The confectionary manufacturer expects persistently high sugar prices

By: Trademagazin Date: 2024. 01. 11. 11:09

Südzucker, Europe’s largest manufacturer of confectionery raw materials, reported rising revenue and profit at the end of its third business quarter. The company is also afraid of increasing market volatility, while the temporary duty-free nature of Ukrainian agricultural exports brings further uncertainty to the market environment.

Südzucker, known throughout Europe, achieved a revenue of 2.71 billion euros in the third quarter of the business year, which is 8.8 percent higher than in the same period of the previous year. Operating profit also showed a significant increase, rising by 21.8 percent to 268 million euros. The data for the first three quarters were also favorable, the company’s sales revenue rose by 9.5 percent to 7.78 billion euros, while the operating profit increased by 60.5 percent to 860 million euros.

Examining the performance of the company’s five key business divisions, it is clear that CropEnergies, the division dealing with the production of biofuels, was the holding back force. Due to the drop in the world market price of ethanol, the segment’s income fell by 23 percent to 848 million euros. The starch production division also decreased slightly, producing 8.7 percent less revenue of 828 million euros. At the same time, the specialty products business and the fruit concentrates segment performed well, both showing significant growth.