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Fiscal year 2017/18

Sugar segment

Performance of the sugar segment

The sugar segment's numbers relate to Südzucker AG, Südzucker Polska, Südzucker Moldova, Raffinerie Tirlemontoise, Saint Louis Sucre and AGRANA. These companies produced 5.9 (4.7) million tonnes of sugar in 29 sugar factories and two refineries. The plants are located in Germany, Belgium, Bosnia-Herzegovina, France, Moldova, Poland, Austria, Romania, Slovakia, the Czech Republic and Hungary. The agriculture, animal feed and Bodengesundheitsdienst divisions are some of the other business units attached to the segment.

Key figures for the sugar segment



2017/182016/17
RevenuesEUR million3,0172,776
EBITDAEUR million278201
Depreciation of fixed assets and intangible assetsEUR million-139-129
Operating profitEUR million13972
Restructuring/special itemsEUR million24-12
Income from companies consolidated at equityEUR million-287
Income from operationsEUR million13567
EBITDA margin%9.27.3
Operating margin%4.62.6
Investments in fixed assetsEUR million171153
Investments in financial assets/acquisitionsEUR million2118
Total investmentsEUR million173271
Capital employedEUR million3,2993,169
Return on capital employed%4.22.3
Employees
7,0346,929
Revenues and operating result
Driven by higher sugar volumes – especially for export – the sugar segment’s revenues rose to € 3,017 (2,776) million. In the first half of the year, sugar sales revenues were higher than last year, but due to the strong decline in the second half, average sales revenues was lower than the year prior.
Despite significantly lower sales revenues since October 2017, the operating result increased to € 139 (72) million, driven by the increase in sugar sales revenues in the first half year right up to September 2017 for both quota and non-quota sugar. To date during the new sugar marketing year, which began in October 2017, sales revenues for both EU and export volumes have declined steadily, which has weighed more and more on the result trend despite lower production costs.
Result of restructuring and extraordinary items
The result from restructuring and extraordinary items of € 24 (-12) million includes mainly income from the excess production levies in sugar marketing years 1999/2000 and 2000/2001. It also includes income from property disposals and insurance reimbursements related to a fire at the Ochsenfurt sugar factory in summer 2017. The income was offset by expenses for restructuring and reorganization programs.
Result from companies consolidated at equity
The sugar segment’s result for companies consolidated at equity was € -28 (7) million and relates to ED&F Man Holdings Limited, London, Great Britain, AGRANA-Studen Group and Maxi S.r.l. The result reflects the difficult sugar and grain environment for the ED&F Man Group.
Capital employed and return on capital employed
Capital employed rose to € 3,299 (3,169) million, driven especially by increased working capital due to higher trade receivables. The significantly improved operating profit of € 139 (72) million drove ROCE to 4.2 (2.3) percent in fiscal 2017/18.
Investments in fixed assets
Investments of € 171 (153) million went primarily toward replacements, efficiency improvements in Offstein, Roye, France and Leopoldsdorf, Austria, product developments at the site in Tienen, Belgium, energy savings in Zeitz and Cerekiew, Poland and investments in environmental protection programs at the German Ochsenfurt, Offstein and Plattling locations. Also noteworthy are logistics and infrastructure projects such as the ones at the Offenau, Offstein and Rain factories, as well as in Cagny, France.