De Lage Landen Reports Positive Half Year Results
De Lage Landen said its performance in the first half of 2012 is in line with the positive results of last year. DLL said it will continue to invest in long-term relationships with its partners and drive toward a positive result at the end of the year, according to CEO Ronald Slaats.
DLL said it has grown its portfolio in the first six months of 2012 to €30.3 billion ($38.4 billion). New business volume amounted in this period to €9.9 billion ($12.5 billion). The company’s net profit resulted in €190 million ($247 million).
The growth of De Lage Landen’s global portfolio is mainly due to the performance of its vendor finance division. “Especially in the area of Food & Agriculture, but also in Construction, Transportation and Industrial goods we have seen good results. Growth rates have been achieved in the United States, but also in countries like Australia. We continue to diversify across our entire global network, with almost half of our business activity conducted in countries outside of Europe,” said Slaats, who also reported that the Rabobank Group subsidiary has managed to keep risk costs below the long term average.
In this light, Slaats explained the strategy to build long-term relationships with De Lage Landen’s business partners. “This ensures our international customers the support they need to see their revenues grow. Our global network continues to exhibit tremendous value to both our vendor finance customers and their clients, particularly in many of the emerging markets.”
Moreover, De Lage Landen said it has succeeded to manage its operational costs. “Close cooperation with our vendor partners results in more insight to their markets, and this benefits both of us. We are also working hard to optimize collaboration amongst our 5,400 employees, which contributes to our overall operational effectiveness and translates into better response time towards our customers,” Slaats said.