Nordzucker Post 3/2024 - 25 July 2024
Lars Gorissen: Well equipped for further development under changing conditions
Dear readers,
At the Annual General Meeting in early July, we officially closed the 2023/24 financial year, the second-best in the history of Nordzucker AG. Whether revenue, EBIT, net income or profit margin – all relevant key figures have increased significantly. We are therefore entering the new financial year stronger and with momentum and can consistently continue our investment and growth course. We will invest more than 300 million Euro in the decarbonization of our factories as part of our GoGreen program; another approximately 100 million Euro are earmarked for the new Plant Based Ingredients business area. Both the Supervisory Board and our shareholders have clearly confirmed our course.
Our pleasure at what we have achieved does not, however, cloud our realistic view of the present and the near future. A key driver of the exceptionally good result was a higher price level for sugar compared to the previous year, which more than compensated for the cost increases for raw materials, energy supply and logistics. Nevertheless, prices on the sugar market are currently trending downwards; a development that was to be expected in the volatile sugar market and does not surprise us. The reasons for this include a general reluctance on the part of consumers to buy increased sugar production in the EU and imports from Ukraine. Despite this, we are convinced that even in a weaker economic environment and lower sugar prices, we are well equipped to expand our market position and successfully develop the company – with foresight and with a sense of proportion.
In this situation, it is also our responsibility not to produce more sugar than we need. Many of our growers have subscribed to free quantities for the 2025 cultivation year. We are pleased with the high level of willingness to grow beet. However, the total quantity subscribed significantly exceeds our requirements. We have allocated the free quantities as in previous years, i.e. depending on the planned capacity utilization of the factories and optimizing freight costs. We very much regret that, as a result, we have to decline quantities even at very short distances from some of our factories.
A stable financial situation and the various excellence initiatives are helping us to continue on our path to becoming a sustainable and profitable company. The good first quarter confirms the assumption that we will also be able to achieve a good level of earnings in this financial year despite the downturn in the sugar market.
Our goal remains to grow sustainably, in line with the interests of our partners along the value chain. We focus our thoughts and actions on sustainability and invest when we are convinced that this is the right path for all parties. To this end, we work hand in hand with our employees, growers, customers and suppliers and make sustainability an integral part of our business.
Best regards, Your
Lars Gorissen, CEO
