Increased Sales, Decreased Profits: Belarusian Sugar Heavyweights Experience Marginal Losses Despite Record Income
Sweet but Sluggish: A Sugar Factory Tale
In 2024, Belarusian sugar factories churned out over 1.59 billion rubles in revenue, a whopping 15.8% increase from the previous year. However, the sweet profits dwindled, with net profits tumbling by a quart.
Leading the pack, OAO "Slutsk Sugar Refinery" boosted its earnings by 15.85% to 484 million rubles. But alas, its net profit dropped by 8.75%. The Zhabinka Sugar Factory followed suit, growing its revenue by 16.9% to 339.3 million, yet suffering a 34.8% decline in net profit.
The Grodno Sugar Combine managed to give its revenues a 26% boost, hitting 455.4 million rubles. Unfortunately, net profit also took a hit, diving 23.9% to 41 million rubles. The OAO "Skidel Sugar Factory" tweaked its revenue by only 2.8%, reaching 312.4 million, and its net profit plummeted nearly 3.5 times from 27.5 million to 7.9 million rubles.
Nevertheless, the enterprise announced a dividend payment of 6.1 rubles per share. The Slutsk Combine showered shareholders with a much heftier 37.515 rubles, while the Zhabinka Sugar Factory trickled out a more modest 0.86 rubles.
Notably, 6.85 million tons of sugar were manufactured in EAEU countries in the last season. Among them, Russia led the charge with 6.05 million tons, followed by Belarus with 614 thousand tons, Kazakhstan with 67 thousand tons, and Kyrgyzstan with 120.5 thousand tons.
Meanwhile, the banking sector hummed in harmony with an array of offerings including everything from consumer loans and auto loans to business loans, mortgages, and various leasing services for both new and used vehicles. So, while the sugar factories struggled, the banks offered a sweet alternative.
As for the reasons behind this peculiar sugar factory scenario, let's dive into some potential causes:
Agricultural vs. Manufacturing Dynamics:The Belarusian agricultural sector experienced a 3.4% growth in 2024[3]. However, it's possible that the sugar factories faced higher costs for purchasing raw materials without a proportional increase in output prices or faced export challenges, resulting in shrinking margins.
Operational Cost Pressures:A booming global demand for beet sugar, growing by 4.3% YoY in 2025[4], could have sparked competitive battles for raw materials. Increased expenses in areas like energy, labor, or logistics that weren't reflected in the agricultural figures[3] might have eaten into profits.
External Market Factors:Currency fluctuations, trade restrictions, or reduced export demand could explain the rise in revenue without corresponding profit growth. Reports from the WEG and Aperam demonstrate how global market conditions can impact industrial profitability, though not specifically for Belarus.
Financial Restructuring or Debts:Non-monetary adjustments such as depreciation and provisions may have lowered the net profit despite operational revenue growth. However, no Belarus-specific financial data is available.
- In 2024, Belarusian sugar factories, including OAO "Slutsk Sugar Refinery" and the Grodno Sugar Combine, collectively generated over 1.59 billion rubles in revenue.
- Despite the increase in revenue, net profits for these factories dropped significantly, with OAO "Slutsk Sugar Refinery" experiencing an 8.75% decline in net profit.
- The OAO "Skidel Sugar Factory" displayed the steepest decline, with its net profit plummeting nearly 3.5 times from the previous year.
- Amidst these financial challenges, the industry announced a dividend payment, with the Slutsk Combine offering the most substantial payout to shareholders.
