Side 2
2 DLF AMBA ANNUAL REPORT 2023/24 ESSENTIALS LETTER FROM CHAIRMAN AND CEO STRATEGIC MILESTONES IN 2023/24 In the financial year 2023/24, the DLF Group achieved a revenue of DKK 8.2 billion and a EBIT of DKK 433 million. Overall, we are satisfied with our performance in the forage and turf business, especially considering the market and geopolitical challenges the year has presented. During the year, we announced two significant strategic steps: the acquisition of the Corteva alfalfa breeding program, and the decision to establish a joint venture in the sugar beet seed sector. As we reflect on the financial year 2023/24, we are satisfied with our adaptability and agility in the face of the complex business environment. We achieved a revenue of DKK 8.2 billion, in line with our expecta- tions. Although our revenue decreased by 7% com- pared to the previous year due to geopolitical factors, fluctuations in agricultural commodity markets, and lower yields in the vegetable seed business, our global platform, broad product portfolio, and strong partnerships have proven their strength in the face of significant uncertainties under the current macroe- conomic environment. several ways to restore a healthy market balance, but the only one we can influence is to adjust seed production and that is what we have done. Strategically, we made two significant decisions in 2023/24. We acquired Corteva Agrisciences™ alfalfa breeding program and entered into an agreement with Groupe Florimond Desprez to consolidate our sugar beet seed activities in a joint venture. For several years, it has been a strategic objective for DLF to achieve a globally leading position in alfalfa, and with this acquisition, we have reached that goal. We have achieved a satisfactory EBIT performance of DKK 433 million, which was driven by strong results in Greater Europe, Oceania, and a record high result for South America. The result was achieved in a market situation of an oversupply of forage and turf seeds following two years of high harvest yields. There are The establishment of the joint venture between the world’s second and third largest sugar beet seed com- panies is based on the recognition that it would be difficult for both parties individually to invest sufficiently in research and development to remain competitive in the industry in the long term. Denmark will become the first country to implement taxation on agricultural greenhouse gas emissions in 2030. The tax is a result of a broad alignment among government, farmers, industry, unions, and environmental groups, marking a major shift in Danish agricultural policy and addressing a key environmental challenge of our time. The use of our perennial crops can be applied as the solution to some of the challenges. Both the Board of Directors and Executive Managment Board are working on the next strategic plan towards 2027/28, which we look forward to presenting in the upcoming calendar year. The ambition is clear: DLF must continue to grow, and we must maintain our position as a global market leader in the forage and turf seed industry. Christian Høegh-Andersen Chairman of the Board Søren Halbye CEO
Side 3
The ambition is clear: DLF must continue to grow, and we must maintain our position as a global market leader in the forage and turf seed industry. DLF AMBA ANNUAL REPORT 2023/24 ESSENTIALS 3 Christian Høegh- Andersen, Chairman of the Board, and Søren Halbye, CEO
