07 February 2023, Sweden: ”Despite high economic uncertainty and a generally unstable external environment, Lantmännen delivered its highest result ever in 2022, and is proposing a record dividend of 1 080 MSEK to our members. A major reason for this is our broad business portfolio, in which some businesses have delivered stronger results while others have faced challenges. In 2022, the Energy Sector and Swecon Business Area have delivered their best operating income ever, while our Food Sector businesses were put under pressure,” says Magnus Kagevik, Lantmännen’s Group President and CEO.
Figures below refer to operating income adjusted for items affecting comparability. The previous year’s result in parentheses.
The Agriculture Sector’s result has increased compared to the previous year: 516 MSEK (374). The higher result was primarily driven by the Swedish agricultural operations. The result in the Finnish agricultural operations was lower than the previous year, due to a decreased result in the grain business. The result in Lantmännen Maskin has decreased, among other things due to the general decline in the machinery market.
The Energy Sector’s result amounted to 1 165 MSEK (615) – a significant improvement compared the previous year. The higher result was primarily due to a historically high ethanol price, as well as good production and sales in all businesses. The result has also been positively affected by the fact that Lantmännen since April is the sole owner of pellet company Scandbio, and by the contribution from the British company Coryton, which was acquired in February.
The Food Sector’s result amounted to 528 MSEK (850) – a significant decrease compared to the previous year. All businesses in the sector have faced great challenges in the shape of rising prices for raw materials, energy, and transports. Cost-based price increases towards customers have been carried out, but pricing lags impacted the sector’s result negatively and continued increases will be necessary.
The Swecon Business Area delivered a new record result: 593 MSEK (471). The supply of machines has continued to be limited, due to component shortages and difficulties surrounding freight and logistics, among other things. Despite this, Swecon’s sales have increased in all markets – in part driven by the high inflation. Aftermarket sales also developed positively, with strong demand for both service and spare parts.
The Real Estate Business Area’s result, excluding capital gains, amounted to 244 MSEK (279). The previous year’s result was positively affected by higher profit shares from partly-owned companies, and the high energy prices have impacted the result for 2022 negatively.
The Board of Directors proposes a refund and supplementary payment of 2,0 percent (2,5) on trade with Lantmännen Lantbruk Sweden excluding the fuel business; by 0,5 percent (-) for the fuel business – and a refund of 0,5 percent (1,5) on purchases from Lantmännen Maskin’s and Swecon’s Swedish operations. In total, refund and supplementary payment amounts to 374 MSEK (341). In addition, the board proposes a contribution dividend of 10 percent (10) on the nominal value of the contributions, in total 403 MSEK (362) – and a contribution issue of 303 MSEK (297). In total, the proposed dividend amounts to 1 080 MSEK (1 000). The board also proposes a dividend on subordinated debentures of 6,0 percent (7,25).
“The past year has challenged our businesses in various ways, but we have also received proof that we have a world-class strategy and world-class employees, who are able to manage uncertainty, risks, and challenges. It is very gratifying that Lantmännen is delivering its best result ever – which means that the board once again can propose a record dividend for our members. That is an important contribution to securing profitable and thriving Swedish agriculture and a robust Swedish food supply,” says Per Lindahl, Chairman of Lantmännen’s Board of Directors.
“Lantmännen stands firm. We have good finances, strong brands and committed members and employees in all parts of our operations from field to fork – all of which means we are in a strong and stable position for the future. We are well placed to meet the challenges we face, and to continue developing Lantmännen into the world’s best agricultural cooperative,” says Magnus Kagevik.
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