Südzucker - Q1 update: weak performance as expected; FY guidance confirmed

Davy Research
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Sudzucker’s first-quarter update confirms a weak start to the year as unprofitable sugar marketing year (SMY) 2018/2019 sugar contracts weigh on group earnings. While the Sugar operating result was slightly better than anticipated, management has maintained its FY guidance for a Sugar operating loss of €200-300m. Earnings will be H2-weighted as higher EU spot prices feed into 2019/2020 contracting.