13 February 2020
Cosun booked a considerably better group result in 2019 than in 2018. The improvement was due principally to Aviko’s strong operating profit on the one hand and the slow recovery in sugar prices at the end of 2019 after dipping to a low during the year. Thanks to the more favourable figures, the price Cosun paid to its growers for their beet was higher than in the previous year and more than projected at the beginning of 2019.
Consolidated turnover amounted to € 2,046 billion, the same as in 2018. Suiker Unie was confronted with weaker sugar prices in combination with lower volumes, both inside and outside Europe. Aviko saw a strong increase in its turnover. Duynie and Sensus’s turnover was higher, SVZ’s was lower. The operating profit before the members’ bonus rose from € 17 million in 2018 to € 64 million in 2019. The operating profit before depreciation, amortisation and the members’ bonus (EBITDA) rose from € 146 million in the previous year to € 182 million. The members’ bonus distributed to the growers amounted to € 39 million (2018: € 14 million).
Suiker Unie saw a gradual increase in European sugar prices at the end of 2019. Disappointing harvests for the year again meant less sugar was produced in Europe. This explains the upward trend in selling prices. Suiker Unie’s result for the year was accordingly better than expected, thanks in part to favourable bioethanol prices. The higher sugar prices also fed into the contracts negotiated for 2020. In combination with continuous cost control, Suiker Unie expects to return to profit in 2020 after incurring losses in the previous two years.
Aviko achieved its highest operating profit ever in 2019. The limited potato harvest in 2018 lifted selling prices to a higher level. Aviko also benefited from the growing global demand for frozen fries and potato products. Demand is rising by about 4% per annum on the back of greater worldwide prosperity. Aviko Rixona is benefiting from the higher global demand for potato snacks. To continue to meet the demand, Aviko is building a new factory in Poperinge, Belgium, to produce frozen fries and potato flakes. Another investment for profitable growth is the acquisition (90%) of the Chinese fries manufacturer Hongyuan Louis, which is expected to be completed in the first half of 2020. Aviko is looking to the future with confidence.
Sensus reported higher turnover and a slightly firmer result for the year despite the pressure exerted on its margins by increased competition. Supply of inulin in its markets has been brought more into line with demand and there is potential for higher prices. This is a good position for contract negotiations in 2020, particularly with a view to the stricter quality criteria and rising costs.
SVZ had a disappointing year in 2019. Harvests in Europe did not meet expectations. As a result, the cost of some product groups increased while selling prices remained flat. Margins were accordingly squeezed. In the US, SVZ suffered operational setbacks. In 2020 the group will concentrate on strengthening its operating profit, with attention for all the links of sustainability in its supply chain.
Duynie Group saw an increase in both its turnover and operating profit in 2019. All its business units reported growth and strengthened their market positions. Turnover of Duynie Feed increased, amongst others by a new sales office in Poland. AgriBioSource (ABS) in Denmark got off to a successful start supplying fermentation feedstock to produce energy. Novidon benefited from higher prices prompted by a shortage of potato starch in the market. Duynie Ingredients in Cuijk will take its climate neutral factory into service in the course of 2020. By meeting the growing demand for high quality dried ingredients for pet food and animal feed, the factory will provide an extra impulse for Duynie Ingredients’ strong growth.
The price paid for sugar beet of average quality supplied during 2019 amounted to € 36.05, in comparison with € 35.59 in 2018. This modest increase was the net
outcome of a higher members’ bonus of € 6.50 (2018: € 2.25) and the beet’s lower sugar content and sugar extraction rate. The dry summer and wet autumn reduced
the average sugar content from 17.4% in 2018 to 16.3% in 2019. The price per tonne of quota beet of standard quality (sugar content of 17% and extractability
rate of 91) amounted to € 39 per tonne (basic price of € 32.50 plus € 6.50 members’ bonus). The standard beet price in 2018 had been € 34.75 (basic price of €
32.50 plus € 2.25 members’ bonus).
The price paid for surplus beet of standard quality amounted to € 25 per tonne (2018: € 30) and the price paid for beet of average quality was € 23.11 (2018: € 30.72) per tonne.
In the Netherlands, the sugar yield per hectare in the 2019 season came to 13.7 tonnes (2018: 13.2 tonnes). The average financial yield per hectare earned by the growers came to € 2,930 per hectare (2018: € 2,666).
