DLG Group has made changes to its operating model and organizational structure. The new organization will enable the successful execution of its transformation program, ReGen, and bring the entire group closer together to fully leverage the potential of the DLG Group and establish a strong foundation for future value creation and growth.
DLG Group recently launched a three-year transformation program to enhance competitiveness and strengthen the core business to create a stronger and more modern company for the future. It will deliver significant efficiencies targeting EBITDA improvements of DKK1 billion (US$151.5 million) over the next three years, while DKK600 million will be strategically reinvested back into the company to enable and sustain the transformation.
The new organizational setup is the first important step in enabling the transformation. It will enable maximization of scale and synergies, ensure more functional excellence and accelerate execution power and performance management through increased transparency, clear accountability and faster decision-making. In addition, the new organization will have great emphasis on the frontline of the business to strengthen the customer and owner relations.
“The new structure we are implementing is essential to the transformation we have initiated and will enable DLG Group to become more cost-efficient and future-proof, as well as ensure the Group acts more as one team towards the future,” said Group CEO Peter Giørtz-Carlsen. “We are organizing our agribusinesses into one unit to capture our scale, drive efficiency, and accelerate best practices across markets. We are increasing focus on Vilofoss to enable growth and we are creating a stronger corporate center with a focus on driving excellence and delivering more value to the business. We will lead DLG Group in a new, more direct, and integrated way, focusing on stronger execution and improved performance management. In other words, we will run DLG more as a Group.
“I am also excited to announce my new leadership team and for the opportunities our new organization brings for my colleagues across the group. It offers them new ways to develop and grow as part of a winning team backed by the strength of a truly international company.”
New business groups to drive alignment and operational efficiency
DLG Group will be organized in four business groups – agriculture, animal nutrition, energy and housing – to leverage scale, increase effectiveness across borders and enhance innovation to grow the business.
By bringing its Danish, German and Swedish agribusinesses together in one unit, the Agriculture Business Group, DLG Group will be in a better position to drive commercial excellence and innovation, harvesting scale and synergies, and accelerating growth. Peter Kjær Jensen, former CEO of PostNord Denmark & Vice CEO of PostNord Group, joined DLG Group on June 4 as executive vice president for the Agriculture Business Group, bringing extensive experience in driving transformation that is important to bring DLG Group forward.
To maintain local proximity and increase commercial focus in the markets, the local businesses will continue to have full market responsibility while dialing up the commercial focus. They will work closely with the global agriculture organization to create greater scale and use best practices across markets. On June 4, Anders Jeppesen Jensen joined DLG Group as the new head of agriculture in Denmark, while Carsten Klausen and Bent Nissen will continue to lead the agribusinesses in Sweden and Germany respectively. With the new structure, Bent Nissen will step down from the executive committee and fully focus on developing the Team Agrar business within the new setup.
The vitamin and mineral business, Vilofoss, will from now on be operated as a separate unit, the Animal Nutrition Business Group, to enable the Vilofoss brand to grow in more markets, lead innovation in specialities and operate more efficiently by using scale. It will be led by Executive Vice President Bøje Kjær, who previously had the responsibility for the Danish Agribusiness. Dennis Jørgensen, currently the head of premix and nutrition, will continue as head of commercial operations and strategic marketing.
Strengthened Corporate Center to drive functional excellence
To drive functional excellence and ensure scalability, all corporate functions will operate as one corporate center with a strengthened business partner set up to better support the business and improve performance.
In addition to his role as executive vice president for the Energy Business Group, Kevin Lorenzen will also assume the position of chief operating officer with responsibility for information technology (IT), digital, procurement and marketing. With his team, Lorenzen will implement a new global procurement organization and advance digitalization, both of which are crucial to delivering on the ReGen program and unlocking significant value creation. Therefore, significant investments are to be made in IT, digitalization and procurement, focusing on technology and capabilities.
Lorenzen will remain CEO of the team and continue to have the overall responsibility for the German organization.
A strengthened global finance, legal and mergers and acquisitions team led by CFO Christina Nielsen, is set to enable better decision-making and a strong business partner set up to enhance their role as strategic advisors to the business. It will establish a simpler and more analytical finance function that goes beyond traditional reporting to deliver forward-looking insights and thereby support business growth.
