HAMBURG, Might 20 (Reuters) – Suedzucker SZUG.DE confirmed on Thursday an increase in full yr earnings as Europe’s largest sugar producer lower losses in its core sugar sector and gave an upbeat outlook for its new monetary yr.
The corporate affirmed working revenue in its 2020/21 monetary yr to finish February rose to 236 million euros ($287.90 million) from 116 million euros within the earlier yr, helped by firmer sugar costs and a company restructuring programme.
It had made an advance launch on earnings on March 24.
Suedzucker gave a brand new forecast of group working revenue for its 2021/22 fiscal yr of between 300 million and 400 million euros. The outlook is determined by the financial and monetary influence of the COVID-19 pandemic, it stated.
The sugar sector reported a 2020/21 working lack of 121 million euros, down from a 236 million euro loss the earlier yr.
“The development was pushed primarily by greater sugar gross sales revenues as a result of value will increase in the beginning of the 2019/20 and 2020/21 sugar advertising and marketing years,” the corporate stated.
This greater than offset decrease gross sales volumes, greater manufacturing prices and decrease capability utilization on account of a smaller cultivation space and below-average beet yields throughout 2020.
Sugar futures hit their highest in practically 4 years in February, buoyed by tightening short-term provides, and remained supported in Might amid hovering ethanol costs and considerations over high producer Brazil’s sugar cane crop.
Suedzucker estimates that the sugar sector’s 2021/22 end result will vary between break-even and an working revenue of 100 million euros.
Excessive uncooked supplies prices are anticipated to cloud the outlook for Suedzucker’s ethanol unit CropEnergies CE2G.DE.
($1 = 0.8197 euros)
(Reporting by Michael Hogan, modifying by Emelia Sithole-Matarise)
(([email protected]; +49 172 671 36 54; Reuters Messaging: [email protected]))
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.