Suedzucker has increased its operating profit by 90% thanks to the growth of its sugar business.

One of the leading companies in the sugar production industry in Europe, the German food group Suedzuckerr, has announced a significant increase in operating profit in the third quarter. The main factor was the improvement in the performance of its sugar business.

In its preliminary profit and loss report, Suedzucker reported that operating profit for the three-month period until November 30 increased by 90% compared to the previous year, reaching 126 million euros. At the same time, the company's sales volume grew by 17% to 2.04 billion euros.

The company's experts noted that the majority of the financial performance improvement is related to the sugar segment. The report states that Suedzucker's sugar business generated an operating profit of approximately 9 million euros, whereas the previous year it was negative at 28 million euros.

The improvement in the sugar industry is linked to rising sugar prices and stable demand for this product. Over the past two years, sugar prices have been catastrophically low; however, due to a better balance between supply and demand in the European market, the situation has significantly improved. This allowed Suedzucker to achieve positive operating results.

By the end of October, sugar futures reached the highest levels in the past four and a half years, which also had a positive impact on the company's financial performance.

Based on these factors, Suedzucker has raised its sales forecast for the current year. It is expected that total sales will range from 7.3 to 7.5 billion euros, and the company's operating profit will be between 320 and 380 million euros.

A company representative noted that despite the impact of the pandemic, the demand for sugar remains stable. Although some sectors, such as hotels and restaurants, are facing challenges, overall sugar sales are holding steady without causing concerns. The public is acting responsibly and avoiding panic buying, as seen during lockdowns in the past. This approach is more favorable for the company compared to situations where people make bulk purchases and then stop buying goods, relying on their existing supplies.