News Sugar
Cosun also sees a decline in results with sugar price
Cosun has booked lower results for 2024 than for 2023. According to the cooperative group, the decline is mainly due to lower sugar prices. It confirms the still great dependence on the volatility of the sugar market, according to Cosun.
In 2024, €3,4 billion in turnover was achieved, compared to €2023 billion in 3,7, a decrease of approximately 8%. The company's EBITDA (gross profit) (before member surcharge) amounts to €522 million. A positive result, but lower than the €670 that was achieved a year earlier (-22%).
The dynamics were great in 2024, according to Cosun, which had an impact on the yield in beet cultivation. Despite the good results in 2024, Cosun is not satisfied. "The impact of the turnaround in the sugar market was significant, with an increasing imbalance in supply and demand and a sharply falling sugar price. In addition, the weather had a major impact on the cultivation year, resulting in a low cultivation yield. As a result, the yield of our members is under great pressure. Despite the growth of our core segments, the relatively high inflation and weak economic growth remain a concern," said CEO of Royal Cosun Hans Meeuwis in a statement.
Chairman of the board of directors Arwin Bos adds: "Unfortunately, we are seeing a significant drop in sugar prices in Europe, which is reflected in the beet price. Combined with the worst beet harvest in years, this is resulting in disappointing returns for our members. However, we remain determined to further increase the return in sugar beet cultivation. In addition, we will continue to work with our members on innovative solutions and new market opportunities in a broader sense to maximise the value of our crops."
The group, with the companies Cosun Beet Company, Aviko, Duynie and Sensus, indicates that it will continue to fully commit to sustainable growth in plant-based solutions and an improvement of the earnings model for the members. Cosun wants to accelerate the growth strategy ('Unlock 30') and diversifies the portfolio. "In addition, we are making the chain more sustainable. We are also taking additional measures that are necessary for the intended structural improvement of results", according to Meeuwis.
Linda van Eekeres
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