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Oct 10 2019, 10:05 IST/BST
The Sugar segment continues to be negatively impacted by legacy (uneconomic) customer contracts. While the recovery in the EU market is welcomed, the challenging beet environment will weigh on the margin grid. To incentivise farmers, significant bonuses are being paid, while the beet pricing mechanism appears to be shifting from the previously agreed profit and risk share formula to a minimum price arrangement. The Sugar restructuring will help offset these cost headwinds; however, the benefits will not accrue until October 2020. We will lower our operating forecasts towards the upper end of guidance.
Oct 10 2019, 10:05 IST/BST