DLG Group continues transformation in a year of transition

In the first six months the revenue totaled DKK 31.1 billion compared to DKK 29.8 billion in the same period last year, while EBITDA was DKK 875 million compared to DKK 950 million in H1 2024. The decline in EBITDA is driven by an impairment due to the reconstruction process in Enorm Biofactory, as well as challenging grain markets in H1.

An important milestone in the first half of 2025 was the launch of the three-year transformation programme, ReGen.

“We saw stable development across several core business segments in the first half of the year, which supported operating profit from core activities. However, the results delivered still fall short of our ambitions and potential. Our key priority is to extract more value through focus and improved competitiveness. Therefore, we have launched ReGen to futureproof DLG Group by increasing efficiency, strengthening competitiveness and accelerating value creation,” says Group CEO Peter Giørtz-Carlsen and continues:

“2025 is a transition year where we are cleaning up and investing in the transformation to improve our core business. We have identified our full potential, our plan is clear, and we are confident that current actions will lay the foundation for stronger and more stable results in the future. A transformation of this scale takes time and demands consistent effort. We remain focused on delivering on our targets and executing with discipline to secure long-term value creation for our owners.”

Good start to the year in core business segments

In the Agriculture Business Group, performance was generally strong though challenging global grain markets in H1 had a negative impact. Svenska Foder and DanÆg has a good start to the year, and the Animal Nutrition Business Group (Vilofoss) delivers solid performance.

The Energy Business Group delivered a stable result, although the business mix is shifting due to evolving and volatile market conditions, a development expected to continue throughout 2025. The Housing Business Group is stabilizing results after a challenging 2024 and focused efforts on adjusting the business to new market realities during H1.

“It is positive that most of our underlying core activities are performing, while the primary challenges in H1 stemmed from our non-core activities. Strengthening our core business remains a key strategic priority,” says Peter Giørtz-Carlsen.

ReGen transformation programme is off to a good start

In May DLG Group took the initial steps in its transformation journey to build a more focused, simplified and competitive business. The impact of the ReGen programme has a target of DKK 1 billion in gross EBITDA improvements anticipated to be achieved by year three. 600 million DKK will be strategically reinvested to enable and sustain the transformation.

The first wave of initiatives to fund and enable long-term transformation are well underway and are now being implemented.

To adapt to market developments, DLG Group will optimize the site structure. Over the next years, approx. 30 per cent of the sites in the Agriculture Business Group will be taken out of operation. The goal is to future-proof the infrastructure to meet the evolving needs of farmer-owners and customers, and to improve competitiveness, while ensuring minimal impact on farmer-owners and customers.

In addition, a new operating model is being implemented to enable scale and functional excellence across DLG Group to unlock the full potential of the transformation. During 2025, approx.150 white-collar positions across the Group are made redundant with a run-rate impact from 2026.

“We are making necessary and tough decisions to future-proof DLG Group. These are not decisions we take lightly. We are saying goodbye to valued colleagues, and we do so with respect and gratitude for their contributions,” says Peter Giørtz-Carlsen.

Outlook 2025

“Although we see some positive developments in our underlying performance and harvest yields is expected to increase across Europe, we also see the grain markets continue to be pressured by continued low prices. Furthermore, we are in a transition year where we are turning every stone with our ReGen programme to make DLG Group fit for the future, and this exercise will come with additional short-term adjustments. Based on this, we expect 2025 to be a challenging and unsatisfactory year from a financial perspective. However, these efforts are necessary to establish the foundation for stronger and more stable results in the future. We will maintain our focus on strengthening our core business and ensuring that the transformation continues to build long-term value,” says Peter Giørtz-Carlsen.