A restructuring of its sugar business helped drive a jump in full-year earnings at German food ingredients group Suedzucker.
The company reported a 56% jump in operating profit to EUR403m (US$497.4m) for the year to the end of February, despite a 3% dip in sales to EUR5.7bn.
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Revenues fell due to lower sales from “quota sugar” after changes to the EU sugar market, Suedzucker said.
The group said measures including plant closures and cost cuts had pushed up profits from its sugar business.
The company’s operating profit from sugar stood at EUR217m – up from EUR137m a year earlier. Sugar sales fell 5% to EUR3.15bn.
Elsewhere, Suedzucker said its special products and fruit segments divisions were able to boost profits “substantially”. Earnings from its CropEnergies segment were lower than last year because of higher costs in connection with the startup of the new factory in Belgium.
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By GlobalDataClick here for the company’s full earnings statement.
