Nordzucker Post 05/2020 - 8 October 2020
Outlook for 2020/21 promises profit
The price level improved significantly and stabilized at the beginning of the 2019/20 sugar marketing year. The effects are clearly visible in the first six months of the 2020/21 financial year.
Overall, revenues rose by around 25 percent compared with the same period in the previous year. About half of this jump in revenues is attributable to the acquisition of the majority stake in Mackay Sugar Ltd. in Australia. The other part reflects the positive price effect on the EU sugar market.
This price effect is also reflected in earnings. “For the first six months we are forecasting a clearly positive result with an EBIT of 51 Million Euro for the Nordzucker Group. This is far better than we had expected”, said Alexander Bott, CFO.
In addition to the price recovery in the sugar market, the improvement in earnings is also being driven by positive developments in other products, such as molasses in Australia. “We also see further positive effects from our “Act Now!” transformation program. And this not only in the administrative area, where we have special effects due to Corona, such as very low travel expenses. We were also able to achieve further savings and optimizations in sales and production, which are also reflected in the income statement. All in all, a very pleasing development,” Alexander Bott continues.