Davy Research

Südzucker

Q1 results highlight weak sugar and bioethanol pricing environment
Foods
Südzucker

DAVY VIEW

As expected, Sudzucker (SZU) has delivered a weak Q1 performance, reflective of the headwinds facing the European sugar market. While Sugar and CropEnergies suffered from pricing pressures, Special Products and Fruit proved more stable, offering some counter-narrative to the negative Sugar backdrop. With SZU guiding for material Sugar losses in FY 2019, the valuation barometer has shifted to gauging the magnitude and timing of European sugar market recovery – a period which SZU believes will take “at least two years”. With the equity soft into results, the reiteration of guidance should offer near-term support.

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  • RATINGS AND PRICE CORRECT AT TIME OF ISSUE


  • Südzucker

    Closing Price: 1258c

  • RATING 10/10/17

  • PREVIOUS RATING 03/06/15

    Outperform

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