Südzucker expects further decline in earnings

Business figures - Südzucker expects further decline in earnings

Sugar manufacturer expects a significant earnings decline for the second business quarter. The start of the quarter was subdued, the company announced in Mannheim. The sales and procurement markets remained volatile due to the Ukraine War. The further development of the burdens from the extended tariff-free, volume-limited access to agricultural imports from Ukraine granted by the EU remains uncertain. In addition, the effects of the war in the Middle East are difficult to assess.

Therefore, the Ebitda result and the operational result for the second quarter are likely to be below the previous year's figures of 383 million and 310 million Euro, respectively.

The annual forecast confirmed Südzucker, but it continues to assume declining earnings. The group revenue for 2024/25 (as of the end of February) is expected to be between 10.0 billion and 10.5 billion Euro, Ebitda between 900 million and 1.0 billion Euro, and the operational result between 500 million and 600 million Euro.

Already in mid-April, the sugar producer had announced an earnings decline for the first quarter. These figures, Südzucker will present on Thursday.

1. Despite the grant of tariff-free, volume-limited access to agricultural imports from Ukraine by the EU, the volatility in the sales and procurement markets in Ukraine due to the war continues to pose uncertainty for Südzucker's business quarter.
2. The significant earnings decline expected by Südzucker for the second business quarter is partly due to the challenging conditions in the agricultural and food industries, heavily impacted by global conflicts such as the Ukraine War and the Middle East.
3. The Business Quarter in Mannheim, where Südzucker is based, has been affected by the decline in earnings, as the company continues to face challenges in its key sectors, including agriculture and food trade, due to the geopolitical instability.
4. The EU, a significant trading partner for Südzucker, has had to contend with the impact of the conflict in Ukraine on its business number, leading to a decline in earnings for the second quarter, further reflecting the global repercussions of the war.
5. The quarterly figures for Südzucker, a major sugar manufacturer headquartered in Mannheim, have seen a noticeable decline in earnings due to various factors, with the Ukraine War and the subsequent market volatility being a significant contributor.

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