News Quarterly figures
Sugar tastes sweeter again at Südzucker
Südzucker Groep saw its operating profit rise sharply in the third quarter of the broken financial year: by 69% to €66 million compared to last year. Turnover increased by 1,6% to €1,74 billion. The better results come mainly from the sugar segment, although Südzucker does see some dark clouds looming on the horizon.
The quarterly figures of the German sugar group cover the period from 1 September to 30 November 2020. In the first 3 quarters of the current financial year, Europe's largest sugar producer achieved an operating profit of €195 million, 72,5% more than last year. year. However, Südzucker says in a statement that he has been feeling the negative effects of the stricter corona measures in the European Union since mid-October. The strict lockdowns that have been announced in Germany and the Netherlands in recent days will not help with that either.
Lower occupancy rate
Südzucker emphasizes that it is difficult to estimate the effects of the corona crisis in the coming period. This makes it difficult to determine how much sugar the group can sell in the coming weeks and months and what this means for the price in the contracted volumes. In addition, the capacity utilization in the factories is lower than expected, due to persistent drought and crop damage by insects in some cultivation areas.
As the fourth and final quarter is always seasonally weaker, Südzucker expects group sales for the 2020/21 fiscal year of between €6,6 and €6,8 billion. The group's operating result is expected to improve significantly. From €116 million in the year 2019/20 to €190 to €240 million for the current financial year 2020/21.
Eric the Thrush
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