover amounted to DKK 59 billion of which more than two thirds were generated outside Denmark. The Group’s activities are primarily within the food segment, while 40% comes from sales of energy products and building materials (formerly Energy & Retail) – a business area that accounted for 80% of earnings growth in the last strategy period and has thus been a significant growth engine for the Group. The sales of energy products as well as building materials is primarily based in Germany, which is the DLG Group’s largest market. In 2022, revenue on the German market is expected to reach DKK 40 billion.  

“Many consider DLG to be an agricultural company, but we are much more than that. The new strategy emphasises that energy and building materials are important business areas for DLG and that these areas will generate a significant part of our growth over the coming years. Our strength lies in our diverse business model where we have built the Group around three robust business areas serving fundamental needs in society by providing food, energy and housing. This means that the underlying demand for our goods and products is stable, and the breadth of our business enables us to withstand the volatility we sometimes experience in the market,” says Kristian Hundebøll.  

With the new strategy, the Agribusiness and Premix & Nutrition business areas will be gathered in the Food business unit, while Energy and Retail are divided into two business units: Energy and Housing. The objective is for each business area to maintain and grow its strong market position and the solid financial starting point that we built with our Leading the Way 2021 strategy.  

In the last strategy period, the collaboration across borders and across companies within the Group was strengthened, and we will continue this development with the new strategy which focuses on further utilisation of Group-wide economies of scale. This will be achieved by streamlining processes and systems and by increasing collaboration even more between employees across the group.   

“Cost leadership never goes out of fashion, and we must always do business in the smartest and most efficient way. We’ll take collaboration to new levels. At the same time, we’ll invest heavily in digitalisation, IT and optimisation as well as in the development of colleagues at all levels, which is a crucial step towards achieving our business goals,” says Kristian Hundebøll.