Sugar refiner Südzucker has said that it expects full year revenues of around €6.6 billion to €6.9 billion, down from its previous forecast of €6.8 billion to €7.0 billion, the company said in a statement.
It also expects full-year group operating profit to be lower: between €25 million and €125 million, rather than the €100 million to €200 million previously forecast. Last year, the group posted group operating profit of €445 million.
The group said that this adjustment has been caused by the 'further very difficult market environment for sugar, saccharification products (starch) and ethanol'.
High Degree Of Uncertainty
It noted that the forecast for the sugar segment is 'marked by a high degree of uncertainty', due to the current challenging environment as well as a drought in many growing areas of Südzucker Group.
The group said that it posted revenues of €3.475 billion in the first half of its financial year (to 31 August), compared to €3.493 billion the previous year.
Group operating profit decreased to €139 million, compared to €282 million a year earlier, for the half year period.
In the second quarter specifically, group revenues were €1.73 billion, up from €1.71 billion a year earlier, however group operating profit more than halved, to €62 million (2017: €128 million).
The earnings decrease is caused especially by the 'decreasing results in the sugar and CropEnergies segments', the company said.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.