Long Term Growth Strategy Paying Off for Nordzucker
At Euro 91 million, the consolidated profit in 2010/11 was well above expectations, and produced the best consolidated performance since 2005/06.
7/11/2011 --- This year’s Nordzucker AG Annual General Meeting took place under the headline “Back to our former strength”. At Euro 91 million, the consolidated profit in 2010/11 was well above expectations, and produced the best consolidated performance since 2005/06.
The favourable market and sales situation in all three Group regions, as well as the consolidation measures across the Group announced at the last Annual General Meeting, made significant contributions to this good earnings situation. The savings targets incorporated within the “Profitability plus” efficiency programme were impressively exceeded.
“As announced last year, we have steered the company back on course. The acquisition of Nordic Sugar was an important strategic move for us in this context. Today, we are the strong Number 2 in the EU sugar market. We now have to consolidate and expand our position,” says Chief Executive Officer Hartwig Fuchs. Another important item is that Nordzucker succeeded in slashing its financial liabilities by Euro 400 million during the last financial year, and therefore largely mastered the monetary aspects of the Nordic Sugar acquisition.
The consolidation strategy has paid off and enables the Group to look forward again. “Nordzucker has become a European company that generates more than half of its sales and profits outside of Germany. More than fifty per cent of our sugar sales are also now in Northern and Eastern Europe. Our long term expansion strategy is paying off more and more,” adds Dr. Harald Isermeyer, Chairman of the Annual General Meeting and Chairman of the Supervisory Board. “With is consolidation strategy in recent years, Nordzucker has demonstrated that it can be relied upon,” says Hartwig Fuchs. “The Management Board and the Supervisory Board will continue to work together in future on the further success of the company.”
The Annual General Meeting adopted the resolution proposed by the Management Board and the Supervisory Board to pay a dividend of Euro 0.46 per share. This corresponds to a total dividend payment of Euro 22.2 million. The convention accepted the proposal overwhelmingly. The 2009/10 financial year therefore remains an exception: since Nordzucker AG was established in 1997/98, the shareholders of Nordzucker have enjoyed a dividend in 13 out of the 14 years. If business proceeds as expected, the company forecasts that the annual profit in the current financial year will be higher than in 2010/11.
The Annual General Meeting confirmed the strategy pursued by the company and ratified the actions of the Management Board and the Supervisory Board by a large majority. Matts Eskel Rosendahl, a consultant domiciled in Sweden, was voted in as a new member of the Supervisory Board. Gerhard Borchert and Dr. Hans Theo Jachmann kept their seats on the Supervisory Board for another period in office until the Annual General Meeting 2016. Hans-Heinrich Prüße was re-elected for another year, and will step down from the Supervisory Board at the next Annual General Meeting in July 2012 upon reaching the age limit.
After the official end of the Annual General Meeting, the newly elected Nordzucker AG Supervisory Board held its constituent meeting. At the meeting, Hans-Christian Koehler – farmer from Barum-Eppensen – was elected as the new Chairman of the Supervisory Board, and Helmut Meyer for the representatives of the shareholders, and Dieter Woischke for the worker’s representatives, were re-elected as Deputy Chairmen. Dr. Harald Isermeyer, who joined the Supervisory Board in 2004, and has been its chairman since 2006, had already informed the Annual General Meeting when he presented his report that he would no longer be available for re-election for professional reasons. Dr. Isermeyer continues to be a member of the Supervisory Board. The Annual General Meeting, the Management Board and the Supervisory Board of Nordzucker AG thanked Dr. Isermeyer with a long round of applause for his strong commitment and strategic far-sightedness, without which the company would not be so well positioned as it is today.
As the Chairman of the Supervisory Board, Dr. Isermeyer played a major part in expediting the acquisition of Nordic Sugar. At the same time, the equity capital was significantly enlarged during his tenure as chairman. He also implemented the restructuring of the Management Board required by the size and international format of the company.
