The highest turnover ever and the best result in a challenging year

 
2021 was a very good year for the Danish Agro group, which realised the highest turnover and best profit ever for the group.

Subsidiaries across all business areas have taken market shares and delivered solid results. That is very positive. Not least given the challenges of hacker attacks and corona, which put the organisation under pressure in 2020. It is good to see that, in 2021, all employees have again stood together with enormous commitment.

The strong result has been realised in a year with several commercial challenges, where, among other things, it is positive that we have managed to handle extraordinarily volatile markets. This has required a full focus on risk management. At the same time, supply security has been under pressure due to several factors, including corona, gas and oil prices and freight challenges. Here, we have also managed to ensure supply to our customers throughout the year.

2021 was also the year in which we met strong structural targets for the group and which will have a major impact on the group's further development. Our position in Denmark has been considerably strengthened by the acquisition of Himmerlands Grovvarer, which in 2021 was fully integrated into Danish Agro.

Financial results


In 2021, Danish Agro delivered excellent financial results even though it was a year marked by large price fluctuations in the market and logistical challenges due to the corona pandemic.

Profit before tax

The Danish Agro group realised a profit before tax (EBT) of EUR 87 millon, which is EUR 21 millon higher than last year. The result exceeds the group's budgets and targets for the year and is very satisfactory, not least in view of the significant volatility of prices during the year.
 

Turnover

The profit before tax was realised based on a record turnover of EUR 5.9 billion, which is 11.6% higher than in 2020. The increase in turnover is a reflection of a good harvest in terms of value in 2021 and volume and price increases of crops, fertilisers and raw materials. Also, the group’s sales of machines saw progress in 2021. Despite the logistics challenges due to the corona pandemic, the group has succeeded in ensuring the security of supply to our customers and maintaining our market shares.

Operating income

The Danish Agro group's operating income (EBITDA) reached the highest result of EUR 172 million, which is EUR 20 million better than in 2020. The excellent result shows that the Danish Agro group is strong with a healthy business and a positive development. The result is very much welcomed, as a good operating profit is a key objective of the group.
 

Balance

The total balance sheet was realised at EUR 2.7 billion against EUR 2.3 billion in 2020. This is primarily due to the generally higher prices for crops, fertilisers and raw materials, and logistics challenges associated with the corona pandemic, which means that orders have not been delivered and the stock levels are higher than budgeted. At the same time, in general, the stock levels have been higher than normal, precisely in order to increase the security of supply to our customers.
 

Equity capital and financial solidity

The group equity increased by EUR 57 million and amounted to EUR 774 million at the end of the year. The large increase in the balance sheet leads to a reduction in the financial solidity to 29.1% compared with 31.0% last year.

Profit distribution

Danish Agro's Board of Directors proposed the payment of EUR 17.2 million in profit distribution to the members.

Organisation diagram

See the organisation diagram for the Danish Agro group more than 100 subsidiaries in 2021. 
DOWNLOAD PDF

Key performance indicators

The group key performance indicators for 2021 shows the income statement and balance sheet along with the cash flow statement and selected key financial figures.
DOWNLOAD PDF

Annual report 2021

2021 was a very good year for the Danish Agro group, which realised the highest turnover and best profit ever for the group.

The Danish Agro group realised a profit before tax (EBT) of EUR 87 millon, which is EUR 21 millon higher than last year. The profit before tax was realised based on a record turnover of EUR 5.9 billion, which is 11.6% higher than in 2020. The increase in turnover is a reflection of a good harvest in terms of value in 2021 and volume and price increases of crops, fertilisers and raw materials.

Main objectives 2022

The Danish Agro group is financially strong at the start of 2022. Our focus will also be on the coming year to remain a competitive partner for the farmers with whom we work while being aware of a number of commercial challenges. In 2022, improving our financial ratios will be a major focus so that our starting point for further business development is the strongest possible. We need to meet the wishes and needs of the modern farmer while ensuring the balance between financial robustness and future business potential.

The commercial challenges were greater than usual in 2021, which is also expected to be true in 2022. As an example, we have experienced extraordinary volatile markets as well as increasing freight rates and energy costs, and the security of supply is continually challenged.

These factors are taken into account in the financial targets of the Danish Agro group for 2022. Therefore, we are budgeting with a group profit before tax, EBT, of EUR 67 million, which is lower than that realised in 2021, which is due to the unpredictable market conditions.

In 2021, we experienced a good level of activity, which has also resulted in increased market shares in a number of products. We expect this development to continue in 2022, and we see turnover for the year of around EUR 5.6 billion.

We also expect to increase the financial solidity to around 32%, which ensures a balance that allows for both the development of the business and the remuneration of our owners through profit declaration.