FOOD Like much of the rest of the industry, the DLG Group’s Food business area has also experienced challenging market conditions. This affects the result for 2024, with both revenue and operating profit decreasing compared to last year. SALES 3 6.2 BN DK K EBITDA 1,510 MDKK COLLEAGUES 3,730 In 2024, activities in the Food business area were affec- ted by challenging market conditions such as volatility and declining livestock production. Also, large parts of Northern Europe were faced with tricky harvest conditions, impacting the DLG Group’s overall performance. Compared to the past ten years, the total European harvest was at its lowest level, while global crop production is estimated to be the second largest in history, second only to 2023. In DLG’s markets, the size of the harvest was negatively affected by a wet autumn, late planting of spring crops and fewer planted areas, while quality was generally at a high level. The Baltics, in particular, saw a boost in quality that pro- vided a good framework for a comprehensive export programme, while traditional importing countries such as Spain and Portugal had a good harvest, reducing their demand for additional import of crops. After two years of extreme volatility and historically high prices for agricultural products and energy, 2024 has seen a lowered price level, but still characterised by large daily price fluctuations. Following Russia’s invasion of Ukraine, the market for grain and raw materials has become much more complex in recent years. In general, more players are speculating on grain prices by taking large positions. Likewise, price development is increasingly driven by a wide range of external factors such as geopolitics, weather conditions, the global har- vest, the world economy and trade barriers. On a positive note, it has been another good year for the Group’s European rapeseed activities, the German busi- ness is starting to see the effects of the transformation, and the egg group, Danæg, realises a solid result for 2024. STRENGTHENED POSITION IN DENMARK Like the rest of the Group, the results of DLG’s Danish business in 2024 were affected by a smaller harvest and, consequently, reduced grain sales. The harvest itself was wet and long, and although we saw good quality, yields were below normal. On the other hand, the company managed to gain market share in sales to customers in the Danish domestic market. Among other things, targeted efforts have strengthened and increased sales of crop and livestock products. The fact that customers choose DLG and are satisfied with how we serve them was also confirmed in this year’s customer satisfaction survey, which for the second con- secutive year landed at a historically high level. It has been a good year for the crop farming area, where one of the key factors is a solid professional structure that fulfils customers’ needs for advice and keeps them in- formed on the latest knowledge in crop farming. Market share in this area is primarily won in connection with the sale of crop protection products, seeds and fertiliser. During the year, there has also been an increasing focus on new forms of cultivation, including regenerative agri- culture, where the DLG Group has taken the initiative to speed up the introduction to this cultivation method. Cultivation according to regenerative principles holds great business potential, which can also make an impor- tant contribution to the green transition. In autumn 2024, DLG hosted and organised a workshop together with the most important players in the value chain. The aim was to create a basis for accelerating development. DLG has also signed contracts with farmers and breweries for the DEVELOPMENT IN COMMODITY PRICES Euro/metric tonnes 1,200 1,000 800 600 400 200 0 2022 2023 2024 Wheat Rapeseed 25 Introduction – Results – Business areas – Introduction to ESG – Environment – Social – Governance – Accounting
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