🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Suedzucker reiterates positive annual outlook despite quarterly slump

Published 07/08/2021, 01:11 AM
Updated 07/08/2021, 02:15 AM
© Reuters. A company logo of Suedzucker Group is pictured at the headquarters in Mannheim, Germany March 12, 2019. REUTERS/Ralph Orlowski/Files

HAMBURG (Reuters) -Suedzucker on Thursday confirmed a drop in first-quarter earnings as Europe's largest sugar producer faced an economic fallout from the coronavirus pandemic, though it expects profit to climb in its full financial year.

Suedzucker said group operating profit dropped 20.1% on-year to 49 million euros ($58 million) in the first quarter ended May 31.

The company confirmed it still expects full-year group operating profit of 300 million to 400 million euros, up from 236 million euros last year.

The company had made a limited advanced announcement of its earnings last month.

Its full-year operating profit is forecast at between breakeven and 100 million euros.

"We expect an improvement in the EU sugar market from October 2021 and also expect to achieve higher sugar sales prices in the second half of the business year," a Suedzucker spokesperson told Reuters.

"The EU is expected to remain a net sugar importer with the overall European sugar supply picture looking tight. With world sugar prices likely to firm, this should also mean higher EU sugar prices in coming months."

Raw sugar futures this week hovered around four-month highs as crop damage in top producer Brazil after frost was assessed.

"We have slightly expanded our sugar beet area for the new harvest," the spokesperson added. "We are also hoping that the general economic framework will improve with the impact of COVID-19 declining as more people are vaccinated."

© Reuters. A company logo of Suedzucker Group is pictured at the headquarters in Mannheim, Germany March 12, 2019. REUTERS/Ralph Orlowski/Files

Suedzucker's 2021 sugar beet plantings are up 3.1% at 353,600 hectares.

The company's first-quarter numbers were dented by operating losses of 25 million euros in the sugar sector, wider from an operating loss of 16 million euros a year earlier.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.