Press release: Record revenue and solid operating results at DLF
With a revenue of DKK 8,756 million and an EBIT of DKK 522 million in the fiscal year 2022/23, DLF presents a record revenue and the third-best EBIT in the company's history at today's Annual General Meeting. The sales of clover and grass seeds were overall lower than in 2021/22, and the operating results were affected by inflation and rising costs associated with the significant 2022 harvest
The group's revenue is reported at DKK 8,756 million in 2022/23. EBIT is reported at DKK 522 million, while the group's net profit amounted to DKK 334 million
Søren Halbye, CEO of DLF, is satisfied with the results in a challenging year:
"We come from some extraordinarily good years where there was a boom in the global forage and turf seed market. In 2022/23, the economic conditions changed with a slowdown in demand, especially in the northern hemisphere. Additionally, the seed industry, in general, had unsold inventories at the end of the season, and lower consumption meant that the distribution sector also had significant seed inventories."
Sales to agriculture and pro-turf customers have been less affected, whereas the consumer sales of grass seeds for private lawns have significantly declined. Rising costs and inflation have also impacted earnings, which nevertheless end up being the third-best in the company's history.
DLF Beet Seed experienced a decline in primary operations due to increased costs, while Danespo saw an increase in earnings in 2022/23 compared to the previous year. The vegetable seed business at Jensen Seeds was positively impacted by a larger production area compared to the previous year, resulting in a significant increase in earnings in 2022/23 compared to the previous year.
Søren Halbye sees DLF as well-prepared for the future:
"I am pleased that DLF has achieved a solid result in a year with many challenges. The fiscal year was challenged by an imbalance between supply and demand in the USA and Europe, and I am glad to note that our business in South America and Australia delivered better earnings compared to the record year 2021/22.
DLF stands on a strong economic foundation that is well-aligned both geographically and in terms of our business operations, with dedicated employees all over the world. Our presence with a complete value chain in Europe, North and South America, as well as Oceania, allows us to respond to local business opportunities. This is a strong platform for further developing the business."
About DLF
DLF is a global seed company owned by Danish seed farmers with more than 2,200 employees in 22 countries worldwide. It is the global market leader in forage and turf seed supplying seeds to more than 100 countries. DLF has a complete supply chain within forage and turf seed, sugar and fodder beet seed, seed potatoes and multiplication of vegetable seed.
For more information visit www.dlf.com and We turn science into growth, DLF 2022/23