Lantmännen (LM) Tertial 2 2024 summary

Executive summary

• Achieved the second highest tertial/four-month result ever, with adjusted operating income of SEK 1,116 million for May–Aug 2024.

• Agriculture and Food Sectors delivered higher earnings year-over-year, while Energy and Swecon saw declines; Scan integrated as a new business area.

• Major SEK 1.2 billion investment in a new plant-based protein facility and launch of large-scale fossil-free food production.

• Swedish harvest expected to be larger than last year's weak crop but below the five-year average, with improved grain quality.

Financial highlights

• Net sales for May–Aug 2024 reached SEK 23.2 billion, up 7.3% year-over-year, mainly due to the Scan acquisition; Jan–Aug net sales SEK 44.79 billion, up 2.4%.

• Adjusted operating income for May–Aug 2024 was SEK 1,116 million (down SEK 80 million year-over-year); Jan–Aug 2024 was SEK 1,963 million (down SEK 144 million year-over-year).

• Net income for Jan–Aug was SEK 1,420 million, up from SEK 1,315 million year-over-year.

• Cash flow from operations declined in the second tertial, impacted by higher financial costs, taxes, and increased working capital; cash flow before financing for Jan–Aug was SEK -829 million.

Outlook and guidance

• Slightly below-average harvest will impact operations through the 2025 harvest.

• Continued focus on sustainable and productive farming, with new investments in plant-based protein and fossil-free production.

• Market remains cautious in machinery and energy sectors, with ongoing cost control and efficiency measures.

• Continued significant uncertainty in the global economy and geopolitics.