“Südzucker Moldova” sustained losses of millions of lei

02.04.2014 16:17
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The sales of SA “Südzucker Moldova” last year were about 960 million lei, a decrease of 50 million lei on a year before. The gross profit from sales was by 90 million lei lower than in 2012. Consequently, for the first time in the last five years the company sustained losses of 4.9 million lei, IPN reports.

The company’s Management Committee said such a state of affairs was mainly due to the rise in the VAT on sugar from 8% to 20% last year, which favored the illegal importation of sugar from Ukraine into Moldova. As a result, the sugar prices on the domestic market and, respectively, the sales of national producers decreased, it is said in a communiqué from “Südzucker Moldova”.

The financial needs of the company in the period were partially covered by sugar exports to the EU. Owing to this and to the obtained loans, the company had resources to cultivate sugar beet and to prepare for the production season.

In the second half of last year, the sugar market of Moldova slowly moved on. The sales of “Südzucker Moldova” gradually rose, but, owing to the unfavorable conjuncture on the home and regional markets, the company had to reduce the price of sugar from 11.2 lei/kg in March to 10.3 lei/kg in December.

However, the factories of “Südzucker Moldov” processed over 690,000 tonnes of sugar beet and produced 99,500 tonnes of sugar. This is the highest outcome ever recorded since the company’s foundation in 2001.

After the VAT on sugar was reduced this January, the contraband sugar disappeared from Moldova’s market. But the market continues to stagnate because one of the national producers provided large quantities of sugar to its creditors in order to clear its debts. The sugar is sold at dumping prices and the sales of another two producers practically stopped.

Nevertheless, “Südzucker Moldova” this year intends to maintain the areas of sugar beet fields at least at the same level as last year – 16,000 hectares. Since it started work in Moldova, “Südzucker Moldova” invested over €40 million in the development of production.