Suedzucker Q3 profit surge 21%, maintains annual view on strong sugar market (updated)

Suedzucker AG

11/01/2024 07:20

(Adds comment from spokesperson, details)
       HAMBURG, Jan 11 (Reuters) - Europe's largest sugar
producer Suedzucker  SZUG.DE  on Thursday reported a 21% jump in
its third-quarter operating profit, helped by a strong sugar
market, while maintaining its full-year outlook.
    Suedzucker reported operating profit of 268 million euros 
($294.16 million) for the quarter ended Nov. 30, up from 220
million euros a year earlier. 
    The company said it expected high sugar prices in coming
months to compensate for increased raw materials costs.
    Suedzucker confirmed its 2023/24 operating profit forecast
of between 900 million euros and 1 billion euros, up from 704
million euros last year.
    Raw sugar futures hit 12-year highs in November as world
supply tightness continued but have since dropped from their
peaks.
    "We remain optimistic for the full year with the world sugar
market expected to remain firm," a Suedzucker spokesperson said.
    "The world market is seeing a slight increase in inventories
but at an overall modest level, however the fundamental picture
on the world market remains favourable for us."
    The company expects a European sugar beet harvest of normal
volumes, which will give it satisfactory supplies to sell at
favourable prices, he added.
    Suedzucker said it expected the European Union (EU) to
remain a net sugar importer.
    The company said it is concerned about the EU's decision to
allow solidarity imports from Ukraine to support the country
"which has resulted in an almost uncontrolled increase in
Ukrainian sugar imports by the EU".
    Before the war, the EU imported about 20,000 metric tons of
Ukrainian sugar annually, he said. 
    "In the year 2022/23 sugar imports from Ukraine reached
about 400,000 (metric) tons and for the current year 2023/24
imports of 650,000 tons are expected which is significant in an
EU sugar market totalling 15 million tons a year," the
spokesperson said, adding, this created uncertainty for
Suedzucker.

 (Reporting by Michael Hogan, editing by Miranda Murray and
Rashmi Aich)
 ((michael.j.hogan@thomsonreuters.com; +49 172 671 36 54;
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