Südzucker is expecting further group operating profit decline in financial year 2015/16
Südzucker AG, Mannheim, in financial year 2014/15 (1 March 2014 to 28 February 2015) generated group revenues of about EUR 6.8 (previous year: 7.5) billion. As expected, group operating profit significantly reduced to about EUR 180 (previous year: 622) million. While segments sugar and CropEnergies posted operating profit declines, the special products segment boosted its operating profit. The fruit segment generated an operating profit on the good prior year’s level. The result from restructuring/special items came in at about EUR -45 (previous year: -116) million, comprising amongst others: restructuring expense with regards to the reduction of administration cost in Tienen, Belgium; closure of the refinery at the site in Marseille, France; the temporary shutdown of CropEnergies’ bioethanol plant in Wilton, UK; and in Austria the concentration of fruit preparations production at one location.
Already in October 2014 and January 2015 Südzucker quarterly financial reports pointed out to the further deterioration of operating profit in sugar segment and the ongoing burdened earnings within CropEnergies segment in financial year 2015/16. Major reason is the continued unsatisfying sales revenue environment in the European sugar and ethanol markets. Against this background Südzucker for financial year 2015/16 is expecting a group revenue decline to about EUR 6.0 – 6.3 billion and a significant decrease of group operating profit to about EUR 50 - 150 million. Also the group operating profit for the first quarter in the current financial year 2015/16 will come in significantly below previous year.
Despite the prolonged difficult environment Südzucker confirms its mid-term guidance for the group operating profit of about EUR 550 million.
Publication of the annual financial report 2014/15 with a detailed guidance for financial year 2015/16 will follow on 21 May 2015.