Last week, DLG Group launched a three-year transformation program to enhance competitiveness and strengthen the core business to create a stronger and more modern company for the future. It will deliver significant efficiencies targeting EBITDA improvements of 1 billion DKK over the next three years, while 600 million DKK will be strategically reinvested back into the company to enable and sustain the transformation.
The new organizational setup is the first important step in enabling the transformation. It will enable maximization of scale and synergies, ensure more functional excellence and accelerate execution power and performance management through increased transparency, clear accountability and faster decision-making. In addition, the new organization will have great emphasis on the frontline of the business to strengthen the customer and owner relations.
“The new structure we are implementing is essential to the transformation we have initiated and will enable DLG Group to become more cost-efficient and future-proof, as well as ensure the Group acts more as one team towards the future. We are organizing our agribusinesses into one unit to capture our scale, drive efficiency, and accelerate best practices across markets. We are increasing focus on Vilofoss to enable growth and we are creating a stronger corporate center with a focus on driving excellence and delivering more value to the business. We will lead DLG Group in a new, more direct, and integrated way, focusing on stronger execution and improved performance management. In other words, we will run DLG more as a Group," says Group CEO Peter Giørtz-Carlsen and continues:
“I am also excited to announce my new leadership team and for the opportunities our new organization brings for my colleagues across the group. It offers them new ways to develop and grow as part of a winning team backed by the strength of a truly international company.”
DLG Group will be organized in four business groups - Agriculture, Animal Nutrition, Energy, and Housing – to leverage scale, increase effectiveness across borders and enhance innovation to grow the business.
By bringing its Danish, German and Swedish agribusinesses together in one strong unit, the Agriculture Business Group, DLG Group will be in a better position to drive commercial excellence and innovation, harvesting scale and synergies, and accelerating growth. Peter Kjær Jensen, former CEO of PostNord Denmark & Vice CEO of PostNord Group, will join DLG Group on 4 June as EVP for the Agriculture Business Group, bringing extensive experience in driving transformation that is important to bring DLG Group forward.
To maintain local proximity and increase commercial focus in the markets, the local businesses will continue to have full market responsibility while dialing up the commercial focus. They will work
closely with the global Agriculture organization to create greater scale and use best practices across markets. On 4 June, Anders Jeppesen Jensen joins DLG Group as the new Head of Agriculture in Denmark, while Carsten Klausen and Bent Nissen will continue to lead the agribusinesses in Sweden and Germany respectively. With the new structure, Bent Nissen will step down from the Executive Committee and fully focus on developing the Team Agrar business within the new setup.
The vitamin and mineral business, Vilofoss, will from now on be operated as a separate unit, the Animal Nutrition Business Group, to enable the Vilofoss brand to grow in more markets, lead innovation in specialities and operate more efficiently by using scale. It will be led by EVP Bøje Kjær, who previously had the responsibility for the Danish Agribusiness. Dennis Jørgensen, currently the Head of Premix & Nutrition, will continue as Head of Commercial Operations & Strategic Marketing.
To drive functional excellence and ensure scalability, all corporate functions will operate as one corporate center with a strengthened business partner set up to better support the business and improve performance.
In addition to his role as EVP for the Energy Business Group, Kevin Lorenzen will also assume the position of COO with responsibility for IT, Digital, Procurement, and Marketing. With his team, Kevin Lorenzen will implement a new global procurement organization and advance digitalization, both of which are crucial to delivering on the ReGen programme and unlocking significant value creation. Therefore, significant investments are to be made in IT, digitalization and procurement, focusing on both technology and capabilities.
Kevin Lorenzen will remain CEO of Team and continue to have the overall responsibility for the German organization.
A strengthened global Finance, Legal & M&A team led by CFO Christina Nielsen, is set to enable better decision-making and a strong business partner set up to enhance their role as strategic advisors to the business. It will establish a simpler and more analytical finance function that goes beyond traditional reporting to deliver forward-looking insights and thereby support business growth.