The difficult dairy market is blamed for the 3.4% drop in Lely turnover of €857 million last year (€888 million in 2023).
“2024 was a tough and challenging year for us and we are not surprised by the slightly lower results,” comments André van Troost, CEO of Lely. “The ongoing uncertainty in the agricultural sector globally, in combination with stricter regulations, increased production costs and low but gradually improving milk prices is making farmers hesitant to invest.”
The revenue decline reflects the global political uncertainty for dairy farmers and the agricultural sector in general. The good news is that the market showed more resilience in the final three months of last year, bouncing back to normal sales levels.
Mr van Troost expects this year to be quite challenging, but added that the order book is slightly better than last year. “In addition, we see higher milk prices and signs of declining interest rates for farmers.”
Something that did not change last year was the continued global increase in the adoption of robotics and data. Lely predicts the long-term outlook for both remains bright.
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