Adds touch upon continued threat, market background
HAMBURG, June 16 (Reuters) – Suedzucker SZUG.DE, Europe’s largest sugar producer, on Wednesday reported decrease first-quarter earnings as a result of coronavirus pandemic, however remained optimistic that earnings would rise in its full monetary 12 months.
Suedzucker introduced that preliminary group working earnings dropped to 49 million euros ($59.37 million) within the first quarter in its 2021/22 12 months ending Could 31, from 61 million final 12 months.
Turnover rose to 1.75 billion euros from 1.67 billion final 12 months. The corporate is because of announce full quarterly outcomes on July 8.
The pandemic led to “quite a few distortions” within the first-quarter outcomes, Suedzucker mentioned in an announcement.
“Regardless of anticipated lowering results from the coronavirus pandemic, there are nonetheless dangers linked to the pandemic in enterprise 12 months 2021/22,” the corporate mentioned. “The respective financial and monetary impression and length continues to be troublesome to evaluate.”
Suedzucker made the advance announcement as a result of its enterprise sectors are reacting in another way to the pandemic, and the first-quarter outcomes are weaker than a 12 months in the past, a Suedzucker spokesperson mentioned.
“We’re nonetheless analysing the explanations. We stay optimistic for the total 12 months, with the expectation that the impression of the pandemic will decline,” the spokesperson mentioned.
Together with sugar, the group produces biofuels and processed meals akin to pizzas and meals components.
Suedzucker on Wednesday affirmed that it nonetheless anticipated full-year consolidated group working earnings of 300 million to 400 million euros, up from 236 million euros the prior 12 months.
“World sugar costs stay agency however this worth impression shouldn’t be but totally seen in Europe,” the spokesperson mentioned.
New York sugar futures hit their highest in practically 4 years in February on tightening world provides however dipped in June on enhancing harvest outlooks in a number of key producing international locations.
Suedzucker in Could gave an upbeat outlook for its monetary 12 months, with sugar demand anticipated to rise as retail and hospitality sectors restart after coronavirus lockdowns.
(Reporting by Michael Hogan, enhancing by Richard Chang and Cynthia Osterman)
((michael.j.hogan@thomsonreuters.com; +49 172 671 36 54; Reuters Messaging: michael.hogan.thomsonreuters.com@reuters.web))
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