Owner value for over 100 years

Lantmännen’s assignment is to contribute to the profitability of its owners’ farms and optimize the return on their capital in the association. As business partners and owners of Lantmännen, they share the Group’s profit through dividends.

Where are earnings created

Lantmännen consists of farming operations and extensive commercial and industrial activities including mills, bakeries and machinery operations. Most of the earnings are generated in the industrial activities. It is clear to see the advantages to Lantmännen of integration along the value chain and supplementing the agriculture-related operations with industrial activities. In this way, owners share in a higher margin and growth further along the value chain and in other industrial activities. The generated earnings are distributed to the members according to Lantmännen’s dividend policy. Refunds and final price adjustments are based on earnings from contribution-based agriculture operations. Contribution dividends and contribution issues are primarily based on earnings from operations that are not contribution-based, such as food, energy, property and some areas of the machinery business.

Dividend policy

The principles for dividends are set out in the dividend policy adopted by the Board. It is the Group Board’s aim for Lantmännen to generate regular and stable dividends for its owners over time in the form of refunds and final price adjustments, contribution dividends and contribution issues. The Group Board’s overall intention is that the dividend level will be adjusted to reflect factors such as financial position, earnings, cash flow, strategic investment needs and expected profitability. A member since 2001 will have had a share in dividends of SEK 4 billion from Lantmännen.

Trading in contribution issues provides opportunities for more active ownership.

Lantmännen has distributed more than SEK 4 billion to its members since the merger in 2001. A total dividend of MSEK 432 is proposed for 2015. The high dividend proposal is based on Lantmännen’s strong financial position and development in Lantmännen Lantbruk Sweden.