Solid Results From Cosun
Agri-industrial co-operative Royal Cosun has achieved a strong financial result for 2013 with almost all business groups reporting higher turnover. This was due to higher selling prices, organic growth and a number of smaller acquisitions. Group turnover passed the €2 billion mark for the first time in 2013.
At €2.2 billion, consolidated turnover was 11% higher than in 2012 and Cosun’s operating profit remained at a high level – €175 million versus €193 million in 2012, even though beet payments to the co-operatives members were higher. With lower taxes and finance expenses, net profit for 2013 is projected at €139 million up slightly on the €138 million achieved in 2012.
At the Suiker Unie sugar business turnover was lifted by higher sugar sales. Despite declining sugar prices on the world market, the result remained at a good level, thanks in part to a large proportion of the 2013 turnover being achieved on contracts concluded in 2012. Prices on the world market weakened in 2013 and the European Commission took measures to increase supply on the European market. The outcome was a sharp drop in prices at the end of 2013. Contract prices for 2014 are lower than those for 2013 and Suiker Unie’s result for 2014 will be accordingly lower.
Aviko (potato products) had to cope with high raw material prices owing to the poor harvest in 2012 in combination with a disappointing growing season in 2013. This led to strong pressure on margins and underutilisation at the factories. The tide was turned in the second half of 2013 and the year ended with a positive result. The upturn is expected to continue in the first months of 2014.
Sensus (inulin) turned in a good result for 2013 and reported an increase in sales, among other in the baby food industry in Asia. Demand for inulin as a functional food ingredient for health-conscious consumers is still growing, especially in Asia and the United States.
SVZ (fruit and vegetable purees and concentrates) sustained the upward line in 2013. Its operating profit was higher and its product range is less sensitive to strong prices fluctuations. Growth was derived chiefly from sales of vegetable purees for baby food. The factory in the Netherlands was closed in mid-2013. The activities in the US developed positively.
Duynie (animal feed and starch applications) was strengthened in mid- 2013 with the acquisition of Beuker. The animal feed activities of ‘Jan Bakker’ were acquired at the end of the year. Both the size and the turnover of the Duynie group have therefore increased sharply.
Cosun reported further growth in its core activities and has identified opportunities inside and outside the current product/market combinations. Growth outsideEurope, the end of the common sugar market organisation in 2017 and greater price volatility for agricultural raw materials are presenting Cosun with new opportunities and challenges.
