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Friday, February 13, 2015
Danish Agro, DLG see record results
Danish feed companies Danish Agro and DLG have released their latest financial reports.
In a statement of the financial performance in 2014 for the total group consisting of 70 agro-industrial companies in Denmark and abroad, Danish Agro says it achieved its best-ever annual results last year as the profit before tax increased 9.5 percent to DKK550 million (US$84.4 million) with revenues of DKK24.1 billion. The after-tax profit was DKK449 million.
More than two million metric tons of feed are produced each year at mills in Denmark and across Scandinavia and the Baltic Sea region controlled by the Danish Agro group. It is also co-owner of procurement company DLA Agro, which represents an additional production of 1 million tons of feed through its activities with other Danish, Swedish and Norwegian agribusinesses.
The 2014 trading year for the group was characterized primarily by a stronger position in its extended Scandinavia/Baltic region where it now ranks as one of the two largest agribusiness companies.
In October 2014, Dava Agravis International Holding, its joint venture with West Jutland co-operative Vestjyllands Andel and Agravis of Germany, was expanded by purchasing German farm supply business Getreide AG. The joint venture now covers grain and feedstuffs as well as engineering activities in Germany, the Baltic States, Poland, Czech Republic and Hungary. In 2015, it is forecast to reach a turnover of around DKK11 billion.
Danish Agro adds that 2014 was also a good year for the group’s feed specialities arm Vilomix, which recorded its best-ever annual results. Recently, Danish Agro and Vestjyllands Andel have increased their jointly owned shareholding in Finnish agribusiness group Hankkija Oy from 60 percent to 75 percent and agreed to take the remaining 25 percent of shares in January 2016. Hankkija Oy's business consists of trading of grain, compound feed, raw materials, seeds, crop protection, fertilizer, premixes and mineral mixtures. With an annual turnover equivalent to about DKK7 billion, it has a market share in Finland of 50 percent.
DLG of Denmark reports that it is not only Europe’s second largest agricultural operator and Denmark's ninth largest company in terms of revenue, it is also one of the five largest suppliers of complete feed in Europe. The agribusiness group in total has reported a turnover of DKK59.2 billion for 2014 with a profit of DKK1,503 million on ordinary activities (EBITDA). Group profit after tax excluding special items was DKK314 million, an increase of 20 percent compared with last year's profit of DKK262 million.
Its international supplier of vitamin-mineral premixes, Vilofoss, delivered 2014 results that were above expectations at a record DKK133 million before tax on a turnover of approximately DKK3 billion after significant progress in the German market and good results in Russia, Denmark and Sweden. In Denmark it trades as Vitfoss while the German arm is Deutsche Vilomix. According to DLG, its Vilofoss grouping is among the top three players in Europe in the lucrative market for vitamins and minerals. The enterprise has 19 factories in seven countries, plus two more being added in China in 2015 through a partnership in the Chinese premix and feed market with local company Puai Feed.