The table below shows the estimated volume of the sugar beet supplied and processed and the beet sugar produced in the Netherlands for 2019 in comparison with 2018 (between brackets).
|Beet processed||[in tonnes]||6.779.041||(6.555.683)|
|Sugar content||[in %]||16,3||(17,4)|
|Beet sugar production||[in tonnes]||1.098.000||(1.103.435)|
The figures in this press release have not been audited by the external auditor. This press release is not an announcement within the meaning of Book 2, article
395, paragraph 2 of the Dutch Civil Code. Cosun will publish its definitive figures for 2019 on its website, www.cosun.nl, in April.
Breda, 13 February 2020
Mariëlle de Klerk
Corporate Communication | Royal Cosun
T +31 6 2241 8000
For more information: www.cosun.nl
12 February 2020
We are proud to present our new corporate identity. This style resembles our new, plant-based vision. The logo consists of a leaf and the sun, and stands for a bright plant-based future. A future that joins forces between our cooperative and society.Read more
12 February 2020
We are proud to present our new corporate identity. This style resembles our new, plant-based vision. The logo consists of a leaf and the sun, and stands for a bright plant-based future. A future that joins forces between our cooperative and society.
You will see our new visual identity on all our upcoming publications, letters and this temporary website. Both the Cosun head office and our innovation center change its identity. The Cosun websites will be developed in the coming months. Later this year, we will introduce a completely new website. Until then, you will read the most important news here. Contact us if you need more information.
15 January 2020
Aviko acquires Chinese French Fries Producer Hongyuan Louis Acquisition will further drive Aviko’s growth ambition in China.
Dutch-based company Aviko, one of Europe’s largest producers of fresh, frozen, dried and specialty potato products and part of Royal Cosun, has reached an agreement with Hongyuan Agriculture to acquire 90% of its shares in Hongyuan Louis.
Hongyuan Louis is a relatively young producer of frozen French fries located in Xilinhot, North of Bashang in China. The deal includes a factory with an annual capacity of 50.000 tons, potato storages, a semi-automatic cold store, boiler house, waste-water treatment and around 170 employees. Hongyuan Agriculture will stay involved as a 10% shareholder and closely cooperate with Aviko on amongst others the sourcing of potato.
Aviko has been active in China since 2007 with production activities in Gansu. In recent years, Aviko has successfully established a strong commercial distribution network for frozen potato products throughout China with a sales head office in Shanghai. Today, Aviko is recognized as one of the leading international brands for frozen potato products.
“With an average market growth for frozen fries of 10% per year, China is of major strategic importance to Aviko. For us, the acquisition of Hongyuan Louis is just the perfect opportunity to complement our already strong Chinese commercial position with modern local production facilities”, says CEO Aviko Group Chris Deen. “This deal will help us gain and sustain a prominent market position in China”.
More and more Chinese customers are embracing Western culture, fashion and habits. This also translates into a rapidly growing popularity of western oriented menu’s. Potatoes and potato products such as French fries are increasingly becoming a favorite part of daily nutrition.
“This acquisition fits perfectly in Cosun’s ambition to have a leading position in plant-based solutions. We believe that plant-based is key to a sustainable future for next generations. That is why we are committed to the growth strategy of Aviko, taking full advantage of the growing global markets for potato products”, says Albert Markusse, CEO Cosun.
With activities in more than 110 countries and production locations in The Netherlands, Germany, Belgium, Sweden, Poland and China, Aviko is the fourth biggest potato products producing company in the world. The company is part of Royal Cosun, a 2-plus billion Euro Dutch cooperative, active in plant-based food, food & pet food ingredients, circular feed, biobased solutions and green energy.
6 January 2020
Cosun will appoint Pieter Spanjers as interim CEO of SVZ with effect from January 6th 2020.
Pieter Spanjers (48) is an experienced general manager in the international food (ingredients) industry. He is a graduate of HAS University Den Bosch and TSM Business School. Pieter Spanjers started his career as a management consultant for a consultancy firm that is now part of Twijnstra&Gudde. Since then he has held several management positions within Cosun and Meneba. For 9 years he successfully led Unicorn Grain Specialties as CEO. Since last year he is active as a consultant and interim manager. Pieter has built up an excellent reputation throughout his career.
