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Nordzucker Post 2/2024 - 23 May 2024

Annual financial statements 2023/2024: Second-best result in the Group history

With an operating result (EBIT) of 421 million Euro, Nordzucker once again closed the past fiscal year very successfully. EBIT roughly doubled compared to the previous year.

It was the second best fiscal year in the history of Nordzucker AG. Compared to the previous year, sales rose by 29.3 per cent to 2.9 billion Euro and EBIT by 210 million Euro to 421 million Euro. The Australian subsidiary Mackay Sugar Ltd. contributed 27 million Euro to the net operating result, exceeding the previous year’s result by 5 million Euro. The Group’s net profit before minority interests totaled 326 million Euro after 182 million Euro in the previous year. The company was able to increase its EBIT profit margin from 9 per cent in the previous year to 14 per cent.

“One of the main reasons for the very good business result is a higher price level for sugar compared to the previous year, which more than compensated for the significant cost increases for raw materials and energy supply as well as in logistics,” explains CFO Alexander Bott. At the same time, Nordzucker invested at a record level in the 2023/2024 fiscal year and will invest more than 300 million Euro in the decarbonisation of production over the next five years. In addition, around 100 million Euro is planned for the construction of a new production facility for plant-based proteins in Groß Munzel.

Markets are normalising – prospects for 2024/2025 remain positive

However, there are currently signs that sugar prices are falling significantly. Reasons for this include increasing production capacities in the EU and imports from Ukraine.

“Another record year is not to be expected in view of falling prices and volatile markets,” says CFO Alexander Bott. The markets are normalising. “We do not currently expect to be able to achieve results at this level in the coming years.” Nevertheless, the outlook remains positive. “We continue to expect an EBIT above 200 million Euro in this fiscal year. Alexander Bott believes Nordzucker is well positioned for the future: “We are investing with foresight and a sense of proportion. With our excellence initiatives to optimise the entire value chain, Nordzucker will successfully continue on its path to becoming an even more sustainable and at the same time profitable company.”

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