Main objectives 2023
The Danish Agro group has a strong position following a financial record year in 2022. Uncertainty within a large number of parameters, however, blurs visibility for the coming year. This affects the expectations for 2023.
In 2023, management of costs and risks will become very central in Danish Agro as sharply increasing interest rates, high energy costs and continued volatility on the markets are expected to characterise the year. At the same time, we will continue to seek growth options, so that we can deliver a solid result in 2023 to the benefit of our owners.
2022 was characterised by historically high prices for, among other things, crops and fertiliser, which contributed to ensuring an extraordinarily high top line. In general, 2022 was a year with very little adversity for the group. Particularly in our international agribusiness, we succeeded in translating the high prices into markedly higher earnings than before. That can be attributed to a strong organisation, efficiency and optimal risk management.
In 2023, the same tailwind cannot be expected on the market as in 2022, and the many impending uncertainties make their mark on the Danish Agro group’s financial objectives for 2023. Therefore, we are budgeting with group earnings before tax, EBT, of EUR 70 million, which is lower than what we realised in 2022.
In 2022, we experienced a large activity level, which has also resulted in increased market shares in a number of products. We expect this development to continue in 2023, and we see turnover for the year of around EUR 7.2 billion.That will be a decline from the extraordinary result in 2022, but still an increase of more than EUR 1.3 billion as against the 2021 level.
We also expect to increase the equity ratio to a little less than 32%, which ensures a balance that allows for both the development of the business and the remuneration of our owners through distribution of profit. Structurally, a focus area for the next year will be to obtain further synergies in the agribusiness area, including the merger of Hedegaard into Danish Agro. Also, there is much focus on the implementation of the new business and IT system AGRO365.