Lemken increased its sales by 25% to an estimated €559 million ($592 million) in 2022. The new year started with a high level of orders on the books.
“We were able to increase our sales and result once again, despite global supply chain problems and increasing rates of inflation,” said partner Nicola Lemken and CEO Anthony van der Ley as they presented the preliminary sales figures. Incoming orders have exceeded expectations. 2022 also confronted farmers with many challenges, but overall, farmers were able to use high producer prices to invest in professional agricultural technology, even though input prices had increased.
“We are currently already generating 80% of our sales from our export business and believe that there is potential for further growth as we explore new markets and target groups,” said CEO Anthony van der Ley. Products such as the new Karat 10 cultivator and new plough models have also driven additional demand.
In order to achieve its goals, Lemken is investing not only in a new facility in Dinteloord (manufacture of modern precision hoeing technology), but also the expansion of its Haren facility (assembly of seed drill technology) and its Excellence program (optimization of production and assembly) in Alpen. Another major contribution to the company’s success is to be made by the company’s acquisition of Equalizer, a South African specialist for precision seed drills with a focus on minimal tillage and no-till farming for large-scale farms.
During the past financial year, Lemken increased the number of its employees worldwide by 4.5% to 1,773.
The company expects that its positive business development will continue in 2023, based on the already high level of existing orders. While farmers will likely benefit from the ongoing positive market situation, European agricultural policy and the expectation of additional regulation in particular will create additional concerns for EU-based farmers compared to international producers.
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