Last quarter 2016 and Aviko rescue annual result

Sugar prices, in the last quarter of 2016, and Aviko's earnings are the reasons that Royal Cosun's result turned out better than expected. This leads to virtually the same turnover as in 2015, but a higher operating result and net result.

On Wednesday, the cooperative announced to its members that it will pay a price of EUR 2016 per tonne for the 44,15 campaign for quota beet delivered. More than a euro more than last year. This applies to an average extractability and an average sugar content. In the 2016 season, a yield of 13,3 tons of sugar per hectare was achieved in the Netherlands. The beet price is made up of the minimum EU price, the members' bonus and sugar content and other settlements.

That is less than in previous years, but still good, partly in view of the less favorable weather conditions during the growing season. In the campaign, which lasted 109 days in the Netherlands, a total of 934.000 tons of sugar was produced from beets. In addition, a substantial amount of white sugar has been produced from raw cane sugar. The average financial yield per hectare for the grower in 2016 was EUR 3.317 (2015: EUR 3.301).

Consolidated turnover of 2 billion euros is at the same level as in 2015. The operating result rose to 77 million euros (2015: 59 million euros). The net result was considerably higher at 55 million euros (2015: 46 million euros), the increase being due to non-recurring results.

After a number of years of higher results, Suiker Unie can look back on a mediocre year. Given the small campaign in 2015, which resulted in higher costs, European sugar prices and low pulp prices, this was to be expected, the group reports. Turnover was at the level of 2015 and the result was lower.

Suiker Unie continues to focus on the cost price and is working on strengthening its market position within Europe. Partly in view of the disappearance of the quota by the EU. To this end, investments have been made in recent years in capacity expansion and market building. Scale also helps to keep the cost price low in the future. The sugar factories performed excellently throughout the campaign.

Excellent performance Aviko
Aviko did an excellent job in 2016, says Cosun. The company was able to respond well to the opportunities offered by the sales markets and has increased the efficiency of its activities. Aviko has effectively responded to the lower availability of potatoes and managed to achieve better sales prices. Both the sales mix and the sales volume of potato specialties and chips improved, also due to more exports. The granulate and flake activity (Aviko Rixona) also performed well in 2016. 'We see opportunities for further growth in our potato activities', it says.

Above average yield Sensus
Sensus showed a better result compared to the previous year. Production costs remained relatively low and margins increased. Sales in the US and Asia were lower, while sales in the European market increased. The 2016 chicory campaign went well, with above-average root yields and inulin levels.  

Disproportionate stock position SVZ
SVZ achieved a better result compared to 2015. This is due to higher margins in Europe, mainly due to a better product mix and more efficiency. The result in the US was depressed due to a mismatch in inventory positions. The demand for fruit juices is declining, while the demand for vegetable-based juices is increasing. This trend has continued in 2016.

Malaise livestock farming noticeable at Duynie
Duynie realized a lower result in 2016. The malaise in the livestock sector had an impact on the animal feed activity. The Novidon starch activity performed better, as did the part that supplies bio-digesters. The new business, focused on pet food ingredients, is developing well. CEO Robert Smith: 'Our choice for a portfolio with five core activities worked out well in 2016 in order to maintain the result, despite low sugar prices.'
 

Dutch beet harvest and beet sugar production

 

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