BERLIN (dpa-AFX) - German sugar producer Suedzucker AG (SUEZF.PK) on Thursday confirmed its cautious outlook for fiscal 2019 amid weakness in sugar segment, despite reporting higher net earnings in fiscal 2018. The company also confirmed its unchanged dividend. In Germany, Suedzucker shares were losing around 3 percent in the morning trading.
For the current fiscal year 2018/19, consolidated group revenues are still expected to range between 6.8 billion euros and 7.1 billion euros. This is compared to prior year's revenues of 6.98 billion euros. In the new year, sugar segment's revenues are expected to drop sharply, while CropEnergies segment's revenues should range between EUR 760 and 820 million, compared to 808 million euros a year ago. The special products and fruit segments' revenues are expected to rise substantially.
Further, the company continues to expect consolidated group operating result to decline considerably to between 100 million euros and 200 million euros, driven mainly by the sugar segment's substantially lower results. In 2018, operating result was 445 million euros, higher than prior year.
The severe drop in sugar prices to a historic low can by no means be offset by lower production costs and higher sales volumes. As a result, the sugar segment is expected to post an operating loss ranging between 100 million euros and 200 million euros, compared to profit of 139 million euros.
The company earlier noted that, despite the current difficult framework for sugar, it expects an EBITDA level of 420 million euros to 520 million euros.
In fiscal 2018, net earnings were 318 million euros, higher than 312 million euros a year ago, and EBITDA grew 6.8 percent 758 million euros.
Further, the executive and supervisory boards will jointly recommend at the annual general meeting on July 19 that the dividend paid for fiscal 2017/18 remain unchanged at 0.45 euro per share.
In Germany, Suedzucker shares were trading down 2.96 percent.
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