German sugar refiner Nordzucker has reported an operating profit of €81 million in the first nine months of its financial year.
The company attributed this growth to price recovery in the EU, as well as a comprehensive and consistently implemented cost-cutting programme.
Sales increased from €1.1 billion to €1.3 billion, compared to the same period last year.
CEO of Nordzucker, Dr Lars Gorissen, explained, “We are very content with the development on the market and with the fact that our measures have taken effect so fast and effectively. Now we have to look ahead.
“The market will continue to be characterised by volatility. Programmes to reduce costs and optimise our processes will further accompany us.”
The company expects a “significantly positive result” for full-year 2020/21.
Sugar Beet Campaign
Nordzucker has completed its sugar beet campaign in almost all countries, while beet processing is still ongoing at the Örtofta plant in Sweden and Nykøbing in Denmark.
The company expects to process more than 16.6 million tonnes of beet at the end of this year’s campaign across all 13 European plants, up from 15.7 million tonnes last year.
Axel Aumüller, COO, said, “We are very pleased and grateful that the health protection measures implemented during the campaign have been effective.
“The responsible behaviour of our employees made a significant contribution to the relatively few infections among our staff. Our special thanks go to our colleagues in this respect.”
In Australia, the sugar giant processed more than 5.1 million tonnes of sugar cane.
Lack Of Rainfall
For the third year in a row, the 2020 cultivation year saw a lack of rainfall for sugar beet in the summer, while yellowing disease reappeared in many regions, Nordzucker said.
However, rainfall at the end of the summer provided a growth impulse and led to a slightly above-average yield of 69.5 tonnes of beet per hectare across the group.
In October of last year, the company reported that it had returned to profit, helped both by cost-cutting and stable European sugar markets.
© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.