German sugar refiner and food ingredients firm Suedzucker saw its earnings fall in the first three months of its financial year, hit by increasing commodity costs.

Suedzucker said today (11 July) that operating profit could not reach the previous year’s “extraordinarily high” level, coming in at EUR230m (US$300.4m) in the three months to the end of May. This compared to EUR263m in the prior year.

The decline, the company said, was driven by commodity costs in the sugar and special products segments, which were higher than last year.

Consolidated group revenues, however, climbed 7.4% to EUR2.03bn.

Südzucker reiterated its full-year forecast that sales will climb “slightly” to about EUR8bn from EUR7.9bn last year and operating profit will decline “significantly” to about EUR825m versus EUR974m last year.

Click here to view the full earnings release.