The Lely Board of Directors has reported the financial results for 2015. Lely noted sales of €619 million. The company has steadfastly maintained its course nonetheless uncertain market conditions through adding value for customers and in its distribution channels.
The year 2015 was one with considerable changes in both the dairy and the market for agricultural machinery. The release of the milk quota in key countries in the important European market and more volatile global milk prices. Milk prices and quota had an impact on sales and the investment ability of farmers. In some regions of the world this was more tangible than in others. In North America we experienced a record order intake for the Lely Astronaut A4 milking robot. This was also driven by an uptake in Dairy XL projects for farmers with more than 500 cows.
Alexander van der Lely, CEO of Lely: “In line with our vision to create a sustainable, profitable and enjoyable future for farmers worldwide, in 2015 we have expended our presence in our new regions Brazil and Turkey. In servicing our customers we have established closer presence to them through our distribution channels.”
“To focus on our core activities in relation to the dairy sector, we have decided to separate the turf care business from Lely. Moving forward we will bring more customer tailored benefits to the market, among other with the recent introduction of option choices for the Astronaut milk robot. This is an example of how we want to support farmers in the choices they make in dairy farming, forage harvesting and energy.”
Looking at the market we expect that the effects of overproduction of milk and El Niño will have an effect on milk and feed prices in 2016. We are well positioned to guide and support our customers and distributors in challenging times with our solutions, including farm management services, whilst managing the Lely operations cost conscious and efficiently to secure future growth.