Suedzucker AG (SUEZF) Q1 2025 Earnings Call Highlights: Navigating Profitability Challenges ...

GuruFocus News
4 min read

In This Article:

  • Group Revenue: Increased by 1% to EUR2.6 billion.

  • Group EBITDA: Decreased by 35% to EUR230 million.

  • Group Operating Results: Down by 45% to EUR155 million.

  • Cash Flow: Decreased to EUR178 million.

  • Net Financial Debt: Reduced by EUR330 million compared to the prior year, standing at EUR1.6 billion.

  • Sugar Segment Revenue: Increased significantly due to higher sales volumes.

  • Sugar Segment Operating Results: Declined due to increased production costs.

  • Special Products Segment Revenue: Decreased to EUR579 million.

  • Special Products Segment Operating Results: Increased due to higher margins.

  • CropEnergies Revenue: Decreased to EUR231 million.

  • CropEnergies Operating Results: Declined to EUR6 million with a margin of 2.6%.

  • Starch Segment Revenue: Decreased to EUR250 million.

  • Starch Segment Operating Results: Declined to EUR6 million.

  • Fruit Segment Revenue: Increased to EUR415 million.

  • Fruit Segment Operating Results: Increased to EUR27 million.

  • Earnings Per Share: EUR0.36.

  • Cash Flow Per Share: EUR0.87.

  • Full Year Revenue Guidance: Expected between EUR10 billion to EUR10.5 billion.

  • Full Year Operating Profit Guidance: Expected between EUR500 million and EUR600 million.

  • Full Year EBITDA Guidance: Expected between EUR900 million to EUR1 billion.

Release Date: July 11, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Suedzucker AG (SUEZF) confirmed its full-year guidance for fiscal year 2024-2025, indicating confidence in its overall business strategy.

  • Group revenues increased by 1% to EUR 2.6 billion, driven by growth in the sugar and fruit segments.

  • Net financial debt decreased by EUR 330 million compared to the previous year, reflecting improved financial health.

  • The fruit segment showed a positive trend with increased sales volumes and stable margins, leading to higher operating results.

  • The special products segment experienced an increase in operating results due to higher margins, despite a moderate decrease in revenues.

Negative Points

  • Group EBITDA decreased by 35% to EUR 230 million, and operating results fell by 45% to EUR 155 million, indicating a significant decline in profitability.

  • The sugar segment faced a strong decline in operating results due to increased production costs and moderately declining prices.

  • CropEnergies segment revenues were significantly down due to lower ethanol prices, impacting operating profit.

  • The starch segment experienced a significant decline in revenues and operating profit due to falling prices for ethanol and some starch products.

  • The company anticipates volatility in sugar prices due to weather conditions and geopolitical factors, which could impact future earnings.

Recommended Stories