Better result Nordzucker in uncertain times

The German Nordzucker closed 2019/2020 with a better result than expected. The operating loss of the second largest sugar factory in Europe was significantly lower than last year. Despite the corona crisis, the company expects to continue this trend.

Nordzucker saw its consolidated turnover increase by 6% in the past financial year to more than €1,4 billion. The operating result was minus €15 million, compared to minus €58 million in the previous financial year. The financial year ended with a net loss of minus €15 million, compared to minus €36 million last year. For the second year in a row, no dividend payment will be proposed to shareholders.

Costs reduced
Nordzucker attributes the improvement in operating profit to the revised sales strategy and streamlining of the organization. In addition, permanent cost reductions have been implemented. The majority stake of 70 percent in the Australian Mackay Sugar a positive contribution.

According to Nordzucker, a positive result in the current fiscal year 2020/2021 remains realistic, despite the uncertainties of the current corona crisis. Due to declining production in Europe and an expected worldwide shortage, sugar prices recovered in the past financial year. That situation changed with the corona outbreak. Sugar prices plummeted along with oil prices, while a larger sugar export is expected from Brazil.

Global consumption growth
“Due to the easing of measures, we currently assume that the effects of the corona outbreak on EU demand will be relatively small and that prices will remain largely stable,” said Lars Gorissen, CEO of Nordzucker. “Our aim is to achieve positive results again in the current financial year. We expect sugar consumption to continue growing worldwide after the corona-related decline has been overcome. And we aim to further expand our cane sugar activities.”

Jeanette Pennings

Jeannet has her roots in the flower bulb sector and she grew up on an agricultural company in the northern part of North Holland. As a generalist she reports for Boerenbusiness across all sectors. She is also exploring the possibilities of sponsored advertising.

j.pennings@boerenbusiness. Nl

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