Last year potato processor Aviko was already struggling, but now it has worked. For the first time in Cosun's existence, not Suiker Unie, but another subsidiary, generated more turnover.
For Cosun, 2016 was all about maintaining balance in the various activities. 'The sugar market is a volatile market, while our other activities, including Aviko, Sensus, SVZ and Duynie, provide a basic result. We can count on this in periods with low sugar prices," said CEO Robert Smith on Thursday during the presentation of the Cosun annual figures.
The results in all activities have been growing for a number of years. There are no major fluctuations in this, says Smith. 'Aviko in particular has done very well. The market is good, but the internal improvement plans have also contributed to this.' The CEO is referring to the Fit for Growth plan, in which processes have been further optimized in recent years and a relatively modest expansion was implemented in 2016.
The result is visible. Aviko improved its results again in 2016. While Aviko still accounted for 2007 percent of the turnover within the group in 29, this increased to 2016 percent in 41. While Suiker Unie accounted for 39 percent of the total turnover of 2 billion euros last year. The remaining 20 percent is provided by Sensus, SVZ and Duynie.
'All our potato processing factories are full and running well. You see that the demand for products such as potato specialties and fries is developing further positively. Not only on the export market, but also in the EU.' A modest expansion will follow in 2017, but the larger investments will take place in Europe and China.
'China is important to us; it is a potentially large market that is growing rapidly. And we got in on time. Our turnover in China is still very modest, around 40 million euros (together with two joint ventures), but we are looking at how we can further grow in capacity there. It is important to have a good relationship and cooperation with local parties for the supply of raw materials and good contact with the government.'
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