The DLG Group achieved a record operating profit (EBITDA) in the first half of 2015, recording 7% growth and greater market share in its three core business areas - Farm Supply, Vitamins & Minerals, and Service & Energy.
In the first half of 2015, the Group achieved a turnover of DKK 29.3 bln and a profit before tax of DKK 9.8 mln. The EBITDA for the entire group increased by 5% to a record level of DKK 501.3 mln - DKK 24.9 mln more than in the same period last year.
The net profit of DKK -36.4 mln is satisfactory and DKK 34 mln better than the same period last year.
In the Farm Supply business, the DLG Group has achieved a sales growth of 9% in the main markets of Germany, Denmark and Sweden. In 2015, the Group also strengthened its involvement in the Baltics with Scandagra's takeover of the Lithuanian farm supply company Agrogimas. The DLG Group thus has improved its position in the Baltic countries.
Farm Supply activities in Denmark has developed extremely satisfactorily in the first half of 2015 with increased market share and better earnings for grain. Transport, logistics and production continues to improve efficiency, leading to significant cost savings. In a market characterized by very volatile crop prices, the Group's strong risk management has played an equally significant role. The farm supply activities in Germany delivered results in the first half of 2015 in line with last year. In Sweden, competition has increased and Svenska Foder has not met the expected level of earnings in the first half.
In the Group's Vitamin & Mineral activities, the first half of 2015 has been very satisfactory with an EBITDA increase of 18% in the Vilofoss group, a development primarily driven by the two largest markets, Germany and Denmark.
The Service & Energy area showed an EBITDA increase of 10%. In the first half of 2015, the energy area progressed well in Denmark, and the DLG Group established a partnership with DCC to strengthen DLG's position in the Danish market. The effects will be noticeable from the second half of 2015. In Germany, Service & Energy activities developed satisfactorily in the first half, and especially the DIY stores delivered good results. There were also improvements in the Land & Fritid retail chain where significant cost adjustments and changes in the organisation, shops and their product range have resulted in balanced accounts.
Kongskilde Industries gained market share but is challenged by a strong downward trend in the global market for agricultural machinery. The initial effects of the on-going turnaround process in Kongskilde launched in 2014 compensates for the market down-turn. Further cost-cutting initiatives have been implemented, most recently by moving production facilities from Sønderborg to Poland.
A satisfactory management of the balance sheet led to a decrease in net interest-bearing debt (NIBD) of DKK 97 mln. The Group's balance sheet ended the first half with a plus of DKK 21.6 bln. The equity ratio of 20.8% is 0.7% points lower than the same period last year due to the depreciation of Kongskilde in the end of 2014.
The Investment level is significantly reduced compared to the previous year and expected to amount to 1% of turnover in line with depreciations this year.
The DLG Group continually evaluates its businesses to ensure that they support the Group's strategy, create synergies and contribute with satisfactory earnings. This has resulted in the sale of two non-core businesses in DLG Food, European Freeze Dry and Samsø Syltefabrik, effective September 2015.
In order to increase the executive power and strengthen the cohesion across the whole Group, DLG expanded its Executive Board from two to four members in June, while two layers at group management level were reduced to one. In addition to CEO Kristian Hundebøll and Lars Sørensen as COO in charge of business strategy, the Executive Board now includes Kim Balle as CFO and Ole Christensen as COO with responsibility for Farm Supply.
The DLG Group expects a stable and positive development in the second half of 2015.
Copenhagen, 27 August 2015
EXECUTIVE BOARD OF THE DLG GROUP
| Kristian Hundebøll | Kim Balle | |
| Group CEO | CFO | |
| Ole Christensen | Lars Sørensen | |
| COO | COO | |
| INCOME STATEMENT FOR THE PERIOD 1 JANUARY TO 30 JUNE 2015 | |||
| 1/1 - 30/6 | 1/1 - 30/6 | 1/1 - 31/12 | |
| (DKK 1,000) | 2015 | 2014 | 2014 |
| Net turnover | 29,295,558 | 30,265,673 | 59,169,436 |
| Production costs | -27,263,872 | -28,146,673 | -54,491,089 |
| Gross Profit | 2,031,686 | 2,119,000 | 4,678,347 |
| Distribution costs | -1,608,182 | -1,571,637 | -3,328,976 |
| Administrative costs | -440,380 | -441,827 | -862,219 |
| Other operating income | 251,581 | 115,844 | 445,073 |
| Other operatinng costs | -43,263 | -39,667 | -95,851 |
| Operating profit before special items | 191,442 | 181,713 | 836,374 |
| Special items | 0 | 0 | -598,323 |
