Suedzucker raises full-year guidance, plans to pass price increases onto customers

·1-min read
A company logo of Suedzucker Group is pictured at the headquarters in Mannheim

(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)