Aviko achieves highest result ever in 2019

Aviko achieved its highest result ever for 2019. The producer of frozen potato products was able to translate the problems of potato cultivation into the market in 2018, Albert Markusse, CEO of Cosun, said on Thursday in the explanation of the annual figures.

Cosun never publishes the financial figures of the companies that fall under the group (Suiker Unie, Aviko, SVZ, Duynie and Sensus). It is therefore possible to guess at Aviko's profit. It is clear, however, that the French fries group has a large share in the members' bonus of €39 million and the net result of €20 million of Cosun. Suiker Unie and SVZ suffered losses in 2019, Sensus is struggling with pressure on the margin and only Duynie has a 'higher result'.

Right strategy
Markusse hinted that Aviko chose the right strategy for the sale of the 2018 crop, which was disappointing due to the drought. "Once it became clear that the harvest was going to be disappointing, Aviko did not enter into new contracts and bought a lot of potatoes. Only when we had certainty about raw materials did we enter into new contracts. That ultimately worked out well. Selling prices were higher. level."

Aviko also benefits from the worldwide growth in frozen potato products. This market is growing by an average of 4% annually, but Markusse also sees outliers of 10% in China, for example. The market there is also flat due to the outbreak of the corona virus. "Fries are eaten a lot in restaurants and they are now closed in China," explains Markusse. "We expect this to pick up somewhat in a few months."

Coronavirus slows down
Due to the corona virus, the purchase process of the company Hongyuan Louis, in which Aviko will take a 90% stake, has also been delayed. Markusse is counting on all formalities to be completed in the first half of this year. Hongyuan has a production capacity of 40.000 tons of chips per year. "We will soon be able to offer a mix of Chinese and European chips on the Chinese market through our sales office in Shanghai."

According to Markusse, flake producer Aviko Rixona also benefits from the worldwide growth in potato snacks. Aviko has started the construction of a brand new factory in Poperinge, Belgium. 

Aviko is now by far the largest company within Cosun in terms of turnover, with a share of 45%. Based on Cosun's annual turnover of €2,046 billion, this means that Aviko has a turnover of approximately €921 million. Suiker Unie follows with a share of 2% due to the low sugar prices of the past 23 years, the SVZ, Duynie and Sensus bring in the remaining 32% in turnover.

Eric the Thrush

Eric is a member of the editorial staff of Boerenbusiness. As a descendant of an arable family, farmer's blood flows through Eric's veins. He considers himself a generalist, but with a preference for economics, trends, markets and marketing.

e.delijster@boerenbusiness. Nl

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