European sugar producer Südzucker AG has lifted its forecast for the 2023/24 financial year after preliminary figured showed better-than-expected performance in its financial year ended 28 February 2023.
Südzucker expects an increase in group revenues in the 2023/24 financial year, with group EBITDA ranging between €1.1 and €1.3 billion approximately, up from its previous forecast of 1.0 to 1.2 billion.
Group operating profit expected to be in a range of €725 and €875 million, up from its previous projection of €650 to €850 million.
The organisation noted that these projections are based on the assumption that the energy supply situation will stabilise and Südzucker will continue to benefit from the early hedging of energy prices.
Along with the restructuring measures implemented in 2019, the sugar segment will continue the turnaround it initiated - after several years of high losses - and contribute in improving group results in the financial year 2023/24, Südzucker added.
Südzucker AG's executive board has decided to propose a dividend of €0.70 (2021/22: 0.40) per share for the 2022/23 financial year. The decision is subject to a corresponding resolution by the supervisory board.
Consolidated revenue at Südzucker amounted to €9.5 billion in its 2022/23 financial year, up from €7.6 billion in 2021/22, according to preliminary data.
EBITDA increased to €1.1 billion in this period, from €692 million in the the previous financial year.
Group operating profit also increased to about €704 million, from €332 million in 2021/22.
Südzucker added that it expects 'a good start' to the 2023/24 financial year with 'significant' growth in group EBITDA and group operating profit in the first quarter.
It will publish the full report for its financial year 2022/23 on 25 May 2023.