DLF reports record earnings for the financial year ending June 30, 2017.
Group EBIT totaled DKK 225.1 million (€26m), up by 11 percent compared with 2015 and 2016, and consolidated profit after tax of were DKK 160 million (€21m), an increase of 12 percent compared with the previous year.
The global seeds group reported a revenue of DKK 3.527 billion (€473m), which was in line with the previous year.
The strong operating result was affected by a strong sales effort combined with prudent production planning. Following a large over-crop for harvest 2015, the seed multiplication acreages of forage and turf seed were reduced in 2016. Consequently, inventories were been reduced, which in turn contributed to a strong cash flow in the Group of DKK 223 million (€30m).
CEO Truels Damsgaard points to several explanations to the financial result, “The result is achieved through a solid effort across all our Group Companies. Our customers are increasingly demanding products ready for sale when they leave DLF’s seed packing facilities. Sales of ready for sale products has grown by 28% in two years. Strategically, it is highly satisfactory, that sales of ready-made seed mixtures have increased more than sales in general.”
