Suedzucker lifts full-year guidance on higher biofuels demand (updated)
UPDATE 2-Suedzucker lifts full-year guidance on higher biofuels demand Adds share move in paragraph 2, earnings in paragraph 7, full results date in paragraph 8
By Tristan Veyet
Sept 28 (Reuters) - Suedzucker SZUG.DE, Europe's largest sugar producer, raised revenue and operating core earnings expectations for the 2026/27 financial year, as higher demand for biofuels supports the firm's earnings.
Shares rose 7.1% by 0818 GMT and were on track for their best day since March 2026. The stock is up 42.2% year-to-date.
The Germany-based company now expects revenue of €8.3 billion to €8.7 billion ($9.4 billion to $9.9 billion) this year, up from its previous forecast of €8.1 billion to €8.5 billion.
The US-Israeli war against Iran and the subsequent closure of the Strait of Hormuz drove up demand for biofuels, as disruptions to oil and natural gas supplies supported alternative fuels.
German biofuels producer Verbio VBKG.DE also reported in September higher annual sales as demand for biofuels grew.
Suedzucker raised the lower end of its operating core earnings forecast, now expecting €540 million to €680 million, compared with its previous guidance of €480 million to €680 million.
For the second quarter, Suedzucker reported earnings before interest, tax, depreciation and amortization (EBITDA) of 168 million euros, up 80% from a year earlier.
The company is due to publish its half-year report on Oct. 8.
($1 = 0.8790 euros)
(Reporting by Tristan Veyet in Gdansk, editing by Bartosz Dabrowski)