Nordzucker published the current annual report at the annual press \nconference. The loss was lower than expected, in particular due to cost \nreductions. Although the corona crisis makes the outlook more difficult,\n a positive result in the current year remains realistic.\n<\/p>\n\n\n\n
Nordzucker closed the 2019\/20 financial year with a slight increase \nin revenues and an operating loss that was significantly lower than the \nprevious year’s loss and lower than expected. The repositioning of the \nsales strategy, the significant streamlining of the organisation and \ncomprehensive permanent cost reductions have contributed to the improved\n results. The 70 per cent majority stake in Australia’s second-largest \nsugar manufacturer, Mackay Sugar Ltd. (MSL) was consolidated for the \nfirst time and made a positive contribution. A positive result for \nNordzucker AG in the current 2020\/21 financial year remains realistic \ndespite uncertainties arising from the corona crisis.\n<\/p>\n\n\n\n
In the 2019\/20 financial year (closing date 29 February) Nordzucker \nachieved group revenues of EUR 1,439 million, 6 percent above the \nprevious year (EUR 1,354 million). Operating profit (EBIT) was minus 15 \nmillion euro (previous year: minus 58 million euro). The financial year \nended with a net loss of minus 15 million euro (previous year: minus 36 \nmillion euro). For the second year in a row, no dividend payment will be\n proposed to the Annual General Meeting.\n<\/p>\n\n\n\n
Outlook: Challenges from Corona Pandemic<\/strong>\n<\/p>\n\n\n\n Sugar prices on the world market and in the EU had recovered during \nthe past financial year. The reasons for this were declining production \nin Europe and the expectation of a global deficit. However, the corona \npandemic has created completely new conditions on the world market since\n the beginning of March. Together with the massive drop in oil prices, \nsugar prices collapsed. Brazil is now partially switching from \nbioethanol to sugar production, which is expected to result in higher \nexport volumes on the world market.\n<\/p>\n\n\n\n In Europe, the demand for sugar products in the retail sector skyrocketed in March 2020, triggered by “hoarding”. \n<\/p>\n\n\n\n Thereafter, retail demand fell to below-average levels, but is expected to normalise.\n<\/p>\n\n\n\n “We were able to meet the sudden increase in demand in all our \ncountries. Many of our customers have expressly thanked us for this,” \nreports Dr. Lars Gorissen, CEO, and continues: “Due to the easing, we \ncurrently assume that the impact of the corona pandemic on demand in the\n EU will be relatively small and that prices will remain largely stable.\n Our clear objective is to return to positive results in the current \nfinancial year”.\n<\/p>\n\n\n\n