Hans Meeuwis, CEO Royal Cosun:
“2024 was a special year in more ways than one. Together, we celebrated our 125th anniversary and received the prestigious Koning Willem I Award, a wonderful recognition of 125 years of entrepreneurship and our sustainable, plant-based growth agenda. Good progress was made on our strategic priorities, with sales growth in most segments, and Cosun’s underlying earning capacity continued to improve. We would like to thank our growers and employees for this. However, despite the good results in 2024, we are not satisfied. The impact of the turnaround in the sugar market was substantial, with an increasing imbalance between supply and demand and sharply declining sugar prices. In addition, the weather had a major impact on crop performance, resulting in low crop yields. This has put our members’ returns under severe pressure. Despite growth in our core segments, relatively high inflation and weak economic growth remain a concern. Our recently launched ‘Unlock 30’ strategy update is designed to anticipate these developments. In it, we build on the course embarked on going forward to 2030. We are accelerating the growth strategy and diversifying the portfolio. In addition, we continue to make the chain more sustainable. We are also taking the additional measures necessary for the intended structural improvement in results. This is how we continue to work together to create a plant-based, future-proof business and earning model for our members.”
Arwin Bos, chairman of Cosun Board of Management:
“The past year will have made a lasting impression on our growers. Despite the difficult conditions in the spring and fluctuating sugar markets, they showed admirable commitment. Unfortunately, we are seeing a significant drop in sugar prices in Europe, which is trickling down into the beet price. Combined with the worst sugar beet harvest in years, this makes for disappointing returns for our members. However, we remain determined to further increase returns from sugar beet cultivation. Beyond this, we also continue to work more broadly with our members on innovative solutions and new market opportunities to maximise the value of our crops.”
Preliminary results 2024
In 2024, the priority was to further improve underlying results with a focus on profitable growth and increasing the sustainability of the supply chain.
In terms of sustainability, considerable strides were made throughout the chain last year. For example, Cosun signed the Expression of Principles for Tailormade Agreements (MWA) late in 2024. This collaboration with the national government and several provinces is essential to meeting the 2030 sustainability goals and achieving emission reduction targets, in line with the Science Based Targets initiative (SBTi).
The organisation has been further strengthened to achieve Cosun’s ambitions while further improving employee satisfaction in 2024.
Cosun’s consolidated turnover amounted to €3,439 million in 2024. The preliminary operating result before member surcharge is €386 million, which is historically a strong result, but a decrease compared to the exceptional year of 2023 (€525 million). Results in 2024 show a mixed picture. The decrease was primarily driven by the impact of significantly changed sugar market conditions and confirms the continued high vulnerability to sugar market volatility. Despite market pressures, Cosun made significant structural improvements in 2024. Much of this came from cost and efficiency optimisation, while growth initiatives accounted for further improvements. The potato business showed strong results, in part due to expansions in China and Poland. Plant-based ingredient sales developed positively and further internationalisation of co-products contributed to the long-term growth agenda.
Preliminary EBITDA before member surcharge totals €522 million (2023: €670 million). In 2024, more than €250 million was invested in the strategic and operational agenda. At 21%, the return on invested capital is above Cosun’s long-term target. The financial position is solid and provides room for further investments and acquisitions.
The member surcharge in 2024 is €74 million (2023: €267 million). The member surcharge is largely determined by the sugar result of the current campaign year, which runs from Q4 2024 to Q3 2025. The sharp decline in sugar prices in 2024 and 2025 makes for a lower sugar result in 2025. This current market situation leads directly to a drop in the beet price. The beet price at standard quality amounts to €47.25 per tonnes (2023: €78.00). The price for average-quality beets amounts to €43.52 compared with €67.09 in 2023. The average yield per hectare comes to €3,272 (2023: €5,879), which is a disappointing result for our members. For Cosun, this means a net result of €118 million (2023: €163 million) after member surcharge.
Looking ahead to 2025 and renewed strategy
Cosun’s mission is to unlock the full potential of plants and co-products. In doing so, Cosun is responding to the growing global demand for plant-based foods, food and animal feed ingredients, circular solutions and plant-based alternatives. This development goes hand in hand with the development of a future-proof sustainable chain and a good earning model for members.
In 2025, the focus will be on implementing the renewed Unlock 30 strategy. Given the rising costs in the chain and the desired further improvement of our members’ earning capacity, the bar is being raised, with a strong focus on cost and efficiency improvements, sustainability and profitable growth in core segments (potato products, co-products and ingredients).
Some key pillars of Unlock 30 are:
- Further portfolio growth and diversification, including international growth in potato products, international expansion of circular co-products and a strong focus on further development of a plant-based ingredients portfolio. A new division will be established for food ingredients, where additional efforts and investments in M&A and partnerships will be made in addition to organic growth. The long-term goal is more risk diversification in the portfolio and more stability in earning capacity.
- Sustainability remains a top priority, with a focus on CO2 reduction, more sustainable production processes and further greening of the chain with a focus on water quality and plant health.
- Deployment of digitalisation, artificial intelligence and automation are a key part of the Cosun agenda heading toward 2030.
It is expected that the (geo)political and economic environment will continue to be uncertain in the coming year. Predictability is decreasing, making adaptability even more important. The Netherlands’ competitiveness is under pressure, which is also apparent to Cosun as a Dutch cooperative. The call to policymakers is therefore: provide stability, perspective and implementation capacity. Look closely at the conditions needed for a level playing field. Think in terms of goals and less in terms of rules. With good cooperation and understanding, we can go very far and be of benefit to the wonderful and important agricultural sector. Cosun is actively committed to this.
With Unlock 30, we are fully committed to a sustainable and profitable future, in which we contribute to a future-proof industry for current and future generations. Together with and for each other.
Disclaimer:
The figures in this press release have not yet been audited by the external auditor and do not constitute a disclosure as referred to in Section 2:395(2) of the Dutch Civil Code.