Nordzucker AG: Continued positive performance in the first half-year

20-Oct-2016 - Germany

The Nordzucker Group, Braunschweig, can report good earnings overall in the first half of 2016/2017. Stabilized market prices and a positive trend in sugar sales, in particular, have led to greater revenues and a considerable year-on-year increase in net income.

The Nordzucker Group generated revenues of EUR833.1 million in the first six months of the 2016/2017 financial year. This represents anincrease of around 8 percent on the same period in the previous year (EUR768.4 million). The company also generated an excess amount of EUR37 million, having reported a loss of EUR0.6 million in the same period of the previous year.

The main reasons for the renewed positive performance were greater sales volumes and higher prices for quota and non-quota sugar. Income from animal feed and bioethanol, meanwhile, remained below expectations. Prices for these products are under considerable pressure, which has a corresponding effect on the margin.

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“We are delighted at this significant improvement in the earnings situation compared with the previous year, however we will continue to increase efficiency and to systematically and sustainably orientate the company towards the market and customers,” summed up CEO, Hartwig Fuchs, emphasizing that, “We are well positioned for open competition and will successfully exploit our opportunities for growth."

Thanks to the largely favourable growing conditions for the sugar beet, Nordzucker is expecting good yields for this year’s campaign. In many places, the harsh dry spell at the beginning of the campaign also presented particular challenges with harvesting, loading and processing, however.

In technical terms, all of the plants have made a good start to the campaign. “Our production is efficient and in line with market needs. After the successful reduction of our stocks, this year’s campaign, which will have an average of 110 processing days, will again be a lot longer”, added the CEO.

The Interim Report for the first six months covers all commercial activities from 1 March 2015 to 31 August 2016.

Nordzucker’s financial year runs from 1 March until the end of February.

The full Interim Report for the first six months can be found in the download centre at www.nordzucker.de.

Background

The Nordzucker Group, based in Braunschweig, is Europe’s second-largest sugar producer. The Group also produces bioethanol and animal feedfrom sugar beet. Eighteen production and refinery facilities across Europe form the technical, logistical and geographic basis for continued success. The Group’s 3,200 employees strive towards providing excellent products and services.

https://www.yumda.com/en/news/1149532/nordzucker-ag-continued-positive-performance-in-the-first-half-year.html