November 05, 2008 - Despite the declining economy in 2008, Lantmännen continued its positive results growth in the third quarter. Most of the business areas had good results, while improvements in Lantmännen's product flow are progressing in line with set objectives. A powerful increase in sales took place particularly in the machinery and farming business areas.
In the period from January to September 2008, the Group’s net sales rose to SEK 32.3 billion (26.0), representing a 24 percent increase. Profit after net financial items was SEK 912 million (468). Excluding items affecting comparability, cumulative profit after net financial items was SEK 722 million (453).
The Group’s investments into the food company Lantmännen Cerealia, the frozen bread production in Lantmännen Unibake and Lantmännen Kronfågel have had continued success. Lantmännen Kronfågel had a strong increase in sales in both Denmark and Sweden, raising its operating profit by nearly 380 percent to SEK 110 million (23).
Unibake and Cerealia also demonstrated a stable, rising trend. The farming business area had good operating profits, at SEK180 million (107), as did the machinery business, with SEK 326 million (270). Good results were also produced by the operations in Lantmännen Invest and Svalöf Weibull.
It appears we can safely predict continued strong results from Lantmännen, despite the uncertainties of the financial markets and the declining economy. We have stable foundations on which to stand, and we will continue to invest in our prioritised business areas.
We will also work further on increasing the efficiency of our product flows, to prepare for a future recession,” says Per Strömberg, Lantmännen’s President and CEO. Some of the most important events in Q3 were the sale of Granngården, as an example of efforts to create a more streamlined and focused Lantmännen. The sale of Lantmännen Färskbröd to Fazer was announced after the end of the period.
“The progress Lantmännen has made this year demonstrates that we continue to work according to a clear policy of focusing operations on prioritised areas. This autumn, Lantmännen’s logo, with the sprout in the middle, as well as our product brands will be made clearer for consumers through an extensive marketing campaign,” Strömberg concludes.