DEVELOPMENT OF KRAJOWA SPOLKA CUKROWA FROM PERSPECTIVE OF FINANCIAL AND PRODUCTION INDICATORS

The project for the transformation of Polish sugar industry was established shortly before the accession to the EU, i.e. during the preparation of Poland's entry to the single market. Krajowa Spolka Cukrowa (KSC) was officially established in 2003 and initially included 27 sugar factories; the gradual restructuring led to the closure of 20 of these factories. This article follows the development of company production and financial indicators. In view of the results achieved, it can be concluded that Krajowa Spolka Cukrowa has significantly improved its production efficiency through numerous investments in technology lines, heat and waste management. The volume of investments increased mainly before and after the end of the EU production quota regime. Production indicators also improved, sugar production increased, polarization sugar yields improved, electricity consumption declined, the number of employees decreased as campaign length and average processing capacity increased. At the same time, the emphasis on improving logistics towards customers outside Poland and outside the EU has significantly strengthened. Despite the unfavourable price development on the world sugar market, KSC was able to generate profits in the fiscal year 2017/2018, although profitability ratio significantly dropped below the long-term average. It is clear that the company has been able to cope with the transformation and the single market mechanisms. However, although showing positive trends in many indicators, KSC still has potential for improvement. The values of other sugar groups operating on the Polish market should be used as benchmark.