Suedzucker operating profit surge 21%

Europe's largest sugar producer Suedzucker reported a 21% jump in its third-quarter operating profit, helped by a strong sugar market, while maintaining its full-year outlook.

It is reported by Reuters.

Suedzucker reported operating profit of 268 million euros ($294.16 million) for the quarter ended Nov. 30, up from 220 million euros a year earlier.

The company said it expected high sugar prices in coming months to compensate for increased raw materials costs.

Suedzucker confirmed its 2023/24 operating profit forecast of between 900 million euros and 1 billion euros, up from 704 million euros last year.

Raw sugar futures hit 12-year highs in November as world supply tightness continued but have since dropped from their peaks.

"We remain optimistic for the full year with the world sugar market expected to remain firm," a Suedzucker spokesperson said.

"The world market is seeing a slight increase in inventories but at an overall modest level, however the fundamental picture on the world market remains favourable for us."

The company expects a European sugar beet harvest of normal volumes, which will give it satisfactory supplies to sell at favourable prices, he added.

Suedzucker said it expected the European Union (EU) to remain a net sugar importer.