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

major plant foodstuffs, examination of humus and analyses of organic fertiliser. Furthermore, as partof statutory requirements, nutrient comparisons are carried out as part of the fertilization ordinance,and potatoes are tested as required by the official potato ordinance. The main source of revenues isfertilization advisory services. These are carried out using the EUF soil examination method, whichidentifies all the major plant nutrients (nitrogen, phosphate, potash, lime, calcium, magnesium,boron and sulphur) from a soil sample and hence determines crop- and site-related fertilizationrecommendations. A study for threadworm based on a DNA test is a new service. This threadwormtest was developed in co-operation with the Biological Federal Office, the State Office for Agriculturein Freising and Beet Planters Associations. The threadworm test delivers criteria for steps to be takento reduce threadworm when planting in affected areas such as, for example, intercropping specialcrops or varieties.REKOREKO Erdenvertrieb GmbH produces high-quality compost and substrate soil from vegetation andsoil cling on beet delivered to the factories. The favorable weather conditions for growth in the yearended February 28, 2003 led to a further increase in the quantities of vegetation delivered and henceto higher revenues from supplies of vegetation. Due to the partly extreme levels of rainfall in theautumn, quantities sold were slightly down on the previous year, as soil processing was hardlypossible during this time. However, this decline in revenues was more than offset by the increase inrevenues from receiving vegetation.Specialties SegmentOverviewThe Specialties segment is comprised of the Palatinit, ORAFTI and starch divisions, together withactivities of the Portion Pack, Surafti and Freiberger Groups.The following table shows key financial data of Südzucker Group’s Specialties segment:First Halfof 2003/04First Halfof 2002/03 2002/03 2001/02Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 million 584 509 1,025 922Operating profit . . . . . . . . . . . . . . . . . . 5 million 65 53 123 93Operating margin . . . . . . . . . . . . . . . . . % 11.1 10.3 12.0 10.0Capital expenditures . . . . . . . . . . . . . . 5 million 39 33 72 76Investments in financial assets . . . . . 5 million 27 14 14 61The Specialties segment achieved growth of 32.3% in operating profits to 5 123 million in the fiscalyear 2002/03 in comparison to the previous year’s result excluding Schöller. The increase in profitswas achieved through targeted acquisitions, particularly with the purchase of Remy Industries in theORAFTI division, as well as continued internal growth in all divisions comprising the Specialtiessegment. Further internal growth is also responsible for the increase in sales in the first half of thefiscal year 2003/04 as compared to the first half of the fiscal year 2002/03. The increase of theoperating result in the specialties segment to 5 65 (5 53) million primarily reflects additional growthin functional food and the good situation in the discount sector of German retail, in conjunction withthe fact that the inclusion period of Freiberger is two months longer.Palatinit & Orafti GroupPalatinit GmbH, Mannheim, the leading producer of raw materials for sugar-free confectionery withIsomalt, could extend its market position in the fiscal year 2002/03, although negative currencyeffects and increased competition presented difficult overall conditions. Volumes of sales to astagnating confectionery industry could be increased. Demand is growing rapidly in the sugar-free32