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Suedzucker raises full-year guidance, plans to pass price increases onto customers
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(Reuters) -Europe’s largest sugar producer, Suedzucker, on Wednesday increased its full-year guidance, saying it expects to pass price increases in raw materials and energy on to new customer contracts.
(Reuters) -Europe’s largest sugar producer, Suedzucker, on Wednesday increased its full-year guidance, saying it expects to pass price increases in raw materials and energy on to new customer contracts.
Suedzucker shares rose 3.4% as of 1105 GMT after the company said it now expected revenues of 8.9-9.3 billion euros ($9.3 billion-$9.7 billion), earnings before interest, tax, depreciation and amortization (EBITDA) of 760-860 million euros and an operating result of 400-500 million euros.
The group previously expected revenues of 8.7-9.1 billion euros, EBITDA of 660-760 million euros and an operating result of 300-400 million euros.
Raw sugar futures rose to the highest level in nearly five months in April and are still 7% higher compared to June last year.
The company added that the forecast was based on the assumption that the war in Ukraine was temporary and regionally limited, that the physical supply of energy and raw materials is assured, and that sales and procurement markets will return to normal to some extent in fiscal year 2022/23.
Suedzucker unit CropEnergies, which produces the green fuel bioethanol, also hiked its full-year guidance on Wednesday.
In the first quarter, the group reported EBITDA of 230 million euros, up by 90% compared with last year.
($1 = 0.9544 euros)
(Reporting by Bartosz Dabrowski in Gdansk, Editing by Miranda Murray)
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric used to evaluate a company's operating performance by focusing on earnings generated from core business operations.
Revenue is the total income generated by a company from its business activities, typically from the sale of goods and services, before any expenses are deducted.
Raw materials are the basic materials used in the production of goods. They are essential inputs for manufacturing and can include natural resources like metals, wood, and agricultural products.
An operating result refers to the profit a company makes from its core business operations, excluding any income derived from non-operational activities or expenses.
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