With a revenue of 3.565 billion danish krones (479 million euros), DLF presented the financial result and annual report at the group’s annual general meeting on Oct. 25. Revenue increased by 5 percent due primarily to increased sales by volume in Western Europe, North America and New Zealand.
Group earning before interest and tax totaled 201.3 million danish krones (27 million euros), up by 27 percent compared with 2014-15, and consolidated profit after tax of were 132 million danish krones (18 million euros), an increase of 29 percent compared with the previous year.
The interest-bearing debt was reduced by a total of 164.8 million danish krones (22 million euros), as result of a strong operating cash flow and a reduction of inventory.
CEO Truels Damsgaard point to several explanations to the financial result.
“The result is achieved through a solid effort across all our Group Companies,” Damsgaard says. “We are pleased with the fact, that our seed business can present growth in both revenue and volumes in a flat market.
DLF had relatively higher growth rates in North America and New Zealand than in Europe, and we experienced a positive trend in our market share in several important markets. Prices were reasonable in the wholesale market, on level with last season in Europe and slightly lower in North America.”
The economy of dairy farmers was under pressure and their willingness to invest decreased all over Europe, and that affected the potential sales of forage seed. However, the increased sales of turf seed counterbalanced the reduced sales of forage seed and resulted in an overall increase in the European sales.
In North America, sales of forage grasses saw healthy growth and turf grass sales were higher than last year.
