Nordzucker Profits Decline Slightly on Falling Sugar Prices
In the first nine months of the 2013/2014 financial year Nordzucker generated revenues of EUR 1,849.…In the first nine months of the 2013/2014 financial year Nordzucker generated revenues of EUR 1,849.7 million. Income was therefore slightly down on the figure of EUR 1,871.9 million for the same period a year ago. Higher total sugar sales were largely able to make up for the lower prices for quota and non - quota sugar. Profit for the period declined year on year to EUR 257.8 million (previous year: EUR 315.5 million).
Two main reasons were responsible for the fall: the lower prices for quota and non - quota sugar as well as higher production costs.
Hartwig Fuchs, Chief Executive Of ficer of Nordzucker AG, does not think the market has bottomed out yet: “The third quarter is showing weaker prices once again. With global sugar stockpiles high at the same time, the pressure on prices continues. This is reflected in our contracts as well , and their impact will be felt in full in the upcoming financial year,” added Hartwig Fuchs.
Despite this, the CEO looks to the future with confidence. “After two exceptionally good years, our earnings will still be at a very decent level. Our main task is still to steer the company to a successful future, even if the market and competitive environment is more challenging, and to prepare for the end of quotas in 2017. This primarily calls for more efficient structures and concerted action in the market.” Nordzucker’s financial year always begins on 1 March and ends on 28 February.
The interim report for the first nine months covers all commercial activities from 1 March 2013 to 30 November 2013.
