Suedzucker Reports Surge in Q2 Operating Profit and Sales, Optimistic Outlook Amidst Uncertain Sugar Market

Suedzucker, the largest sugar producer in Europe, announced on Wednesday that its operating profit and sales in the second quarter had significantly increased. This was due to improvements in its core sugar business, as reported by Reuters.

In a preliminary earnings report, Suedzucker revealed a 25% increase in group operating profit for the second quarter of the current fiscal year (ending in August), reaching approximately €85 million. Sales also grew by 10% to €1.84 billion.

The quarterly operating profit for the sugar business was around €7 million, compared to a loss of €42 million for the same period last year.

In July, Suedzucker expressed optimism that its results would improve compared to expectations of economic consequences from the pandemic.

"We have achieved improvement in the sugar sector partly due to cost reductions and sugar price increases. The overall sugar market outlook still remains uncertain due to the pandemic. However, we hope that greater progress in combating the pandemic will be made in the coming months," said a representative of Suedzucker to Reuters.

In August, sugar futures reached a four-year high due to concerns over crop reductions in Brazil.

The company reiterated its forecast for group operating profit in the 2021/22 fiscal year, expecting it to range from €300 to €400 million, compared to €236 million in the previous year.