Germany’s Nordzucker profit rises sharply, expects tougher year ahead (updated)

Suedzucker AG

23/05/2024 14:40

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      Net profit jumps to 326 mln euros from 182 mln a year ago
    

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      World sugar prices expected to decline
    

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      Does not expect to be able to sustain performance
    

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      Looking for acquisitions in cane sugar sector - CEO
    

  
 (Adds CEO comments on possible takeovers paragraphs 7-10)
       HAMBURG, May 23 (Reuters) - Germany's second largest
sugar refiner Nordzucker reported a 79% surge in annual profits
on Thursday as high sugar prices offset rising costs, though it
cautioned falling markets could pressure results in the current
year.
    Unlisted Nordzucker posted a 326 million euro ($353.5
million) net profit for its 2023/24 financial year to
end-February, one of its best ever performances after 182
million euros profit the previous year.
    Nordzucker's Australian subsidiary Mackay Sugar contributed
27 million euros to operating profits while group sales rose
29.3% to 2.9 billion euros. 
    "The main reason for this is a higher price level for sugar
compared to the previous year, which more than compensated for
the significant cost increases for raw materials and energy
supply, as well as in logistics," Nordzucker said in a
statement.
    "However, another record year is not to be expected in view
of declining prices and volatile markets," it said. "We
currently do not expect results at this level to be achievable
in the coming years." 
    "World market prices for sugar are expected to decline," it
said, citing increasing production capacity in the EU and
imports from Ukraine among other factors.
    Five years after the takeover of Mackay Sugar, Nordzucker is
again considering acquisitions in the cane sugar sector, CEO
Lars Gorissen told Reuters after a press conference.
    Mackay Sugar’s strong performance showed that “cane sugar is
a good development field for Nordzucker,” Gorissen said.
    He said a range of takeover possibilities in the cane sector
were being considered, this time outside Australia.
    “This involves a wide range in Africa, Asia and South
America,” he said. Talks had been held last year without
agreement and efforts continue, he said. 

 (Reporting by Michael Hogan; Editing by Jan Harvey and Elaine
Hardcastle)
 ((michael.j.hogan@thomsonreuters.com; +49 172 671 36 54;
Reuters Messaging:
michael.hogan.thomsonreuters.com@reuters.net))