Nordzucker Post 04/2020 - 10 August 2020
Positive result in the first quarter confirms expectations
After two financial years in which Nordzucker had to report losses, the company was now able to generate a positive operating profit in the first quarter of 2020/21 from 1 March to 31 May 2020.
A positive price effect in the European sugar market combined with good developments in sales of animal feed and bioethanol led to a 25 percent increase in revenues over the same quarter last year. Declining production costs in the 2019/20 campaign and lower sales and administrative expenses had a positive impact on earnings. Earnings in the cane sugar business of the subsidiary Mackay Sugar Ltd. in Australia were also positive in the first quarter.
Following a loss of five million Euro in the same period last year, the group generated an operating profit (EBIT) of 23 million Euro in the first three months.
“We are satisfied with the first quarter of the fiscal year and expect a clearly positive consolidated result for 2020/21. The corona crisis has so far led to marginal declines in sales volumes and the world market price has come under severe pressure since then. However, we can largely offset these negative effects with the prices we have fixed. In addition, there are positive price effects from energy prices. Furthermore, our cost-cutting measures, which we are continuing to pursue systematically, are taking effect,” said Alexander Bott, CFO, Chief Financial Officer of Nordzucker AG, summarising the situation.