Suedzucker sees Q3 operating result significantly up on year (updated)

CropEnergies AG

15/11/2023 13:55

(Adds comment from spokesperson paragraphs 4,5,10,11)
       Nov 15 (Reuters) - Europe's largest sugar refiner
Suedzucker  SZUG.DE  expects increased operating profits in its
third quarter, driven by higher sugar prices, it said on
Wednesday.
    The company also confirmed in a statement its outlook for
the full fiscal year 2023/24 which was raised in October. 
    Suedzucker said it expects operating profit in the third
quarter ending Nov. 30 “to be significantly higher” than the
previous year's level of 220 million euros ($239.07 million). 
    "We remain in a very positive environment in our sugar
sector with higher prices than last year,” a spokesperson told
Reuters. “Suedzucker has been able to recover the higher costs
we face including for energy, logistics and packing in the sugar
market.”
    “We remain optimistic, with a good sugar harvest also being
gathered for processing this autumn and winter while demand
remains strong.”
    Raw sugar futures hit 12-year highs on Nov. 7 with supply
tightness expected to continue as an El Nino weather event
curtails production in major producers India and Thailand.
    Germany's sugar production this season will rise 9.8% on the
year, Germany's sugar industry association said on Wednesday.
    Suedzucker in October said second quarter profits had more
than doubled.
    It said on Wednesday results still depended on the impact of
market volatility caused by the war in Ukraine. 
        "Heavy sales of Ukrainian sugar in the EU remain a
problem after the EU gave special duty-free access to its
markets for some Ukrainian agricultural products,” the
spokesperson said.
    “Estimates are that Ukraine will sell about 500,000 to
700,000 (metric) tons of sugar in the EU market this year
against about 20,000 tons previously, which will have a
distorting impact on market demand,” he said.
    Suedzucker will announce quarterly results on Jan. 11.

 (Reporting by Anastasiia Kozlova, Amir Orusov and Michael
Hogan, editing by Linda Pasquini and Elaine Hardcastle)
 ((Anastasiia.Kozlova@thomsonreuters.com;
Amir.Orusov@thomsonreuters.com))