The DLF-TRIFOLIUM Group increased sales by 23.5% to 1,281 million Danish kroner in the financial year 2000/01 ending 30 June 2001. The international grass seed market continues to be under pressure. However, DLF-TRIFOLIUM achieved a significant increase in sales and revenues. The group operating profit increased from 34.9 million Danish kroner in 1999/00 to 36.2 million Danish kroner in 2000/01. Year end profit stood at 13.7 million Danish kroner in 2000/01.
Shareholder’s equity increased from 322 million Danish kroner to 339 million Danish Kroner corresponding to approximately 40% of capital employed at 30 June 2001.
Biggest in Europe
The parent company, DLF-TRIFOLIUM A/S of Denmark, increased sales by 1,000 tonnes to 63,500 tonnes of Danish produced clover and grass seed of which more than 90% is exported.
Denmark accounts for 45% of the grass seed production in the EU. At the same time DLF-TRIFOLIUM handles 75% of the Danish production. This makes DLF-TRIFOLIUM the largest grass seed group in Europe.
The increase in sales is due in part to the acquisition of two companies and the formation of a joint venture outside Denmark in 2000/01.
In the United Kingdom DLF-TRIFOLIUM purchased 58% of the shares in Perryfields Holdings Ltd, one of Britain’s largest seed companies. Following the acquisition Perryfields Holdings merged with DLF-TRIFOLIUM UK & Ireland Ltd to become DLF-Perryfields Ltd. DLF-TRIFOLIUM now controls 78.4% of the shares in the merged company, which has a market share of approximately 40% of the UK grass seed market.
In the US DLF-TRIFOLIUM acquired all shares in the seed company Jenks Seed Connection in Oregon.
In France DLF-TROFOLIUM and Vilmorin Clause & Cie set up Top Green as a joint venture. By establishing Top Green the DLF-Group has gained better access to the turf market in Europe and especially in France. Vilmorin Clause & Cie is controlled by the Limagrain Group.
Market conditions to remain difficult
In their first year of operation as members of the DLF-TRIFOLIUM Group, all three companies have performed very well and have contributed to the positive results. Mr Benny Kirkebà¦kke Christensen, chairman of DLF AmbA and DLF-TRIFOLIUM, told the Annual General Meeting that the DLF-TRIFOLIUM Group expects revenues in 2001/02 to be similar to the previous year. Market conditions remain difficult but despite a pessimistic outlook for this year the order book looks satisfactory. Sales are expected to increase in Eastern Europe and China but increased exports to the United Kingdom are also expected. Due to continued surplus stocks of seed in the market, a lower year end profit is expected in 2001/02 compared to 2000/01.