Increased sales, yet decreasing profits: Belarusian sugar conglomerates endure shrinking profit margins despite record sales
Sugary Success, But Profit Misses the Mark
Here's a sweet surprise: Belarusian sugar factories raked in a whopping 1.59 billion rubles in revenue in 2024, marking a 15.8% increase. But hold on to your sweet teeth, because the net profit has taken a bitter tumble, plummeting by a quarter.
Let's zero in on the heavyweights: OAO "Slutsk Sugar Refinery" and Zhabinka Sugar Factory. Revenue for both jumped by 15.85% and 16.9%, respectively. However, they've also seen their net profit drop like a lump of sugar in boiling water, with Slutsk Sugar Refinery'snet profit dipping by 8.75%, and Zhabinka Sugar Factory's profit plummeting by a staggering 34.8%.
Grodno Sugar Combine managed to sweeten its revenue pie by nearly 26%, but its net profit also took a hit, dipping by 23.9%. Meanwhile, OAO "Skidel Sugar Factory" saw only a 2.8% revenue growth, and its net profit nosedived almost 3.5 times.
Despite the profit dip, the enterprises haven't given up the sweet life just yet. They're still announcing dividends for shareholders, with Slutsk Combine paying out a hefty 37.515 rubles per share and Zhabinka Sugar Factory forking over 0.86 rubles.
It's worth noting that, according to the Eurasian Sugar Association, a total of 6.85 million tons of sugar were produced in the EAEU countries last season, including 6.05 million tons in Russia, 614 thousand tons in Belarus, and the rest in Kazakhstan and Kyrgyzstan.
As for the financial offerings, you can count on these sugar factories for a plethora of business-related services, from consumer and auto loans to business loans, mortgages, deposits, leasing, and credit card services.
Sadly, we couldn't find the specifics about the performance of these Belarusian sugar factories in 2024. But in the broader Belarusian economic context, the year 2022 saw a 5.4% drop in industrial production, with a slight rebound expected in 2023.
On a global scale, the demand for beet sugar is projected to reach $4.6 billion in 2024, registering a 5.4% compound annual growth rate through 2035. However, Belarusian sugar manufacturers may face challenges due to sanctions and supply-chain disruptions. With that said, a thorough analysis of Belarusian national statistics or industry reports would be necessary for more precise data.
- In 2024, Belarusian sugar factories earned a combined revenue of 1.59 billion rubles, marking a significant increase of 15.8%.
- Despite the revenue growth, the net profit of OAO "Slutsk Sugar Refinery" and Zhabinka Sugar Factory dropped significantly, with Slutsk Sugar Refinery experiencing an 8.75% decrease, and Zhabinka Sugar Factory a startling 34.8% decrease.
- Not all factories experienced a profit dip; Grodno Sugar Combine saw a nearly 26% increase in revenue, but its net profit also took a hit, decreasing by 23.9%.
- Despite the profit drop, these sugar factories continue to offer various financial services, such as consumer and auto loans, business loans, mortgages, deposits, leasing, and credit card services.