As CEO of SVZ he is the successor of Anouk ter Laak, who decided to step down, effective January 2nd. The mission for Pieter is to lead SVZ to strengthen and grow its positions in high quality, natural and healthy food and vegetable ingredients and improve financial results.The introduction of Pieter to SVZ and Cosun will commence immediately. We wish Pieter Spanjers and his team every success and thank Anouk ter Laak for her contribution to SVZ and Cosun in the past 7 years.
6 December 2019
Royal Cosun will appoint Chris Deen (52) as CEO of the Aviko Group with effect from January 15th, 2020. Chris will succeed Ton Christiaanse who holds this position on an interim basis.
Chris Deen has a proven track record in leading businesses to continued success in food ser-vice, food ingredients and retail. Previously he held the CEO position of Bakkersland, a Dutch market leader in daily fresh bread, pastry and in-store bake-off bread. Prior to that he held several positions at Sara Lee International, amongst which General Manager Foodservice Ibe-ria. Most recently Chris served as Director at Royal Euroma, a European company offering herbs and spices to international leading food industry partners. One of his responsibilities was the integration of the recently required Intertaste organization.
Chris’ mission will be to continue and further build upon Aviko’s successful growth strategy, while expanding its leadership positions and effectively integrating recent and future invest-ments. As CEO of Aviko, Chris will be a member of Cosun’s Executive Board and report directly to Cosun’s CEO Albert Markusse. A request for advice has been submitted to the work council of Aviko. Meanwhile Chris’ introduction to Aviko and Cosun has commenced. We wish Chris every success in his new role!
We would like to thank Ton Christiaanse for his great work for Aviko during the twelve months of his tenure. With his team he led Aviko’s result to an all-time high and realized well needed capacity expansion with an unequaled investment in a new factory for the production of French fries in Poperinge, Belgium.
12 September 2019
Aviko poised for future growth due to major capacity expansion. New state-of-the-art Greenfield operation foor french fries production.
Today, Dutch-based company Aviko, one of Europe’s biggest producers of fresh, frozen, dried and specialty potato products, announces a major investment in its production capacity in Poperinge, Belgium. The announcement follows approval by Aviko’s parent company Royal Cosun. The investment includes the establishment of an entirely new production facility for frozen French fries and potato flakes for markets in Western Europe, Asia and South America.
“The global market for frozen potato products continues to grow at around 4% per year. Additional processing capacity will allow us to take full advantage of this rapidly growing market and realize our ambitious growth targets”, says CEO Aviko Group Ton Christiaanse. “After thorough assessment of cultivation, logistics and the market, Poperinge in the South of Belgium was determined as the best region to expand our mainstream capacity.”
The new plant with a capacity of 175.000 tons frozen fries and 11.000 tons flakes annually includes waste water treatment, a 40 meter high cold store, a factory, a washing & sorting area and flakes production. In Proven, a close by sub municipality of Poperinge, Aviko already has a production site for deep-frozen fries and potato specialties with around 275 employees. This production site will focus entirely on the production of potato specialties. The current frozen fries production will be transferred to Poperinge. When fully operational, the new facility will employ approximately 155 employees, includ-ing 45 coming over from Proven. Start-up is expected to commence in September 2021.
Aviko’s ambition is to realize growth in a sustainable and responsible manner with respect for people, society and the environment. Therefore, throughout the various stages of design, construction and operation the highest levels of sustainability are met. This includes high combined energy efficiency, minimal loss of potato material, full reprocessing of residual material, reuse of water, rooftop solar panels and a cold store built in accordance with BREEAM requirements, a prestigious assessment tool for the sustainability performance of buildings.
"This investment will allow Aviko to further enhance its long-term #1 and #2 positions in the European food service and retail markets, while at the same time pursuing attractive, profitable growth opportu-nities overseas", says Albert Markusse, CEO Cosun.
With activities in more than 110 countries and production locations in The Netherlands, Germany, Belgium, Sweden, Poland and China, Aviko is the fourth biggest potato products producing company in the world. The company is part of Royal Cosun, a 2-plus billion Euro agro-industrial cooperative and manufacturer of products and ingredients for food, non-food applications and the chemical industry.