Swedish food group Lantmannen has posted a jump in third-quarter profits thanks to cost cuts, which helped offset falling earnings from its food business.

Lantmannen booked underlying profit of SEK431m (US$65m), up 40.8% on the year, as operating profit from agriculture more than doubled, rising from SEK49m to SEK106m.

CEO and president Per Stromberg cited Lantmannen’s “powerful savings programmes” for the result.

Lantmannen also rising profits from its machinery and energy division but profits from its largest business, food, fell 31.8% to SEK219m.

The group said higher raw material prices had squeezed margins at its Lantmannen Unibake arm while a weak flour market was hitting its Lantmannen Cerealia B2B unit in Denmark.

The company, which issued its third-quarter profits on Thursday (28 October), did not publish sales figures.