7 October 2020
2020/21: Nordzucker profitable again
Approval in all topics: Nordzucker AG virtual general meeting
- Costs significantly reduced
- Profitable again in 2020/21
- Only relatively small losses expected due to the pandemic
- Supervisory Board and Executive Board formally approved
This year’s Annual General Meeting of Nordzucker AG was held in virtual form due to the corona pandemic. The event was broadcasted on the Internet via an AGM portal, where the voting also took place.
The financial year 2019/20, which was reported to the Annual General Meeting, closed with a loss of 15 million Euro (previous year’s loss 36 million Euro). This was significantly lower than in the previous year and than originally expected. The consequently and successfully implemented cost reducing program “Act Now!” and also the acquisition of a majority shareholding in Mackay Sugar Ltd. in Australia contributed to this. As in the previous year, no dividend will be paid.
Significant reduction in costs
“We have managed to reduce our costs significantly and with effect on earnings as part of the “Act Now!”-program. This has laid the foundation for more stability in volatile markets”, explained Dr. Lars Gorissen, CEO.
After the outbreak of the Corona pandemic, world market prices dropped significantly with the collapse of the oil price, the increase in sugar production in Brazil and as a result of lower demand worldwide. The situation in the EU, however, remains relatively stable. Nordzucker expects only a relatively small decline in sales volumes in financial year 2020/21 as a result of the pandemic.
Outlook for 2020/21 promises profit
“Thus, we will in all likelihood close the current fiscal year with a good profit. We are profitable again. And this is due not only to the general conditions, but also to our decisive cost reduction measures throughout the Nordzucker Group”, Gorissen continued.
For the future, the Group is focusing on excellence along the entire supply chain. “This also includes a leading role in sustainability, new cultivation methods and innovative technologies that make tomorrow’s carbon neutrality possible”, Gorissen emphasized.
Jochen Johannes Juister, Chairman of the Supervisory Board of Nordzucker AG, emphasised in his presentation: “Growth, transformation and a focus on the targets set have characterised the 2019/20 financial year. This was not an easy path, but it was essential for the future and for strengthening Nordzucker AG. As the owners, we explicitly welcome the successful acquisition of the Australian sugar manufacturer Mackay Sugar. This was an important step for our company”.
The Annual General Meeting confirmed the company’s course and approved the actions of the Executive Board and Supervisory Board with a very large majority.
The Annual General Meeting also elected Dr. Karl-Heinz Engel (Riol), Christoph Friedrich Heins (Uehrde) and Eckhard Hinrichs (Wieren-Wrestedt) as members of the Supervisory Board of Nordzucker AG with a very large majority.
Already in the morning of the same day, the virtual general meeting of Nordzucker Holding AG, largest shareholder of Nordzucker AG with 83.8 percent, had approved the amendments to the articles of association of Nordzucker Holding AG regarding the future contractual basis in beet cultivation. This cleared the way for area-based contracting, which is intended to give farmers and the company more planning security. Details still have to be negotiated.
All detailed voting results are also available in internet here.
Constitutive meeting of the Supervisory Board
Following the Annual General Meeting, the newly elected Supervisory Board of Nordzucker AG held its constituent meeting.
Jochen Johannes Juister was confirmed in his position as Chairman of the Supervisory Board of Nordzucker AG. Helmut Bleckwenn was elected as deputy for the shareholder representatives and Sigrun Krussmann for the employee representatives.
The Nordzucker Group, headquartered in Braunschweig, Germany, is one of the leading sugar manufacturers worldwide. From beet and cane we produce white sugar, raw sugar, refined sugar, specialities and liquid sugars. In addition, the company produces animal feed, molasses, fertilizers and fuels from renewable energies as well as electricity. Sustainability along the entire value chain has a high priority. A total of 3,800 employees in 21 European and Australian production and refining facilities across the Group stand for excellent products and services, thus forming the basis for the company’s further growth.