Global Agriculture

New record results for Lantmännen

08 February 2022, EU: ”Despite challenges in the market, for example in the form of the coronavirus pandemic and historically high prices for raw materials, energy and logistics, Lantmännen delivers the strongest result ever, and can once more propose the highest dividend ever to our members. We have a good position as a company, with a strong and broad business portfolio and a long-term stable strategy. I would like to extend special thanks to all our employees, who have dealt with another year of challenges in an exemplary way and managed to adapt the business to more difficult conditions,” says Per Olof Nyman, Lantmännen’s Group President and CEO.

The figures below refer to operating income adjusted for items affecting comparability. Last year’s results in parentheses.

The Agriculture Sector presents a low result than the previous year: 374 MSEK (439). The lower result is primarily due to higher raw material prices and lower grain volumes. All businesses in the sector have been affected by higher prices for input goods, energy and freight – among other things. Lantmännen Maskin continues to develop positively, and has significantly improved its result during the year.

The Energy Sector’s result amounts to 615 MSEK (530) – a sharp improvement compared to the previous year. All of the sector’s businesses have been impacted by higher input goods prices, but this has been this has been more than offset by strong production results and rising market prices, particularly for ethanol. Demand for ethanol is strong, and both production and sales are the highest ever.

The Food Sector’s result amounts to 850 MSEK (786). The higher result is largely thanks to a successful adaptation of production to changed conditions due to the pandemic, and a job well done towards customers. Sales in mainly food service is lower than before the coronavirus pandemic, but has increased compared to last year. All businesses are affected by higher raw material and energy prices, which has led to cost-based price increases towards customers.

The Swecon Business Area presents a strong and stable result: 471 MSEK (505). This is in spite of component shortages and difficulties regarding freight and logistics, which has limited the supply of machines during the coronavirus pandemic. The activity level for construction and infrastructure projects remains high, and the underlying demand for construction machinery as well as spare parts and service is strong. Demand for electric machines continues to increase.

The Real Estate Business Area shows a result, excluding capital gains, of 279 MSEK (223). The higher result is both due to higher operating income and higher profit shares from partly-owned companies.

The Board of Directors proposes a refund and supplementary payment of 2,5 percent (2,5) on trade with Lantmännen Lantbruk Sweden, and a refund of 1,5 percent (1,0) on purchases from Lantmännen Maskin’s and Swecon’s Swedish operations. In total, refund and supplementary payment amounts to 341 MSEK (305). In addition, the board proposes a contribution dividend of 10 percent (9) on the nominal value of the contributions, in total 362 MSEK (291) – and a contribution issue of 297 MSEK (306). In total, the proposed dividend amounts to 1 000 MSEK (902). The board also proposes a dividend on subordinated debentures of 7,25 percent (7,25).

“We have put another unusual year behind us – but despite challenges, the operations on farms and within Lantmännen has been able to be conducted and developed quite well. Among other things, this means that the board once again can propose the highest dividend ever to our members, in total one billion SEK. That is very gratifying, not least in view of the large cost increases that have impacted Swedish farming ahead of 2022,” says Per Lindahl, Chairman of Lantmännen’s Board of Directors.

“It feels reassuring to be able to state that Lantmännen’s position is more solid than ever before. After a record-breaking year in 2021, we are even better equipped for the future: we have a solid strategy, good positions in all business – and every opportunity to continue to develop a world-class company and a world-class Swedish agriculture sector,” says Per Olof Nyman.