Sales in Frozen and Chilled Potato Products ‘Grew Strongly’ at Royal Cosun’s Aviko Subsidiary

Royal Cosun - a leading agricultural cooperative and its subsidiaries (Aviko, Cosun Beet Company, Duynie Group, Sensus, and SVZ) - registered a significant upturn of results in a turbulent 2022.

“We look back on a turbulent 2022. With the war in Ukraine, the related energy crisis, steep inflation, and challenges in our agri sector, we live in a new reality. Nevertheless, we are posting a substantial recovery in results and achieving a beet price that helps members absorb increased costs in the fields. We have made good strides in the necessary improvement of underlying results and the fulfillment of our ambitious growth agenda. Last year’s turbulence will also provide challenges this year. Despite this, we are positive about the development of the company in 2023. We will adhere to our strategic course Unlock 25 and continue to drive our plant-based ambitious future and future-proof earning model. Providing prospects for our members and our sector,” Hans Meeuwis, CEO of Royal Cosun, said.

The combined revenue of Cosun climbed from EUR2,287m to EUR3,047m in 2022. Positive price growth (+28%) and positive volume growth (+5%) account for the majority of the 33% rise. Operational income climbed by EUR153m to EUR196m in 2022, including non-recurring results. This progress was made possible by all corporate sectors.

Aviko is one of the key growth platforms within the “Unlock 25” plan because of the expanding global demand for frozen and dried potato products. The geographic concentration is on Europe and Asia, and value-added product growth is also present. To continue growing organically, it is crucial that the new French fry plant in Poperinge, Belgium, opens.

“At Aviko, sales in frozen and chilled potato products grew strongly, partly due to the recovering foodservice market after COVID-19. The new Aviko factory in Poperinge in West Flanders, which opened last year, and Aviko’s operations in China are contributing to this growth in turnover. Aviko Rixona also realized a recovery in results due to higher sales and prices after a difficult 2021. Implementation of the capacity expansion is proceeding according to plan. The development of PotatoCheezz (a plant-based cheese substitute) is in line with Cosun’s growth strategy for plant-based solutions. In 2022, Aviko and Aviko Rixona made significant strides in structural efficiency improvements in their current factories and the overall production chain. This should also contribute to further improvements in results in the coming years,” according to a recent cooperative report.

Under its strategy “Unlock 25” Cosun’s declared mission is to unlock the full potential of plants and co-products transparently and circularly and turn them into valuable, plant-based solutions. In doing so, Cosun is responding to social challenges such as the growing demand for food and food ingredients, the need for plant-based alternatives to fossil raw materials, and the protein transition– The Plant Positive Way.

“Cosun’s strategy is focused on improving results in the short and medium term, profitable growth in four selected core areas (sugar beets, potatoes, co-products, and green & health-promoting ingredients), and the realization of a future-proof, sustainable chain. In this way maximum value will be created for Cosun’s members and other stakeholders with the best possible long-term impact of Cosun on society and the environment,” the report concludes.