Südzucker optimistic for the new year, the EU sugar market is strong

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Südzucker, Europe’s largest sugar producer, gave optimistic prospects for its new financial year with a stronger European sugar market expected to improve performance.

Südzucker has given a new forecast of the group’s operating profit for its 2021/22 fiscal year as of March 1 between 300 and 400 million euros (365.58 to 487.44 million dollars).

An overall positive environment in the sugar market is expected in the EU this year, CEO Niels Poerksen told reporters.

As countries emerge from coronavirus lockdowns, demand for sugar is expected to increase as the retail and hospitality sectors pick up, he said. The EU is expected to remain a net importer of sugar.

Südzucker estimates that the 2021/22 result for the sugar sector will be between breakeven and an operating result of 100 million euros.

Also on Thursday, Südzucker said its operating loss for 2020/21 in the sugar business was € 121 million, down from € 236 million the year before.

“Sales revenue”

“The improvement is primarily due to higher revenue from sugar sales due to price increases at the start of the 2019/20 and 2020/21 sugar marketing years,” the company said.

This more than made up for lower sales volumes, higher production costs and lower capacity utilization due to a smaller crop area and below-average beet yields in 2020.

The company’s confirmed operating profits in its 2020/21 fiscal year reached 236 million euros compared to 116 million euros the previous year, aided by firming sugar prices and a restructuring program of the company. ‘business.

He had published an advance on his results on March 24.

Sugar futures hit their highest level in nearly four years in February, supported by short-term supply crunch, and remained strong in May amid soaring ethanol prices and fuel prices. concerns about the sugar cane harvest of the main Brazilian producer.

High raw material costs are expected to cloud the outlook for Südzucker’s ethanol unit, CropEnergies.

Südzucker stock was down 2.6% to € 13.94 by 10:33 GMT.

News by Reuters, edited by MY. For more information on A brands, click here. Click on subscribe to subscribe ESM: European Magazine of Supermarkets.

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