LONDON (dpa-AFX) - German sugar producer Suedzucker AG (SUEZF.PK) Thursday said it sees a significant burden to Group net earnings in the range of 140 million euros to 180 million euros, and to Suedzucker AG net earnings in the range of 200 million euros to 240 million euros.
The burden, which will be non-cash, is related to ED&F Man Holdings Limited, London, UK, in which the company has about 35 percent participation.
Suedzucker AG executive board, based on the preliminary figures of ED&F Man business year 2019/20, concluded to significantly impair the ED&F Man participation within Suedzucker's nine month report of business year 2021.
The company in the half-year report had said that ED&F Man, as part of its strategic realignment, is focusing on its profitable trading business. The plan is to dispose of various industrial interests outside this core business that are weighing on the ED&F Man group's result.
These industrial interests are still negatively impacting the result as the execution of the measures has been delayed due especially to the coronavirus pandemic.
Suedzucker assumes that ED&F Man will close the 2019/20 financial year, which ended by September end, with a net loss for the year, in particular due to the delay in implementing the strategic realignment.
In September 2020, ED&F Man secured a three-year extension to its existing financing, thereby gaining necessary time for the strategic realignment.
With these, Suedzucker expects significantly negative implications for the group's at-equity result in business year 2020/21, which is not part of the operating result.
The ED&F Man restructuring burden will accrue especially in Suedzucker's third quarter.
In Germany, Suedzucker shares were trading at 13.32 euros, down 1.33 percent.
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