Group sales down, pre-tax profit 2019/20 higher than in the previous year.
The holding company Leipnik Lundenburger Invest Beteiligungs AG (LLI), which belongs to Raiffeisen, posted higher pre-tax profit in the 2019/20 financial year with declining sales. Like practically the entire economy, this group was also under the stress of the pandemic.
There is currently substantial investment in the milling business abroad, specifically in locations in Germany and Poland. The vending machine business suffers due to travel restrictions and home office.
In total, LLI sales fell by 3.8 percent to EUR 1.078.35 billion in the 2019/20 financial year. According to the company, earnings before taxes (EBT) increased by 29.7 percent to EUR 48.28 million.
The result is thus below the values that were achieved two or three years ago, which at the time was, however, due to one-off effects. Participations were sold.
CEO Josef Pröll sees LLI, with its two operational pillars, mills and cafe + co, positioned as sustainable and crisis-resistant. As is well known, LLI is the largest European flour producer. The GoodMills Group, headquartered in Vienna (sales: EUR 868.42 million, 24 mills in seven country organizations) reported a slight decline in demand from large bakers, but there was more demand for branded and packet flour as well as for Durum (pasta).
New production lines
The pre-tax result in this division grew by 15.8 percent to EUR 30.24 million. In Germany, the new mill in Krefeld will be completed in summer 2021. In addition, new production lines for couscous and bulgur as well as for high-protein flour are being built in this market. According to LLI, an expansion and modernization project for the mill in Kutno will also start in Poland this year with investments of EUR 21 million.
The vending business (machines) was affected by the restrictions of the corona crisis. Due to declines in travel with closed restaurants and hotels and less frequency at airports, train stations and rest stops and because of the home office in many companies, the consumption of vending machines has fallen sharply.
The turnover of the cafe + co group has thus decreased by 12.3 percent to EUR 209.93 million, and the division result has also declined. Cost saving programs are running here. In the coming months, however, new smartphone payment apps will also be rolled out for paying at coffee machines and the like.
