European sugar refiner Südzucker has forecast a ‘significant decline’ in profits in the first quarter, after a slow start to its 2024/25 financial year.
Südzucker expects group revenues of €10 billion to €10.5 billion for the 2024/25 financial year, with EBITDA ranging between €900 million and €1 billion, and operating group earnings of €500 to €600 million.
The company attributed the decline in earnings to higher production costs from its 2023 campaign in the sugar segment.
Südzucker added that the economic and financial impact of some recent, temporary and exceptional situations is difficult to assess.
These include uncertainty due to the ongoing war in Ukraine, agricultural imports therefrom, and the effects of the war that erupted in the Middle East last October.
Dividend
The executive board of Südzucker AG has proposed to the annual general meeting a dividend of €0.90 (2022/23: €0.70) per share for the 2023/24 financial year.
A supervisory board meeting is scheduled for 15 May, and the annual general meeting is to take place on 18 July.
Südzucker generated group revenues of €10.3 billion in its 2023/24 financial year to end February 2024, according to preliminary figures.
EBITDA increased to €1.3 billion, within the forecast range of €1.3 to €1.4 billion, while the consolidated operating result increased to around €950 million.
Südzucker will publish its annual report for its 2023/24 financial year, including a detailed forecast for the 2024/25 financial year, on 16 May 2024.
In January of this year, the company upheld its outlook for the 2023/24 financial year and added that it expects consolidated group revenue to range between €10.0 and €10.5 billion.
In the first nine months, it witnessed group revenue growth of around 10%, to €7.8 billion, from €7.1 billion in the previous year.
