Lely order book 'slightly better'
Dairy automation company Lely reported a 3.4% decline in total turnover last year but notes that sales are picking up.
This was despite volatile and unpredictable global scenarios – including the war in Ukraine – the availability of components and increasing energy costs.
Revenues generated by the sale of 40,207 tractors and harvesting machines, totalled €1,803 million, a growth of 22% - over the €1,481 million for 2021. This was 42% over the €1,268 million Euros achieved in 2019, the year before the Covid pandemic.
Earnings also hit an all-time high in 2022, reaching €199 million Euros or 11.1% - compared with 10.8% for 2021.
The company notes that the significant growth in turnover seen in 2022 is a consequence of the group’s focus on more technologically advanced tractors and greater penetration into non-EU markets, which now represents 37% of total sales.
Major technological upgrades to the existing range and the launch of new models in the high power segment have contributed substantially to the 24% in the average value of tractors sold. This is only partly attributable to higher sale prices driven by inflation (+10%), while in parallel with this production volumes also increased by 5%.
During the 2022 market year, SDF further consolidated its presence with the acquisition of a majority stake in VitiBot. The French company specialised in electric robotics and auto-guidance systems for vineyard applications.
During the same period, the company grew its workforce to 1462 in Italy (+9%) and 4462 globally (+7%). In 2022, €60 million was invested in research and development.
This represents a 3.3% of group revenues – focused on new products, digitalisation and new technologies for precision farming.
Looking at SDF’s markets, in Europe, revenues reached €1,132 million (+16% over 2021). Meanwhile, in China, market presence of the DEUTZ-FAHR brand has been further strengthened with the introduction of new mid-range models (50-90 HP) and more models up to 200hp. This helped to produce a 44% increase in sales over 2021, and revenues of €151 million.
In other non-European markets – such as Australia, New Zealand and North America – where import and distribution is overseen by the Morrinsville- based Power Farming Group, turnover reached a total of 326 million Euros, up 30% over 2021.
