Biggest-ever turnover and best-ever profit in the machinery division
17/02/2021
Despite a challenging 2020 the Danish Agro group’s machinery division succeeded in achieving great financial results.
Despite a challenging 2020 with Covid-19, hacker attack and heavy competitive pressure, the Danish Agro group’s machinery division succeeded in achieving its biggest turnover and best operating profit to date.
“We have had a very satisfactory year with our machinery activities. Turnover increased to EUR 642 million, which is 23% higher than in 2019. Our operating profit (EBITDA) of EUR 18 million followed this development, and was EUR 8 million higher than in 2019. This excellent development is due partly to the integration of our acquired machinery activities in the Baltic and partly to organic growth across the 9 countries where we have machinery activities,” says Henning Haahr, Group CEO of the Danish Agro group.
The structure is in place
According to Henning Haahr, the positive development in the machinery division’s financial results is also an expression of the fact that the organisational structure in the machinery division is falling into place.
“Today we have machinery activities in 9 countries and are CLAAS’s biggest collaborative partner with exclusive representation of their products in 7 countries. In only a few years, we have built a strong, competitive market position in machinery, one we’re very satisfied with. In other words, the structure is in place, and in the upcoming years the focus will be on strengthening operations and synergies,” says Henning Haahr, and continues:
“We are very pleased that we chose to enter the machinery business eight years ago. There are many synergies between machinery activities and agribusiness activities, and our goal has been to help ensure that farmers have a professional, competitive setup for trading in and servicing machines - both now and in the future,” he says.
In 2021, turnover for the Danish Agro group’s machinery division is expected to increase to over EUR 675 million.
Currently, Danish Agro represents CLAAS in Denmark, Norway, Sweden, Finland, Estonia, Latvia and Lithuania, New Holland in Poland, and Fendt in the Czech Republic.