The fall in sugar prices also caused losses for Nordzucker in the current financial year; However, the financial reserves of the company are so large that it will use the crisis in the industry for expansion.
The European Union liberalized the sugar market in September 2017 and abolished the minimum pricing system and delivery quotas. As a result, there was an enormous surplus of sugar on the world market and prices have fallen by about 40% since the beginning of 2017.
Some European sugar factories with low financial resources have to give up or are looking for partners. This creates opportunities for Nordzucker, says Lars Gorissen, CEO of Nordzucker in an annual press conference.
Nordzucker expects revenue to fall in the current financial year, which began on March 1st. Competition in the industry has become particularly strong since market liberalization. Now you have to find a new balance, this includes the Gesundschrumppfung.
White sugar prices have fallen to their lowest level in nine years as global supply exceeds demand. Nordzucker reports that its sales increased by 3% in 2017/18 (March 2017 to February 2018) and realized sales of EUR 1.65 billion.The net surplus increased to 118 million euros from 99 million euros in the previous year.
However, the sharp drop in sugar prices had a negative impact on the overall result in Q4. At the moment, exports bring losses, but for Nordzucker the expansion is the main focus.
The EU remains the most important target market for Nordzucker, according to Gorissen. However, he now wants to convert Nordzucker into a globally operating company and also acquire production facilities in other parts of the world.
Text: HANSA Derivatives Trading GmbH /
