Südzucker International Finance B. V. Südzucker AG ... - Xetra

Special products segmentOverviewDevelopment of divisionsThe special products segment is made up of thePalatinit, ORAFTI and starch divisions, together withactivities of the Portion Pack, Surafti and FreibergerGroups.Key figures for the special products segment2002/03 2001/02*Sales D million 1,025 922Operating profit D million 123 93Operating margin % 12.0 10.0ROCE % 16.0 12.7Capital expenditure D million 72 76Investments in financial assets D million 14 61*Without Schöller Holding.Palatinit shows progressPalatinit GmbH, Mannheim, the number one for rawmaterials for sugar-free confectionery with Isomalt,could extend its market position in 2002/03, althoughnegative currency influences and increasedcompetition caused difficult overall conditions.Volumes of sales to a stagnating confectioneryindustry could be increased, as the sensory andphysiological properties of Isomalt are precisely inline with the fashion for confectionery which notonly promises but also meets the promise of "fulltaste with no regrets". The high taste qualities ofIsomalt-based confectionery compared withtraditional products has been confirmed time andtime again in blind tests carried out by independentmarket research institutions world-wide. Manypublished international consumer studies confirmthat, more than ever, healthy teeth, calorie contentand diabetes are major topics for consumers andsolutions are being sought by consuming “the right”food.Sales volumes of sugar-free chewing gum pellets andcough drops and breath-freshening confectionery areat a high level, and growth is continuing. Demandis growing rapidly in the sugar-free confectionerysector for products such as caramel cream orstrawberry cream. International producers havedecided in favour of using Isomalt from Palatinit forthese products. There has been further satisfactorygrowth in sales of sugar-free functional foodproducts containing Isomalt in Asian markets, whichtend to be open to traditional, health-inducingingredients and which make successful use of amodern sugar-free sweetener "made in Germany".F-68