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Südzucker: Operating loss expected for sugar in 2018/19

March 27, 2018 at 10:23 AM , Der AUDITOR
Südzucker has been hit hard by the abolishment of the EU sugar quota system.
Südzucker has been hit hard by the abolishment of the EU sugar quota system.
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MANNHEIM. At the beginning of the week, the German-based Südzucker AG has announced preliminary figures für the financial year 2017/18 and first estimates for 2018/19.

 

Positive figures for 2017/18

Südzucker reckons with an increase in group revenues for the financial year 2017/18 (March 2017 to February 2018) in stating that a rise to EUR 7.0 billion is expected. In 2016/2017 revenues amounted EUR 6.5 billion (-4.5%). The driving force for this increase is the sugar segment.

The sugar giant intends to recommend an unchanged dividend of 0.45 EUR/share for the financial year 2017/18 at the annual general meeting, which will take place on 19 July. For 2018/19 the outlook is, however, completely different.

Significant losses in 2018/19

For the financial year 2018/19 group revenues are expected to remain relatively stable at EUR 6.8-7.1 billion. Operating results are, however, to drop significantly to EUR 200 or even 100 million – a drop by more than 50% as operating results reached as much as EUR 440 million in 2017/18. Herby an operating loss of EUR 100-200 million is expected in the sugar segment. The earnings improvements in the special products and fruit segments are not able to compensate the loss.

The liberalization of the EU sugar market has hit the company hard. On 01 October 2017 sugar production quotas, minimum prices and export limitations were abolished leaving the sugar producers confronted with the falling prices and the surplus production in the global market.

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