Side 2
2 DLF 2022/23 CONTENT Record-high revenue in our jubilee year Financial highlights The world of DLF Our four global values Innovation & entrepreneurship Global synergies Environmental sustainability Empowerment Key function annual review Forage and Turf - Greater Europe Forage and Turf - North America Forage and Turf - Oceania Forage and Turf - South America DLF Beet Seed Danespo Jensen Seeds Research & Development Human Resources WE TURN SCIENCE INTO GROWTH 3 4 6 8 9 10 11 12 13 14 15 16 16 17 17 18 18 EDITORIAL DLF Communication Department DLF SEEDS A/S GRAPHIC DESIGN Lisbeth Eilenberger eilenberger.dk PRINT Stibo Complete 2500 pcs.
Side 3
DLF 2022/23 3 RECORD-HIGH REVENUE IN OUR JUBILEE YEAR The DLF Group achieved record-breaking revenue of DKK 8,756m in 2022/23. Despite challenges in the forage and grass turf market, the company achieved solid results. The chan- ge in the Group management did not affect the strategy, and DLF maintains its three focus areas: optimising its infrastructure to be able to serve its customers globally, promoting the green transition and delivering innovation. DLF Seeds A/S, the DLF AmbA Group’s operating company and direct parent company of DLF’s global business, celebrated its 150th anniversary on 16 December 2022. However, age has no detrimental effect on the company; if anything, quite the contrary! With a revenue of DKK 8,756m in the financial year 2022/23 we beat the record revenue of DKK 8,477m for the DLF Group the year before. We are also very pleased to have paid the Danish clover and grass seed growers a record-high gross settlement of about DKK 18,000 per hectare on average for the 2022 harvest – the largest harvest in the history of DLF. In 2022/23, the market for forage and turf grass seeds, especially in the Northern Hemisphere, was somewhat less favourable than in the previous year, when our North American company delivered exceptional results. Together with the other forage and turf grass seed businesses, it paved the way for a record-high revenue in the financial year 2021/22. It was not realistic that we would achieve yet another revenue of the same level in 2022/23. However, with EBIT of DKK 522m, we delivered a solid result for the financial year 2022/23, especially if we take the general weakening of the forage and turf grass seed market, strong inflation and potential salary increases into consideration. On the positive side, the beet and vegetable seed business and the South American forage and turf activities achieved higher revenue than the previous year, though this only partly offset the decline in the rest of the business. Even so, this underlines the robustness of our commercial span – in terms of both geography and product range. In 2022/23, the group management team at DLF welcomed a new CEO and CFO. For sixteen years, the former management gua- ranteed a growth strategy while delivering satisfactory financial results. The last five to six years in particular reflected large, strate - gic acquisitions, with revenue doubling from 2017/18 up to today. Gaining a new Group Management does not change our strategic Christian Høegh-Andersen, Chairman of the Board of Directors, and Søren Halbye, Group CEO priorities and benchmarks, but the aggressive acquisitive growth in recent years has prompted a need for introspection to ensure that we adapt our infrastructure to serve our customers globally while absorbing new growth efficiently. COVID-19 has impeded our internal streamlining; for example, consolidating new compa - nies on the Group’s ERP platform has been difficult with lockdowns in New Zealand. Nevertheless, we are accommodating the need to make DLF more scalable with a strengthened infrastructure in our growth strategy, which supports the green transition and climate adaptation by developing new solutions. Clover, grass, beets and potatoes are all species with a green DNA.