| Income from investments in associated companies | -2,630 | 4,242 | 9,422 |
| Income from other investments and securities | 61 | 9,954 | -14,332 |
| Net financial costs | -179,066 | -174,312 | -312,717 |
| Profit before tax | 9,807 | 21,597 | -79,576 |
| Tax on profit for the period | -7,456 | -57,433 | 1,649 |
| Group profit | 2,351 | -35,836 | -77,927 |
| Minority interest' share of the profit | -43,932 | -54,468 | -140,095 |
| Minority interest' share of tax | 5,214 | 19,928 | 32,562 |
| Net profit for the period | -36,367 | -70,376 | -185,460 |
| BALANCE SHEET, ASSETS AS OF 30 JUNE 2015 | |||
| 1/1 - 30/6 | 1/1 - 30/6 | 1/1 - 31/12 | |
| (DKK 1,000) | 2015 | 2014 | 2014 |
| Completed development projects & Acquired intangible fixed assets | 398,111 | 466,446 | 368,922 |
| Goodwill | 791,312 | 832,475 | 781,608 |
| Development projects in progress | 70,987 | 132,055 | 88,018 |
| Intangible fixed assets | 1,260,410 | 1,430,976 | 1,238,548 |
| Land and buildings | 5,337,918 | 5,371,748 | 5,288,285 |
| Plant and machinery | 1,947,544 | 1,905,603 | 1,964,248 |
| Other plants fixtures and operating material | 462,330 | 472,358 | 464,838 |
| Property, plant and equipment in progress | 298,298 | 334,093 | 264,412 |
| Property, plant and equipment | 8,046,090 | 8,083,802 | 7,981,783 |
| Investments in associated companies | 1,113,408 | 995,978 | 1,122,357 |
| Other securities and investments | 311,545 | 292,243 | 322,674 |
| Other receivables | 173,812 | 178,135 | 189,772 |
| Deferred tax assets | 318,479 | 170,535 | 257,981 |
| Fixed asset investment | 1,917,244 | 1,636,891 | 1,892,784 |
| Fixed assets | 11,223,744 | 11,151,669 | 11,113,115 |
| Raw materials and consumables | 2,509,788 | 1,336,217 | 1,222,553 |
| Manufactured goods and goods for resale | 1,844,092 | 3,126,047 | 3,253,821 |
| Total inventories | 4,353,880 | 4,462,264 | 4,476,374 |
| Trade receivables | 4,803,989 | 5,303,782 | 2,993,780 |
| Receivables from associates | 95,060 | 104,069 | 103,249 |
| Other receivables | 837,701 | 661,604 | 778,963 |
| Prepayments | 138,694 | 126,535 | 180,950 |
| Total receivables | 5,875,444 | 6,195,990 | 4,056,942 |
| Liquid assets | 137,162 | 116,760 | 108,169 |
| Total current assets | 10,366,486 | 10,775,014 | 8,641,485 |
| Total assets | 21,590,230 | 21,926,683 | 19,754,600 |
| BALANCE SHEET, LIABILITIES AS OF 30 JUNE 2015 | |||
| 2015 | 2014 | 2014 | |
| Membership capital | 901,531 | 923,547 | 920,943 |
| Revaluation reserve | 150,208 | 217,680 | 150,208 |
| Reserves according to the bylaws & Fair value adjustment | |||
| of hedging instruments | 1,676,180 | 1,779,301 | 1,645,100 |
| Proposed dividend and profit shares | 0 | 28 | 0 |
| Equity | 2,727,919 | 2,920,556 | 2,716,251 |
| Minority interests | 1,767,117 | 1,788,349 | 1,780,173 |
| Consolidated equity | 4,495,036 | 4,708,905 | 4,496,424 |
| Deferred tax liabilities | 390,797 | 380,367 | 364,964 |
| Other provisions | 412,871 | 454,955 | 413,457 |
| Provisions | 803,668 | 835,322 | 778,421 |
| Subordinate loan capital | 8,366 | 25,010 | 8,418 |
| Payables to mortgage credit institutions | 2,053,181 | 2,216,979 | 2,188,491 |
| Issued bonds | 1,000,000 | 1,000,000 | 994,355 |
| Lease commitments | 73,434 | 100,201 | 80,098 |
| Credit institutions, other | 953,188 | 778,598 | 610,702 |
| Other payables | 29,399 | 36,151 | 22,734 |
| long-term debt | 4,109,202 | 4,131,929 | 3,896,380 |
| Current maturities of long-term debt | 173,199 | 128,595 | 201,468 |
| Credit institutions, other | 4,055,331 | 4,140,000 | 2,897,634 |
| Prepayment from customers | 3,025,068 | 3,034,750 | 2,900,246 |
| Trade payables | 2,807,013 | 2,797,553 | 2,223,571 |
| Payables to associates | 90,073 | 109,843 | 126,249 |
| Corporate tax | 62,623 | 89,489 | 110,552 |
| Other payables | 1,866,614 | 1,852,052 | 1,945,377 |
| Deferred income | 94,037 | 73,235 | 169,860 |
| Short-term debt | 12,173,958 | 12,225,517 | 10,574,957 |
| Total debt | 16,283,160 | 16,357,446 | 14,471,337 |
| Total equity and liabilities | 21,590,230 | 21,926,683 | 19,754,600 |
| KEY FIGURES | |||
| 1/1 - 30/6 | 1/1 - 30/6 | 1/1 - 31/12 | |
| (DKK million) | 2015 | 2014 | 2014 |
| Net Turnover | 29,295,6 | 30,265,7 | 59,169,4 |
| Earnings before interest, tax, depreciation and | |||
| amortisation and special items / EBITDA | 501,3 | 476,4 | 1,503,1 |
| Operating profit before special items / EBIT | 191,4 | 181,7 | 836,4 |
| Profit before tax / EBT | 9,8 | 21,6 | -79,6 |
| Group profit | 2,4 | -35,8 | -77,9 |
| Net profit for the period / EAT | -36,4 | -70,4 | -185,5 |
| Balance sheet total | 21,590,2 | 21,926,7 | 19,754,6 |
| Equity ratio (percentage) | 20,8 | 21,5 | 22,8 |
| Consolidated Equity x 100 | |||
| Assets | |||
| Tangible equity ratio (percentage) | 15,9 | 16,0 | 17,6 |
| (Consolidated Equity - Intangible assets) x 100 | |||
| Assets - Intangible assets | |||
| DLG Telf. + 45 33 68 30 00 information@dlg.dk www.dlg.dk |