Financial Dynamics of the Sugar Industry in Central and Eastern Europe: A Synthesis of PCA Results and Strategic Implications

Анотація

This conference paper presents a synthetic and interpretation-oriented version of research results on the financial dynamics of the sugar industry in Central and Eastern Europe over the period 2013–2022. The text builds on previously published analyses but reformulates the research questions and places emphasis on methodological and strategic implications rather than on detailed empirical description. The aim is to assess how Principal Component Analysis contributes to the interpretation of differences between firms and countries, and whether firm size represents a barrier to future growth following the abolition of EU sugar quotas in 2017.

The analysis is based on data from fourteen major sugar producers across six countries (Czech Republic, Austria, Germany, Poland, Hungary, Slovakia) and combines normalized linear trends with PCA modelling of financial indicators. The results confirm the dominant role of firm size (PC1), while also showing that growth potential (PC2) is often higher among smaller and more flexible firms. The third component (PC3) reflects developments in equity and financial stability, which prove crucial for long-term corporate resilience. At the country level, the Czech Republic and Poland emerge as dynamic markets, while Germany and Austria exhibit characteristics of mature and stabilised industries.

The paper discusses the limits of the PCA approach and proposes a typology of sugar mill strategies with respect to capital structure, working capital management, and the ability to adapt to a volatile market environment.

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