Adds particulars, remark from spokesperson, and background
HAMBURG, July 8 (Reuters) – Suedzucker SZUG.DE on Thursday confirmed a drop in first-quarter earnings as Europe’s largest sugar producer confronted an financial fallout from the coronavirus pandemic, although it expects revenue to climb in its full monetary yr.
Suedzucker stated group working revenue dropped 20.1% on-year to 49 million euros ($58 million) within the first quarter ended Might 31.
The corporate confirmed it nonetheless expects full-year group working revenue of 300 million to 400 million euros, up from 236 million euros final yr.
The corporate had made a restricted superior announcement of its earnings final month.
Its full-year working revenue is forecast at between breakeven and 100 million euros.
“We anticipate an enchancment within the EU sugar market from October 2021 and likewise anticipate to realize larger sugar gross sales costs within the second half of the enterprise yr,” a Suedzucker spokesperson instructed Reuters.
“The EU is predicted to stay a web sugar importer with the general European sugar provide image wanting tight. With world sugar costs more likely to agency, this must also imply larger EU sugar costs in coming months.”
Uncooked sugar futures this week hovered round four-month highs as crop harm in high producer Brazil after frost was assessed.
“We now have barely expanded our sugar beet space for the brand new harvest,” the spokesperson added. “We’re additionally hoping that the final financial framework will enhance with the affect of COVID-19 declining as extra persons are vaccinated.”
Suedzucker’s 2021 sugar beet plantings are up 3.1% at 353,600 hectares.
The corporate’s first-quarter numbers have been dented by working losses of 25 million euros within the sugar sector, wider from an working lack of 16 million euros a yr earlier.
(Reporting by Michael Hogan, enhancing by Riham Alkousaa and Sherry Jacob-Phillips)
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