MANNHEIM (dpa-AFX) - Südzucker is becoming more optimistic after what the company says has been a good start to the 2023/24 financial year. According to a statement on Tuesday, the SDax-listed company expects consolidated operating profit of between EUR 725 and 875 million in the year ending February. Previously, the expectation was 650 to 850 million euros. This forecast is based on the assumption that the energy supply situation will stabilize and that the company will continue to benefit from the energy prices secured before the start of the Ukraine war. In addition, it is assumed that the EU will also confirm the sugar price level for 2023/24.

The Mannheim-based company's share price rose sharply. Up a good nine percent to 17.79 euros, a high since January 2018, a trader said in an initial reaction, praising the company's raised outlook for the 2023/24 financial year and the results for 2022/23, which were a positive surprise. In addition, sugar prices would continue to rise.

The shares had already risen significantly the previous day, despite the key data of the biofuel subsidiary Cropenergies, which were significantly less good. Within four trading days, Südzucker's share price gains have now totaled around 16 percent. Cropenergies shares rose by one percent on Tuesday.

The past financial year went even better than expected for Südzucker. Operating profit rose to 704 million euros - which was not only more than twice as much as a year earlier, but also more than forecast. At 9.5 billion euros, sales were also up on the previous year.

Südzucker intends to pay its investors a significantly higher dividend. For the past fiscal year 2022/2023, management is proposing 0.70 euro per share, up from 0.40 euro last year. Südzucker will present its full annual report on May 25.

Less encouraging news came from Südzucker's subsidiary Cropenergies on the previous evening. The biofuel producer expects a decline in revenues and operating profit in the current 2023/24 financial year due to significantly lower ethanol prices. The price is significantly below the record value of the previous year, the Südzucker subsidiary announced on Monday evening in Mannheim. Lower ethanol revenues than in the past record year 2022/23 (end of February) are thus expected.

Overall, 2023/24 revenues are expected to fall to between EUR 1.27 billion and EUR 1.37 billion (previous year: 1.49 billion). Operating profit is expected to fall even more significantly to 95 to 145 million euros (prior year: 251 million euros). Cropenergies expects earnings before interest, taxes, depreciation and amortization (Ebitda) to slump to between 140 and 190 million euros (previous year: 294 million euros).

A significant decline in sales, Ebitda and operating profit is also expected for the first quarter (to the end of May), the company added. The main reasons were normalized prices for ethanol. In addition, raw material and energy costs are expected to be higher than in the same period last year.

The volatilities on the sales, raw material and energy markets, which have increased as a result of the ongoing war in Ukraine, are likely to continue in the group's view. However, the introduction of E10 in further European countries points to stable sales of fuel ethanol, although this will continue to be offset by high import volumes, it added. The full report for fiscal 2022/23 is to be published on May 24./knd/jha/mne/mis