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Danish Agro reports record results, board changes

Reporting its largest turnover and profit ever in 2016, Danish Agro says it is sixth in the ranking of firms in its sector in Europe. The group has also announced the appointment of a new CEO and an acquisition in Poland.

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Reporting its largest turnover and profit ever in 2016, Danish Agro says it is sixth in the ranking of firms in its sector in Europe. The group has also announced the appointment of a new CEO and an acquisition in Poland.

Based in Denmark, the firm is a cooperative, with a focus on the sale of livestock feeds and feed ingredients, fertilizers, crop protection products, seed and energy. It also purchases crops from farmers, distributes farm machinery, and runs a chain of hobby and leisure retail outlets. In addition to its home market, Danish Agro has businesses in Finland, Sweden, Norway, the Baltic States and Poland, and it has begun activities in Asia.

In 2016, the group’s turnover increased by more than 10 percent over the previous year to reach EUR4.2 billion (US$4.5 billion), despite lower prices and harvests. Pre-tax profits were up by almost 4 percent to EUR84 million (US$91 million). Danish Agro attributes the growth to increased turnover by its German-based operation, Ceravis AG, and to its acquisition of Sweden’s Kalmar Lantmän, which was approved in February 2016.

“2016 was a difficult year for many farmers at home and abroad, and Danish Agro had to react to an industry under pressure, facing difficulties on many markets,” said Danish Agro’s CEO, Christian Junker. “Some of the group’s subsidiaries also had problems achieving profit last year, given which, I find it very positive that we achieved the financial targets we had set. We are now in a strong financial position, providing a springboard for future development.”

Looking ahead for 2017, Danish Agro group says it will continue to focus on expanding its machinery sales in Denmark, Norway and Sweden. With costs expected to run ahead of earnings for this business, and further restructuring of the German agribusiness market ahead, the firm expects a small dip in pre-tax profit in 2017 on slightly higher turnover.

As the firm’s annual results were published, Danish Agro announced that its Group CEO, Christian Junker, has decided to step down in September 2017, and that he will be succeeded by his deputy and Group Chief Financial Officer Henning Haahr.

Premix company acquisition in Poland

Last month, Danish Agro said its Polish operation, Vilomix Holding, had acquired the majority of shares in feed premix company Blattin Polska.

Founded in 1996 by Bayer AG and subsequently becoming a subsidiary of Agravis Raiffeisen AG of Germany, Blattin Polska produces mineral feeds and concentrates and a nationwide sales organization. It has two factories – one at Siedlec in the southeast of the country, and a new facility at Ostroleka, near Warsaw.

Founded as a local co-operative in 1901, Danish Agro group now has 4,500 employees and is co-operatively owned by 10,500 Danish farmers. Its parent company is Danish Agro a.m.b.a.

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