Danæg reports record profit, DLG hit by drought

Denmark-based egg producer Danæg Group achieved its best results in 2018, while the results of its DLG Group parent were adversely impacted by last summer’s drought.

Phongphan | Bigstock.com
Phongphan | Bigstock.com

Denmark-based egg producer Danæg Group achieved its best results in 2018, while the results of its DLG Group parent were adversely impacted by last summer’s drought.

Danæg Group reported its revenue up by 4.8 percent in the financial year to December 31, 2018, compared with the previous year, at DKK1.278 billion Danish krone (US$193 million).

For 2018, the firm’s profit (earnings before interest and taxes, EBIT) was DKK51 million — up from DKK43 million, or 28 percent, year-on-year.

These results were achieved despite challenging conditions in the market, according to Danæg Group’s CEO, Jann Dollerup Vig Jensen, and represent a fourth consecutive successful year for the company.

Jensen attributed the good results particularly to strong performance on the firm’s export markets, as Danæg strengthened its relationships with existing customers and attracted new customers.

A cooperative, Danæg Group has paid DKK20 million in dividends to its members in Denmark and Sweden based on its 2018 performance. Jensen credits the firm’s positive developments in recent years to its close cooperation with its members and parent organization, the DLG Group.

In 2018, Danæg acquired the assets of the Henriettelund packing company of Denmark.

Looking ahead, Jensen said the firm will continue to expand its exports, but also strengthen its position in its home markets in the Nordic countries, while focusing on improving sustainability throughout the value chain.

DLG Group: new board appointment, 2018 financial results

Danæg is part of the DLG Group, which has recently announced the appointment of a new chief financial officer (CFO). Previously CFO for Danish Crown Pork, Thomas Brebøl Christensen will take his place on the executive board this year. He will take over from Lars Sørensen, who is credited with a crucial role in the group’s recent success, but has decided to take a step back while continuing to support the board.

Christensen will join CEO Kristian Hundebøll and Chief Operating Officer Niels Søren Rasmussen on the group’s executive board beginning July 1.

The group’s financial results for 2018 published recently reveal a dip in revenue from the previous year at just under DKK45 billion. Operating profit was DKK886 million, down from DKK1.004 billion in 2017.

DLG Group has three main business areas: agribusiness, premix and nutrition, and energy and service.

The agribusiness division includes crop production, poultry and feed businesses in France, Poland, Lithuania, Latvia, Estonia and Finland, which are operated through the firm’s hubs in Denmark, Sweden and Germany.

Total revenue for this division of DLG in 2018 was DKK31.2 billion. Although the performance of most of the firm’s businesses in this sector was described as “strong,” operating profit was down 17 percent from the previous year as the result of a “historic drought,” which affected much of Europe last summer, and led to widespread and significant reductions in grain crop harvests.

These same conditions also reduced crop and pasture growth last year in countries as far apart as Ireland and Finland. The impacts continue to be felt by feed and livestock producers.

With a combined revenue of DKK3.0 billion, DLG’s premix and nutrition division comprises Vilofoss companies in Denmark, Sweden, Germany and France.

Total feed production by the firm in 2018 amounted to 3.9 million metric tons.

Joint venture in French pig feed sector

This year, Vilofoss formed a joint venture with family-owned ARC, which produces specialized feeds for piglets and chickens from a feed mill in the north of France.

While most of its production is sold on the domestic market, ARC also exports to Germany, the Czech Republic and Russia. The joint venture will have a 20 percent share of the French piglet feed market, making it market leader in this sector.

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