Südzucker

Q3 results: modest upside to FY17/18; approaching the first year of EU sugar market liberalisation

  • Sectors : Foods
  • Companies : Südzucker

Ratings and price correct at time of issue.

  • Südzucker

    Closing Price: 1687c

  • RATING 10/10/17

  • PREVIOUS RATING 03/06/15

    OUTPERFORM

DAVY VIEW

In a challenging environment, Sudzucker (SZU) has delivered a respectable Q3 performance, with group operating profit (down 13% yoy) ahead of company-compiled consensus. Significant headwinds remain, however, as EU sugar prices continue to align with world benchmarks and the market digests record yields. We see modest upside to FY17/18 operating profit forecasts, driven by the acquisition of Richelieu, with downside risk to EPS driven by the challenges at EDF & Man. The focus of investors remains on FY18/19, the first full year post EU sugar market liberalisation

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Jan 11 2018, 11:20 GMT

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