DLF - Important strategic goals achieved in 2023/24

Date:11-01-2024

With a revenue of DKK 8.2 billion and an EBIT of DKK 433 million in the 2023/24 financial year, DLF presents results in line with expectations at the Annual General Meeting in Nyborg. The result within the forage and turf seed business are satisfactory, especially considering the market and geopolitical challenges faced throughout the year.

The group achieved satisfactory EBIT of DKK 433 million, driven mainly by solid results in Europe and Oceania, alongside a record year for South America. This performance was realized in a market characterized by an oversupply of forage and turf seed following two years of high crop yields in 2021 and 2022. Additionally, the seed industry generally held large inventories, which, combined with lower consumption, led to significant seed inventories at the distribution level. DLF has focused on maximizing all sales opportunities and adjusting its seed production to restore a healthy supply balance. 

Søren Halbye, CEO of DLF, is satisfied with the performance in this challenging year: "We have delivered strong operating earnings; however, rising financial costs have impacted our post-tax results. DLF stands on a solid financial foundation with a well-balanced geographic and business presence and dedicated employees worldwide. Our fully integrated value chain across Europe, North and South America, and Oceania enables us to capitalize on local business opportunities, providing a robust basis for further development."

Søren Halbye highlights some of the strategic milestones achieved throughout the year: "We have acquired Corteva’s alfalfa breeding program and we entered into a joint venture with Groupe Florimond Desprez regarding our sugar beet seed activities. For several years, it has been a strategic goal for DLF to achieve a global leadership position in alfalfa, and with this acquisition, we have reached that goal. The joint venture between the world’s number two and three in sugar beet seeds acknowledges that significant investments in research and development are necessary to remain competitive in the long term. Our ambition is clear: DLF must continue to develop, and we will strengthen our position as the global market leader in forage and turf seed."

The sugar beet seed business maintained stable revenue despite geopolitical restrictions, with increased sales in countries such as Poland, France, and Turkey. The rapeseed business in Denmark returned to normal revenue levels after an exceptionally strong year in 2022/23. The vegetable seed business at Jensen Seeds was negatively impacted by adverse weather conditions and low yields, particularly in Danish spinach seed production, which put pressure on both revenue and earnings.

About DLF DLF is a global seed company owned by Danish seed farmers with 2,145 employees in 22 countries worldwide. It is the global market leader in forage and turf seed supplying seeds to more than 100 countries. DLF has a complete supply chain within forage and turf seed, sugar and fodder beet seed, seed potatoes and multiplication of vegetable seed.

You can read the full DLF Annual Report 2023/24 here