Result Südzucker on the rise until the corona crisis

Südzucker, the largest sugar producer in Europe, sees a significant improvement in its operating result. This is apparent from the provisional figures for the 2019/2020 financial year. It is doubtful whether this positive development can be continued with the current corona pandemic.

After all, the past financial year ended on February 29, exactly during the period when the corona crisis was unfolding in full force. Over the past financial year, Südzucker saw its operating result rise by €89 million to €116 million compared to the 2018/2019 financial year. Revenue came in at €6,7 billion, slightly less than the €6,8 billion the year before.

More biofuel
The figures are in line with the forecast that the company presented last autumn. The strong demand for renewable ethanol in particular prompted expectations upwards to adjust. The provisional figures for the 2019/2020 financial year confirm this: the CropEnergies and special products divisions in particular show an increase. CropEnergies posted a record result of €104 million (versus €33 million in 2018/2019). 

Whether Südzucker can maintain the positive results in 2020/2021 is closely related to the current corona crisis. The financial consequences and the duration of the exceptional circumstances cannot yet be foreseen, according to the company. For the current financial year, the original forecast is therefore retained for the time being, which is based on a turnover of between €6,9 and €7,2 billion. The operating result goes to €300 to €400 million, mainly due to the positive developments in the sugar market foreseen by the producer. 

More ethanol for disinfection
The result for the CropEnergies business segment in 2020/2021 is largely determined by the price development on the European ethanol markets. The prospects in the medium term are still good, due to the focus on climate. In the short term, pressure on sales volumes and prices is inevitable.

CropEnergies therefore did not see an increase in its operating result in the first quarter. The increased use of ethanol for disinfectants may (partly) compensate for the reduced demand for fuel. In the Netherlands Suiker Unie also started, for example with the production of hand sanitiser.

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

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