FOOD Overall, the DLG Group’s activities in the Food business area delivered positive results in 2023. REVENUE EBITDA COLLEAGUES 41.4 DKK BILLION 1,562 DKK BILLION 3,661 REDUCTION IN SCOPE 1 AND 2 EMISSIONS* 7% SHARE OF WOMEN IN MANAGEMENT POSITIONS 28 % LOST-TIME INJURY FREQUENCY RATE (LTIFR) 14 * Compared to 2019 2023 was an eventful year for the group’s activities in the Food business area, which posted satisfactory results for the year. While 2022 was an extraordinary year in many ways, in 2023 the market returned to a more normal level, despite some fluctuations. Our rapeseed and egg activities stand out especially, due to their impressive results, and at country level, the Danish and Swedish markets in particular delivered good results with satisfactory revenue and earnings thanks to well-run businesses and sound risk management. Total revenue in Food amounted to DKK 41.4 billion compared to DKK 50.3 in 2022, which is a slight decline of 18 %. Operating profit (EBITDA) amounted to DKK 1.5 billion. A STRONG YEAR IN THE DANISH DOMESTIC MARKET 2023 was a good and successful year for DLG’s Danish business, which in addition to strong financial results also achieved a historically high customer satisfaction score in the annual customer survey. In the rapeseed business, we realised a historically good result in the Danish market, which has been created with good business acumen, tight risk management and a strong focus on costs. It was also a great year in crop cultivation, among other things due to a strong professional setup that was not only able to fulfil our customers’ requests but also keep them up-to-date on the latest knowledge in the field of crop cultivation. Market share was also gained in the sale of seed grain, with our seed grain factories having a well-run and cost-effective production. The strong results in crop cultivation can partly be attributed to Sejet Planteforædling, which year after year develops new top varieties that are doing well on both the Danish and European markets. In the feed area, the effect of the continued decline in pig production was felt, but the area nevertheless managed to deliver good results. This is due to a continuous focus on costs and adjustment of production capacity, among other things. TRANSFORMATION OF GERMAN BUSINESS It has been an interesting and turbulent year in German Team Agrar (formerly HaGe), which changed its name and inaugurated a new head office in 2023. In 2023 the company also put a lot of effort into implementing new systems and more uniform work processes, including risk management procedures. As a result, Team Agrar is well-prepared for the years ahead thanks to its modern and efficient approach to the German market. The declining pig production in Germany also affected Team Agrar. The declining demand for feed was felt by Team Agrar’s feed business. On the other hand, it was a strong year in the crop cultivation area, with impressive sales of fertiliser, seed grain and crop protection products. A REALLY GOOD YEAR IN SWEDEN In the Swedish market, Svenska Foder saw a significant increase in earnings and delivers the best results in the company’s history and revenue of DKK 3.3 billion. The impressive results were achieved despite the harvest in Sweden reaching a 30-year low. A very well-run business ensured a good influx of new customers, and the company also managed to gain market share. The profitable business is also due to the fact that Svenska Foder has built up a strong brand over the years, which is known for products of very high quality. DIFFICULT HARVEST IN NORTHERN EUROPE The yield of the harvest in Northern Europe was approx. 25 % lower than in 2022, and spring crops in particular were affected by a difficult growing season. The drought in May and June and record rainfall in July were not favorable conditions for cultivated areas. A summer storm in Denmark caused yield losses because the crops in several places lost seeds and kernels before the harvest. 29 Creating the Future – Strong results – Our customers’ preferred partner – Creating value through sustainable solutions – Success through commitment and leadership – Consolidated financial statements
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