Südzucker - Scope for CropEnergies to almost reach previous profit highs

Davy Research
/Read Important Disclosures

Südzucker’s listed bioethanol subsidiary, CropEnergies, reported a 28% increase in revenues to €214.8m on the back of higher ethanol and food/animal feed volumes as Ensus was brought back on-stream (since July 2016). This is the first year-on-year (yoy) revenue increase this year. However, the lower yoy level of ethanol pricing and the Ensus operating costs meant that operating profit was down 22% to €18.4m – albeit better than internal expectations.

Headline Q3 numbers and upgraded FY guidance were already released in an ad-hoc statement in December. At that point, FY operating profit guidance was pitched in a €70-85m range (previously €50-80m). Südzucker will report Q3 results on January 12th.