Südzucker expects further significant increase in earnings in financial year 2023/24

In addition, the expectation of a significant increase in group EBITDA and group operating result in the third quarter of the current 2022/23 financial year, also published on 2 November 2022, is confirmed. The quarterly report for the third quarter of the 2022/23 business year will be published on 12 January 2023.

Although the current 2022/23 financial year has not yet been completed and the 2023/24 financial year still has a considerable time lag and an enormous potential range of fluctuation in the key parameters, it has been determined within the ongoing budget process for the 2023/24 financial year that a further significant increase in the group’s earnings figures should occur in the majority of possible scenarios.

Against this background, Südzucker’s initial forecast for the 2023/24 financial year (1 March 2023 to 29 February 2024) assumes a further increase in group revenues. Group EBITDA is expected to be in a range between about EUR 1.0 and 1.2 billion and group operating result in a range between EUR 650 and 850 million. This forecast is based on the assumption that the energy supply situation will stabilize and that Südzucker will continue to benefit from the energy prices that were hedged early on, even before the start of the Ukraine war, which will have a significant impact on the group’s earnings development in 2023/24 and beyond. In the sugar segment, Südzucker also expects the EU sugar price level to be confirmed for the 2023/24 sugar marketing year (October 2023 to September 2024). Together with the restructuring measures taken in 2019, the sugar segment will thus – after several years of high losses – continue the turnaround that has been initiated and make a significant contribution to the improvement of the group result in the 2023/24 financial year.

The war in Ukraine, which has been going on since the beginning of the 2022/23 financial year until today, has led to a further increase in the already high volatility on the sales markets and price increases on the procurement markets, especially in the areas of raw materials and energy. The resulting economic and financial effects as well as the duration of this temporary exceptional situation are difficult to assess in the 2022/23 financial year and beyond. In addition, risks may continue to exist in connection with the Corona pandemic.