German sugar giant Südzucker saw sales increase by almost 2023% in the first three quarters of the 24/10 financial year. This increase in turnover is largely attributable to the company's sugar division. The result in the CropEnergies division was disappointing.
The Südzucker Group's turnover increased in the first three quarters from €7.106 million in the 2022/23 financial year to €7.779 million in this financial year. The company's gross profit (Ebitda) increased from €805 million to €1.124 million. Sugar still remains an important part of the agricultural group. The turnover of the sugar division increased from €2.366 million last financial year to €3.106 million in the first three quarters of the current financial year. The operating profit of the sugar branch almost quadrupled from €132 million to €525 million in the first three quarters.
The increase in sugar turnover was achieved despite less volume being sold, mainly due to the smaller sugar beet harvest in 2022. Sugar prices were 'significantly higher', Südzucker writes in the explanation of the figures. The higher sugar price has more than made up for the sharply increased costs for raw materials and energy. The further increase in costs in the 2023 campaign had only a limited influence on the result in the third quarter.
It has also become wet in Germany since the end of October and that is hindering the beet campaign. Südzucker also speaks of a high burden of disease. Beet yields are above average, but the sugar content is lower. All in all, Südzucker expects an average sugar yield.
All that glitters is not gold
At the CropEnergies division, turnover fell by €257 million compared to the first three quarters of the previous financial year to €848 million. Less volume of ethanol was converted and prices were also lower. Last year, ethanol prices peaked. The operating result at CropEnergies fell from €235 to €61 million. The starch business saw sales fall from €907 million in the first three quarters of 2022/23 to €907 million in the same period of the current financial year. The operating result remained virtually the same at €58 million this financial year compared to €60 million a year earlier.
Sales at the Fruit and Special Products business units showed limited growth. The operating result did show a strong increase. The result at the Special Products division rose from €71 million to €150 million and at Fruit it rose to €66 million, compared to €38 million a year earlier. In both cases this is mainly due to higher margins.