Südzucker Moldova reports lower profit for 2009

2009 for Südzucker Moldova SA was one of the most difficult in the last five years owing to the severe drought that halved the sugar beet harvest, the company says in a communique, quoted by Info-Prim Neo. In 2008, Südzucker Moldova produced 81,700 tonnes of sugar, while in 2009 – only 34,700 tonnes. Consequently, the cost price of the sugar increased suddenly. The daughter company of Südzucker Moldova, Agro-SZM, suffered losses of 49 million lei Despite the sharp rise in global sales, up to 812.8 million lei as against 532.3 million lei in 2008, the company's net profit last year was 33.4 million lei, in contrast to 80.1 million lei a year before. After rival companies glutted the home sugar market in the first half of last year, Südzucker Moldova was forced to sell sugar at prices practically equal to the cost price, it is said in the communique. The sudden rise in sales in the first half of 2009 and the delay in starting the harvest of sugar beet made the company import 12,500 tonnes of sugar, including 6,5000 tonnes from the EU. Alexandr Koss, representative of the company's Administration Board, said the investment policy aimed at increasing production efficiency and reducing losses pursued by Südzucker Moldova allowed achieving results in a year hit by crisis. The volume of energy resources consumed when producing sugar has been reduced over two times during the last five years. The company has invested more than 350 million lei in buying equipment and modernizing production in the last six years. The shareholders were paid dividend in 2007 and 2008, to the value of 30 million lei. This year and the next two years, Südzucker Moldova plans to invest about €20-25 million in modernizing its sugar factories, strengthening production capacities and building the first biomass gas power plant in Moldova, in Drochia town.