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:
  • upgrading vegetable raw materials into products for our many customers;
  • making substantial payments to our suppliers, staff, the government and financiers.

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.

TURNOVER
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.

PROFIT
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.

ADDED VALUE STATEMENT (in millions of euros) 2016   2015
Net turnover 1.988   1.948
Other revenue and stock movements -/- 13   39
Payments to suppliers of raw materials -/- 965   -/- 981
Payments to other suppliers -/- 353   -/- 364
Added value created 657   642
       
Employees (salaries) 243   255
Members (beet payments and members’ bonus) 237   230
Financiers (interest) 3   6
Government (taxes) 18   8
Value created for stakeholders 501   499
       
Retained profit 56   46
Depreciation and amortisation 100   98
Value created for reinvestment 156   143

MEMBERS
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.

INVESTMENTS
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.