15 January 2015
Third quarter: Revenues and earnings fall sharply
Measures to improve efficiency initiated
In the first nine months of the 2014/2015 financial year, Nordzucker generated revenues of EUR 1,457.6 million. As a result of significantly lower prices and somewhat reduced sales volumes, this was well below the revenues of EUR 1,849.7 million for the previous year.
Sinking prices for quota and non-quota sugar in particular meant that net income for the period also declined from EUR 257.8 million to EUR 74.4 million.
CEO Hartwig Fuchs explains with regard to the market: “The ruinous competition for markets and customers in the EU is continuing. At the same time, we are unable to export high quantities of stock, while the EU continues to allow high imports into Europe. This policy is now reflected in the market prices.” As a result, Nordzucker expects an exceedingly challenging forthcoming financial year that could lead to a negative net income for the period 2015/2016. Even if the price development has presumably reached its lowest ebb, there still won’t be a noticeably positive influence on the result before 2016/2017.
“We will immediately start to significantly cut costs. That is why we have launched a new efficiency programme which drives this process throughout the Group,” continued Fuchs. In addition, investments have been postponed and the area under cultivation for the coming campaign has been reduced after close consultation with the beet farmers in order to prevent surplus production of sugar which is unmarketable.
“We are undoubtedly facing an extremely challenging year. Our solid financial policy of the past, coupled with the repayment of all our debt, leaves us in a position to actively shape this next phase.” Nordzucker is sticking to its internationalisation and growth strategy and will continue to examine future investments.
Nordzucker’s financial year begins on 1 March and ends on 28 February.
The interim report for the first nine months covers all commercial activities from 1 March 2014 to 30 November 2014.
The full interim for the first nine months can be found in the download centre at www.nordzucker.de.
The Nordzucker Group, based in Braunschweig, is Europe’s second-largest sugar producer. The Group also produces bioethanol and animal feed from sugar beet. Eighteen production and refinery facilities across Europe form the technical, logistical and geographic basis for continued success. The Group’s 3,300 employees strive towards providing excellent products and services.
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