Suedzucker upbeat on new fiscal year results despite Ukraine war

CropEnergies AG

14/04/2022 14:09

HAMBURG, April 14 (Reuters) - Europe’s largest sugar
producer Suedzucker  SZUG.DE  on Thursday forecast increased
earnings in its new financial year despite disruption to
commodity markets from the war in Ukraine.
    The company said in an advance release of forecasts that it
expects full-year operating profits in its new 2022/23 year of
300 million euros to 400 million euros ($325.92 to $434.56
million).
    Suedzucker had only on April 4 also made an advance
announcement of a rise of almost 40% in full-year 2021/22
operating profit to 330 million euros as improved sugar and
bioethanol markets boosted earnings.  urn:newsml:reuters.com:*:nL5N2W24BW
    Suedzucker said it expects “significantly higher” operating
profit in the first quarter of its new financial year starting
on March 1 against the 49 million euros in last year’s first
quarter.
   "The forecast for the first quarter and the full year is
based on the assumption that the Ukraine war will remain
temporary and regionally limited, that the physical supply of
energy and raw materials is guaranteed," Suedzucker said. 
    "Suedzucker's expected transfer of the significantly higher
prices, especially in the raw material and energy sectors, into
new customer contracts will be of decisive importance."
    Raw sugar futures rose to the highest level in nearly five
months on Wednesday, boosted by stronger energy prices and a
slow start to the cane harvest in Centre-South Brazil.
 urn:newsml:reuters.com:*:nL2N2WB126 
    A Suedzucker spokesman declined further comment on the
reasons behind the positive outlook given on Thursday. 
    Suedzucker unit CropEnergies  CE2G.DE , which produces the
green fuel bioethanol, also gave an optimistic outlook for its
new year on Thursday.  urn:newsml:reuters.com:*:nFWN2WC0TB
    Suedzucker said it will publish its detailed outlook for the
new year with its 2021/22 annual report on May 19 and the
quarterly report for the first quarter of 2022/23 on July 7.
    ($1 = 0.9205 euros)

 (Reporting by Michael Hogan;
Editing by Bernadette Baum)
 ((michael.j.hogan@thomsonreuters.com; +49 172 671 36 54;
Reuters Messaging:
michael.hogan.thomsonreuters.com@reuters.net))