Südzucker: Significant losses in the sugar segment
January 10, 2019 at 11:27 AM ,
Der AUDITOR
Outlook has been confirmed
In the first three quarters of the fiscal year (1 March 2018 - 30 November 2018), the group generated consolidated revenues of EUR 5.192 million (previous year: EUR 5.302 million). The sugar and CropEnergies segments are responsible for the losses. By contrast, the Special Products and Fruit segments have prevented further declines. The Südzucker AG continues to anticipate group consolidated revenues of EUR 6.6-6.9 billion for the financial year as a whole (previous year: EUR 7.0 billion).
Group continues to struggle with sugar
In the sugar market, revenues have been declining since October 2017. Although this situation does not come as a surprise to the Südzucker AG, the crop losses prompted by drought represent an additional burden in the third quarter. Exports were significantly lower than in the same quarter of last year. Only sales developed positively in the third quarter. The Südzucker AG has, nevertheless, been confronted with an operating result of EUR -83 million in Q1-Q3 of 2018/19 (2017/18: EUR 150 million).
In the current processing campaign, the group expects to produce 4.7 million mt of sugar from 29.6 million mt of sugar beets (prior year: 5.7 million mt of sugar from 36.0 million mt of sugar beets). Although the beet yields are below average due to the summer drought, the sugar content is above average. The processing campaign will be completed by the end of February and will be 113 days shorter than last year (133 days).
Frozen pizza generates revenue growth
The price decline for bioethanol reduced the operating profit in the CropEnergies division to EUR 19 million (previous year: EUR 59 million) and caused production to be suspended in Wilton. By contrast, the special products segment recorded an increase in revenues to EUR 1,710 million (previous year: EUR 1,447 million). At EUR 118 million, the operating result is slightly higher than last year’s (EUR 116 million). This positive development was boosted by the acquisition of the frozen pizza manufacturer Richelieu Foods Inc. and the increased sales revenues for ethanol in the starch segment. In the fruit segment, higher sales volumes resulted in stable revenues of EUR 890 million (prior year: EUR 884 million). In addition, the higher margins on sales revenues have nominally raised the operating result to EUR 62 million (prior year: EUR 59 million).
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