Good result for Royal Cosun in 2009;Slight decline of AVIKO turnover

Cosun achieved a net turnover of EUR 1,758 million in 2009, an increase of 4% on 2008 despite the recession, which placed pressure on both sales volumes and selling prices.

Despite the economic headwind, there was a clear 9% improvement in operating profit to EUR 93 million. Virtually all business groups managed to improve their operating profits, in part through further growth at Sensus and Suiker Unie and in part through the timely implementation of cost saving programmes at the other activities.

Group equity increased by EUR 29 million to EUR 753 million (2008: EUR 724 million). The group's strong financial position thus remains undiminished.

Business unit Avikosaw a slight decline in its turnover in 2009, chiefly as a result of lower sales of dried potato products and lower income from residual flows (starch and animal feed). Despite a contraction in the market, turnover on the chip activities was higher. An increase in the proportion of premium products in the portfolio had a positive impact on Aviko's profitability. Furthermore, cost saving measures compensated for the pressure on selling prices, which led to an improvement in operating profit.

Prospects Cosun It is still uncertain how long the economic recovery will continue in western Europe and the Netherlands.

Turnover is expected to be lower in 2010 owing to the reduction in the sugar reference price in the fourth quarter of 2009 and the fierce competition on the chip market. A further fall in sugar prices may exert pressure on Suiker Unie's profits. It is currently thought that the decline will be limited, partly because of scarcity on the world sugar market.   The price war expected in the private label market for chips will certainly have ramifications for Aviko's profits. Further cost savings may not be high enough to fully offset the negative impact on margins.   If the recovery gains momentum, the other business groups are expected to report a further improvement in their results. We shall continue to focus on cost savings in 2010. Cosun will also seek to strengthen its market positions by investing in process and product innovations. On balance, we do not expect the result to differ substantially from that for 2009.