In 2018, Landgard achieved a new record result with purely organic sales growth for the fifth year in a row. Despite again seeing very challenging general conditions and declining yields, there were again significantly better developments in general. Cold, wet and freezing spring days, as well as great heat and prolonged drought in the summer months, led to production-related losses, higher production costs, lower sales prices and lost sales in Germany and Europe.
The producer cooperative Landgard increased its gross sales in 2018 with organic growth to more than EUR 1.95 billion. EBT improved by more than 40 percent, to EUR 19.3 million. Both earnings before interest, taxes, depreciation and amortization (EBITDA) as an indicator of operating profitability and the operating result (EBIT) of EUR 53.7 million and EUR 31.2 million again exceeded the previous year's results *.
The positive development was supported by both business segments. The business segment of Flowers & Plants developed positively in 2018, despite extreme weather-related fluctuations and a century-long summer with extreme and prolonged drought, with a sales increase of 2.1 percent more positive than the market. This development results from the strategic orientation of the various business units, the accompanying service offers for customers and the consistent implementation of the product, marketing concept and licensing policy as an elementary component of the sales activities. In addition, the "Cash & Carry Futures Market Herongen" was reopened for the specialist retail business, which is an important part of the Flowers & Plants business segment.
Despite some very challenging weather conditions, the Fruit & Vegetable Business Unit in the past financial year saw a sales growth of just under 3 percent above the industry average. The division's sales once again exceeded the billion mark. Non-consolidated sales in the financial year amounted to approximately EUR 1,080 million (previous year: EUR 1,047 million).
The positive development of producer cooperative Landgard in the financial year of 2018 is also reflected in the further reduction of bank liabilities to just under EUR 200 million and the continuous build-up of equity due to the increased business assets of more than 3,000 member companies. The economic capital of Landgard eG increased to EUR 62.7 million, thus by EUR 9.1 million compared to the previous year.
"The positive development of Landgard is all the more gratifying, if we look at the development to the right and left of Landgard. We would like to thank all those involved for this development - our member companies, committees, employees, in particular our strategic customers and our financiers and partners. We should not forget that such results are only possible when we work together. As a responsible market leader, it is important to constantly deliver added value as a service provider in a zero-tolerance world. We are achieving this with our `Landgard, the Cooperative Marketing 4.0 in the Green Industry' strategy. Only with consistent implementation can we secure and further expand our responsible market leadership. The 'WIR' was and still is our focus and is the core of our modern cooperative activities," said Armin Rehberg, CEO of Landgard eG.
The annual report was initially presented to the representatives of Landgard eG during the 2019 Representatives' Meeting. Annual results, profits and strategy were presented to the representatives by the chairman of the supervisory board, Bert Schmitz, and the chairman of the board, Armin Rehberg.
At the meeting, Armin Rehberg also presented the future interest rate of 2.5 percent on the business shares for Landgard member companies as well as current projects. Examples include the new Landgard site in the north as a new hub of Landgard's overseas business with state-of-the-art Softripe ripening technology, the conversion and construction of the Landgard Cash & Carry market in Neuss, Landgard's position on the new Floritray reusable water pallet solution and the status of Landgard's generic promotional activities on flowers and plants as well as fruits and vegetables.
* The previous year's figures were adjusted due to the new follow-up financing and the key figures agreed there.
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