Nordzucker AG: Downward Trend Continues in Q2
16 Oct 2014 --- In the first six months of the 2014/2015 financial year the Nordzucker Group generated revenues of €975.4 million (previous year: €1,222.7 million). The net income achieved during the same period reached €53.1 million (previous year’s period: €184.6 million).
Lower prices, considerable pressure due to supply pressure of the market – also caused by imports – and lower sales volumes are the main reasons for the significant drop in earnings.
Overall, the second quarter has been characterised by falling revenues, thereby continuing the trend that has shaped the past months: “This tense situation is not a surprise for us, given that the expiry of the sugar market regime in 2017 is already presenting us with considerably changed market and sales conditions today. It is our solid financial policy of the previous years, which is primarily characterised by the repayment of debt and the building up of equity, that will help us to navigate the turbulences of the coming months while still allowing us to pursue growth in our core business and a planned internationalisation,” explained Hartwig Fuchs, CEO of Nordzucker AG.
Nordzucker is also placing greater emphasis on a market and customer focus, in order to continue to strengthen its own presence in the markets in future as well. In addition to this, Nordzucker is going to make considerable efforts to improve the efficiency of the company and to save costs.
With a view to the future, the CEO added: “We believe that income will increase again in the long term, as the market supply will decrease in light of the low prices. Until then, we will continue to make our company competitive.”
Nordzucker’s financial year begins on 1 March and ends on 28 February. The Interim Report for the first six months covers all commercial activities from 1 March 2014 to 31 August 2014.
