- 611M€ (-1%) turnover, in line with challenging internal plan; a solid performance under COVID-19 circumstances
- Turnover significantly impacted by shortage in component supplies, preventing double-digit sales growth
- Strong growth in consumables portfolio
- Order book for this year is very strong, components situation remains a challenge
- Progress made towards realising the ‘Lely Farm of the Future’
Steady 2021 performance
Today, Lely reports its 2021 annual results with a total of €611 million turnover (2020: €615 million). This performance is in line with forecasted plans and demonstrates Lely’s resilience and agility in challenging circumstances. COVID-19 continued to impact the business’ operations. In addition, the global component shortages resulted in additional challenging circumstances.
With a turnover result comparable to the previous year, Lely's profitability is also in line with the record performance of 2020. As a family-owned company with a long-term focus, the company invested 7% of its turnover into Research & Development.
Keeping focus in a changing environment
Andre van Troost, CEO of Lely, commented: “The past year has definitely thrown us some challenges. Both the pandemic and component shortages impacted our operations. By keeping a good focus on key projects we managed to achieve these solid results. I am proud of how our worldwide colleagues, customers and suppliers continued to adapt and support one another.
“We celebrated several achievements throughout 2021 such as the production of the 1,000th Vector automatic feeding system, the introduction of Lely Quaress udder care products and the implementation of Lely Horizon- our new farm management application. An important big milestone was the production of the 10,000th Astronaut A5, demonstrating the success and reliability of our milking robot.
“Progress has also been made towards realising the ‘Lely Farm of the Future’. This farm incorporates ‘circular solutions’ and operations are optimised to ensure an enjoyable, sustainable and profitable future in farming.
“We installed the fourth Lely Orbiter, an advanced automatic dairy processer on the farm and this is directly linked to the Lely Astronaut. This alows farmers to distribute dairy products straight from the farm to supermarkets and consumers, while at the same time, increasing business profitability and making local milk available for consumers. We look forward to overseas expansion of the Lely Orbiter this year in Belgium and Germany.
“In October 2021 our circular barn system, Lely Sphere, was officially recognised by the Dutch government, offering an important solution to the sector’s nitrogen challenges. This innovation reduces nitrogen emissions by more than 70%, converting the emissions into liquid circular fertiliser. During the next 12 months, Lely will undertake further efforts to bring this system to the market, and we call upon the Dutch government to support farmers in tackling the nitrogen challenges through innovation.”
To ensure that dairy farming continues to make a valuable contribution to the increasing demand for food supply in the future, Lely continues to invest in sustainable milk production. The company is close to finalising a programme through which it will commit to becoming CO2 neutral in its own operations by 2030. An action plan to achieve this ambition will be launched in 2022, together with the next steps on measuring and reducing CO2 emissions within our supply chain.
Strong order book development
Lely expects strong growth in 2022 with a very healthy order book, partly compromising 2021 orders moved to 2022 as a result of the component shortages. A positive contribution to the growing order book is the increase in the adoption of feeding and manure solutions as well as the consumables portfolio. Lely continues to see an increasing demand for dairy automation and digital farming across the world.
Outlook for 2022
Although the global component shortages remain an uncertain situation, Lely’s outlook for the future is bright. Related to the expected growth of the company, investments are being made in attracting new employees and real estate. This year will, therefore, see the opening celebrations of Lely Park in Pella (US) and the extended Campus building in Maassluis. This will allow Lely to deliver on its vision to secure a profitable, sustainable and enjoyable future for farmers.
Lely recently decided to stop commercial activities in Russia and Belarus, due to Russian's military invasion of Ukraine. Read the full statement here.
For more information about this release, please contact Esther Lelij - Senior Corporate Communications Specialist at Lely International NV: firstname.lastname@example.org, +31 (0) 6 8253 6989.