To enhance the overall performance and secure the long-term development of the company, DLG Group has launched the most comprehensive transformation programme in its history. 'ReGen', as the programme is called, aims to deliver 1 billion DKK in EBITDA improvements over the next three years.
In response to continuous structural changes in the market and a significant need for internal optimization, the ReGen programme will improve DLG Group's competitiveness, strengthen the core business, and build a stronger and more modern company for the future.
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Peter Giørtz-Carlsen, Group CEO of DLG Group
In March, DLG Group initiated a thorough analysis phase to map out the potential of a transformation program. This has resulted in a full potential plan, which shows that the transformation program will deliver significant efficiencies targeting EBITDA improvements of 1 billion DKK over the next three years.
Over the next three years 600 million DKK will be strategically reinvested back into the company to enable and sustain the transformation. The investments will be focused on digital tools and systems to increase internal efficiency, new capabilities to drive performance and innovation, and new commercial opportunities to fuel future growth.
"Transformation is essential to future-proof DLG Group and secure long-term value creation for our owners. As our industries undergo significant structural changes now and ahead, we must take even more control of our own future by running a more simple, strong and frontline-focused business. Our analysis shows that there is significant potential to improve competitiveness by fully utilizing scale and synergies within the group, implementing best practices and operating with greater transparency and foresight to leverage strategic opportunities in the market. It is clear that to be successful and competitive we need to do things differently going forward," says Group CEO Peter Giørtz-Carlsen.
A full-scale transformation across business areas and geographies
The transformation program will span across geographies and business areas, covering activities throughout the entire group from procurement and trading to production and logistics. The objective is to unlock the full potential of the group by enhancing simplicity and efficiency, setting the organization up for success to enable productivity and performance, improving working capital to fund the journey, as well as harvesting synergies and economies of scale across the group.
"In recent years, the changes on the outside have happened faster than on the inside of the company. What we are initiating now is therefore a full-scale transformation to create the DLG Group of the future. We will modernize the way we run the business, significantly improve our competitiveness, strengthen our commercial muscle, and bring the group closer together. It will enable more stable profit declarations for our farmer-owners and at the same time give them a new and stronger DLG Group for the future. For the colleagues, we are creating an even more inspiring place for them to work with new opportunities to grow and thrive," says Peter Giørtz Carlsen and continues:
"ReGen is not only a cost-cutting exercise, but a transformation where we increase the value of what we do. I am proud of how colleagues are coming together from across the business to create the future DLG Group, and I look forward to what we will achieve together," says Peter Giørtz-Carlsen.
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Contacts:
Lasse Hørbye Nielsen, Lasse Hørbye Nielsen, Media Relations
M +45 24795059 lassni@dlg.dk
