Suedzucker issued a projection on Monday, anticipating reduced full-year profits and indicating a notable decrease in first-quarter earnings, citing escalated sugar production costs and market instability due to conflicts in Ukraine and the Middle East, reported Reurters.
Europe’s leading sugar producer anticipates a decline in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to a range of 900 million to 1 billion euros ($0.9 to $1.0 billion) for the financial year 2024/2025. Preliminary figures indicate an 18% rise in EBITDA to 1.3 billion euros ($1.38 billion) for the preceding financial year of 2023/24.
“The ongoing conflict in Ukraine is further amplifying the already considerable volatility in sales and procurement markets,” stated the company. It expressed uncertainty regarding the persistence of negative consequences resulting from the EU’s extended duty-free access for Ukrainian agricultural imports.
Additionally, Suedzucker remarked on the challenges in assessing the effects of the Middle East conflict that commenced in October.
The company projected group revenues for the upcoming year to range between 10 billion and 10.5 billion euros, with operating group earnings estimated to be between 500 million and 600 million euros. This contrasts with revenues of 10.3 billion euros and an operating result of 950 million euros in the previous year.
Suedzucker reported an EBITDA of 356 million euros in the first quarter of the preceding year.
