|About Cosun Key figures Preface by the Chairmen Policy & organisation Sustainable cultivation of the raw materials Financial and economic value creation Optimising the production processes Limiting nuisance and inconvenience Good employment practices Reports of suspected wrongdoing||
Financial and economic value creation
Cosun’s Annual Report for 2016 considers the cooperative’s performance and results during the year and the main
developments at and around the group. In this CSR Report, we look at how our activities create value. We create
value by selling goods and services, making payments to our members and staff, and investing in the sustainability
of our production processes.
Cosun is a major economic player that creates added value by:
The table below shows the added value that Cosun generates by selling its products, after the deduction of payments to suppliers and members for their goods and services. In 2016 we created €657 million. Of this amount, €501 million was paid to our employees, members, the government and other financiers. Cosun retained the remainder of the added value and invested in its assets and in the expansion of its activities.
We create value by making optimal use of our vegetable raw materials. Total turnover increased to €1,988 million in 2016, 2% higher than in 2015. Despite lower sugar prices, Suiker Unie’s turnover for the year was also slightly higher than in 2015. Aviko’s turnover was lifted by firmer selling prices. Sensus and Duynie reported lower turnover, while SVZ’s was unchanged from 2015. The greater part of turnover (about 86%) was earned in Europe.
Cosun’s profit for the year was better than expected and higher than in 2015. Earnings before depreciation and amortisation and after adjustment for divested activities and non-recurring items (recurring EBITDA) rose from €167 million in 2015 to €172 million in 2016.
As a cooperative, we pay out a substantial proportion of our earnings to our members. The members’ bonus for the year came to €71 million (2015: €69 million). The quota beet price paid to our members was accordingly higher than in 2015: €44.15 per tonne of beet with average sugar content and average extractability versus €43.01 per tonne in the previous year. At 13.3 tonnes, the average sugar yield per hectare was lower (2015: 13.9 tonnes). The average financial yield per beet grower in the Netherlands accordingly came to €3,317 per hectare, slightly higher than in the previous year. The financial yield per hectare is an important measure of the profitability of beet cultivation.
The cash position was adequate to finance the investments we made in our factories. The healthy financial position gives us a strong platform to continue implementing our growth strategy. Capital expenditure totalled €121 million (2015: €109 million). We again made substantial investments in our sugar and potato activities. They were targeted primarily at increasing the scale and flexibility of our production capacity. We also made regular replacement investments. Cosun did not invest in any acquisitions to strengthen its activities in 2016. In the current year, too, Cosun will invest in a variety of segments in order to strengthen its position in the market.