Positive about the future
Südzucker records solid growth figures
Südzucker, one of the largest sugar producers in Europe, made significantly more profit in the second financial quarter than previously thought. Despite the fact that a quota-free period could bring uncertainty, the German company expects to further expand its position.
In the financial quarter, up to and including May, Südzucker made an operating profit of €153 million, Reuters news agency reported. An increase of almost 40% compared to the previous quarter. The profit is therefore €10 million higher than what analysts had been counting on. This plus comes from increased profits from the sale of sugar and biofuels. Turnover rose 11% to €1,78 billion. Net profit by more than 56%, to € 120 million. In all cases, the figures are higher than expected.
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Optimistic about the future
Despite the fact that a quota-free period brings uncertainty, the German beet processor sees sunny times ahead. It claims to be the largest sugar producer in the EU, putting it in a good position to build on its financial results. At least that is the aim. "We are optimistic about a liberalized sugar market and predict higher revenues for the sugar sector in a free EU market," a company spokesperson said.
Significantly higher profit expected
During the presentation of the quarterly figures on Thursday 13 July, Südzucker announced that it expects a substantially higher profit from the sale of sugar. In the past financial year, the profit on sugar sales amounted to € 72 million. For the current financial year 2017 and 2018, a group result of between €425 and €500 million is expected.
More efficient processing
Südzucker is also positive about the coming harvest. The greatly increased acreage of sugar beet was sown under good conditions and has developed well. By growing more beets, the factories are more fully planned, they run more efficiently and the fixed costs are lower. The area covered by the entire Südzucker group this year amounts to 443.644 hectares. An increase of 15%.
Red numbers for specialties
The only blemish in the air at the German concern is the specialties department. It recorded a sharply lower profit, due to higher raw material costs. The company's biogas division, CropEnergies, is also posting higher sales and higher profits.
Niels van der Boom
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