Annual Report 2024

Annual Report 2024the Group team presented DanHatch Group’s new strategy ’Hatching the Future’. The strategy combines a new business strategy approach with an integrated sustainability focus that has a balanced foundation based on the four Ps: People, Product, Planet and Profit. One of the core elements of the strategy is cohesion, as the Group will strengthen collaboration, cohesion and synergy across borders and disciplines in the DanHatch Group for the benefit of customers, partners and employees. INITIATIVES TOWARDS THE FUTURE OF BUSINESS As part of the work to strengthen our competitiveness, the DLG Group has initiated a process and made write-downs to adjust operations, which must be geographically and capacity-wise balanced with the markets we serve. This applies both in and outside Denmark, where an increased focus on costs and efficiency will pave the way for achieving our strategic goals. In the summer of 2024, Novo Holdings and the DLG Group entered into a strategic partnership to promote more sustainable agriculture and food production based on the opportunities in plant breeding. In the first phase, Novo Holdings will acquire 25% of the shares in Sejet Plant Breeding, a leader in agricultural in- novation and breeding programmes in plant breeding. The primary purpose of the partnership between Novo Holdings and the DLG Group is to expand Sejet’s current business and invest in new technologies to accelerate the development of new crop varieties. In addition, the aim is to increase Sejet’s market share in Europe. The DLG Group has also taken an important step towards future-proofing its production facilities by establishing solar panels at four factories in Denmark. In total, the locations in Skave, Tjele, Vrå and Bårse will establish solar panels covering more than 15,000 square metres. Solar energy can cover large parts of the factories’ electricity needs. This summer, the DLG Group announced a major invest- ment in the Argentinian soy mill Entre Ríos Crushing S.A. (ERCSA), which over the coming years will ensure a sig- nificant import of segregated deforestation-free soy to the Northern European market. The investment has been made in a close strategic partnership with the Argentinian agricultural cooperative, ACA, and is thus also the begin- ning on transatlantic cooperation between the two parties. TEMPERATURE OF THE NEAR FUTURE Weather conditions will continue to have an impact on the DLG Group’s performance in the future, where crop yields can have a positive or negative effect on our activity levels and earnings. Geopolitical unrest, continued high interest rates and trade barriers across continents do not seem to go away and will also be factors that could challenge market conditions. In addition, declining livestock production affects the demand for goods needed for livestock production, while the implementa- tion of the green tripartite agreement in Denmark will also play a key role in the future. We are also looking into commercial opportunities closer to our core business that could strengthen our compe- titiveness, secure growth and improve our performance both in the short and long term. We also expect that structural adjustments in our organisation and operating setup will have a positive effect on future results. 28 DLG ANNUAL REPORT 2024Side 27Side 29