Südzucker increases profit in first half

Europe's largest sugar producer, Südzucker, has seen profits rise in the first half of fiscal year 2021/2022. This group result is mainly due to the sharp increase in the sugar segment in the second quarter.

Due to the increase in the second quarter, the group's operating profit increased to €134 million. Last year in the same period it was from €129 million† Revenue in the first half of the fiscal year increased by approximately €250 million to €3,60 billion (previous year: €3,35 billion).

Turnover in the sugar segment rose by more than 10% to €1,23 billion. According to Südzucker, this is mainly due to the higher sugar yields since the start of the 2020/2021 season. Since the second quarter of the current season, sales have also been higher. The result is somewhat depressed by the higher production costs. Raw materials and packaging materials have risen sharply in price.

Good prospects for the 2021 campaign
Südzucker started the 2 sugar beet campaign in Poland on September 2021. The other factories followed from mid-September. After several years of drought, sufficient rain in almost all growing areas ensures an above-average beet yield. But due to few hours of sunshine in the summer, the sugar producer is counting on a relatively low sugar content. Nevertheless, a villainous average sugar yield has been estimated at 4,2 million tons. Last year that was 'only' 3,5 million tons.

Südzucker expects to arrive at a result of between €2021 million and €2022 million at the end of the 300/400 financial year. Last year it was €236 million. The profit forecast had to be adjusted downwards halfway through the financial year as a result of the corona pandemic. The final result came to the top of the profit forecast.

Jeanette Pennings

Jeannet has her roots in the flower bulb sector and she grew up on an agricultural company in the northern part of North Holland. As a generalist she reports for Boerenbusiness across all sectors. She is also exploring the possibilities of sponsored advertising.

j.pennings@boerenbusiness. Nl

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.