Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SUEDZUCKER AG. We currently have 7 research reports from 1 professional analysts.
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H1: going according to plan
13 Oct 16
Suedzucker’s Q2 and H1 update: in H1 sales were down 3.8% (Q2: -6%). The operating margin improved by 250bp (to 6.5%, Q2: 6.2%). All divisions improved their margins vs. last year (Sugar +370bp, Special products +140bp, CropEnergies +190bp, Fruits +80bp). Sugar profitability in Q2 was positive (2.6%) which is a confirmation of the trend seen in Q1. Net profit for the period was up to €155m (vs. €85.4m last year). As a reminder, the group expects FY sales to be c. €6.4-6.6bn and operating profit €340-390m.
Sugar profitability is back; very good start to the year
07 Jul 16
Suedzucker released its Q1 update. The revenues are flat (-1.2%) whereas operating profit grew to €110m (vs. €76m consensus and vs. €57m last year). The operating margin for the period stood at 6.8% (vs. 3.5% last year). By division, Sugar reported -2.5% in sales, whereas the operating profit returned to positive territory of €22m. Special products posted +2.7% in sales and a +180bp progression in the operating margin to 10.1%. CropEnergies’ sales decreased significantly (-17.7%, impact of a shutdown of bioethanol factory in Wilton), however in terms of profitability, the segment delivered a very good 12.8% operating margin. Fruit’s sales rose +5% whereas profitability improved by +180bp. The company maintains its FY guidance: revenues of €6.4-6.6bn and a €250-350m operating profit.
FY looks ok; sees improvement in sugar profitability in FY16/17
20 May 16
Suedzucker released its FY results. The group’s revenues stood at €6.4bn (in line with consensus), whereas operating profit stood at €241m (vs. consensus €229m, a 5% beat). The group’s operating margin improved by 110bp. Net income increased to €181m (vs. €74m). The proposed dividend is €0.30 per share (vs. €0.25 last year). By division, Sugar recorded a slump in sales of 11.5% and a negative operating profit of €79m (weaker than we had expected, but in the range of the guidance given). Special products sales were up +3.9% with a 250bp improvement in the operating margin. CropEnergies sales were down 13.9%, however the operating profit improved significantly (€87m vs. a loss of €11m last year). Fruit recorded +2% in sales and a 40bp contraction in the operating margin. For the FY16/17, the company expects: - revenues of €6.4-6.6bn - operating profit of €250-350m, driven mainly by an improvement in the sugar division’s results - Sugar division: should see stable revenues but improved profitability (positive operating result expected) - Special products: slightly higher revenue and significantly lower operating result (charges linked to the opening of the new starch plant) - CropEnergies: revenues in the €550-620m range, operating profit of €30-70m - Fruit: sales should improve substantially, operating profit should be above €62m.
Still postive about the stock
29 Feb 16
The last few weeks have been a roller-coaster for the sugar market. Firstly, sugar prices plummeted on Brazil's downgrade (Brazil is the biggest sugar exporter), only to surge by the most in the last 22 years just a couple of days later after the International Sugar Organisation increased its forecast for a production deficit in the current crop year amid rising concern about the impact of the El Nino weather pattern on supplies (heavy rains in Brazil and droughts in Thailand and India). These events also have an impact on Suedzucker's share price which, in the absence of news from the company, reflects the news on the international sugar market.
Good Q3 driven by Special products and CropEnergies; FY16/17 outlook disappoints
13 Jan 16
Suedzucker released its Q3 update. Revenue stood at €1.62bn (consensus at €1.66bn) whereas the operating profit was €64m (consensus was €55m) vs €27m last year. By division, Sugar recorded a negative quarter, as expected, with operating profit at -€28m. The special products segment was stronger than expected with operating profit at €53m driven by the good performance of all divisions as well as the positive evolution of ethanol prices. CropEnergies recorded another good quarter supported by strong ethanol prices. The Fruits segment performance was in line with last year (operating profit at €15m), although the revenue was slightly lower than last year due to lower sales of fruit juice concentrates. The company’s EPS increased to €0.23 thanks to the stronger operating profit but also thanks to a one-off gain linked to the acquisition of a 92% stake in Iansa SA, the Chilean market’s leading sugar producer, by ED&F. Suedzucker expects FY15/16 revenues to reach €6.3-6.5bn whereas the operating profit should be in €200-240m range (the upgraded guidance from November was reiterated).
Q2 shows improved profitability
08 Oct 15
Suedzucker reported its Q2 results. Revenue was flat yoy. Sales by division: Sugar -3%, Special products 4.75%, CropEnergies -2.8%, and Fruits 1.5%. The operating profit was up by 51% to €77m, driven by stronger performance in Special products and CropEnergies linked to higher bioethanol prices. For Sugar, the operating profit was at a zero level (negative in Q1). The operating margin was up by 150bp due to a better performance from both CropEnergies (€26m vs. -9m in Q2 14) and Special products (€37m vs. €20m in Q2 14). Fruits recorded a weaker Q2 in terms of profitability (margin down by 90bp). From a H1 perspective, total revenues were down 4.3% due to lower sugar quota revenues (-10% in H1). The operating margin was flat yoy. The company guides for FY revenues of €6.2-6.4bn (vs. €6.8bn in FY14/15) and operating profit of €180-230m (vs. €181m in FY14/15).
Increasing price target from 815p to 835p
08 Dec 16
Following our 2 November 2016 note “The valuation genie is out of the bottle”, a great deal of new information has been disclosed about MPE (particularly on the non-core assets), while the company has re-based the dividend, announced a special dividend and announced the sale of major associate PT Agro Muko for US$100m. We now take all this new information into account and update our forecasts accordingly. As a result, we are increasing our price target from 815p/share to 835p/share.
New packing facility; Highly significant for underpinning future growth
06 Dec 16
HFG has announced plans to expand its packing capability in Australia, by constructing (at an expected investment cost of A$115m financed through bank facilities) a new meat processing facility in Queensland, in order to supply Woolworths, the leading grocery retailer in Australia. This is a highly significant development as the new Queensland plant, alongside HFG’s two existing dedicated retail packed meat facilities in Melbourne and Bunbury (both operated as a joint venture with Woolworths) should mean that HFG supplies the bulk of Woolworth’s c.1,000 stores with their red meat needs over time. In short, this development should underpin growth at HFG for many years to come from 2020 onwards, which, in turn, should result in a higher and more stable earnings stream over time, supporting a continued rerating of HFG’s valuation multiple, in our view. We reiterate our BUY.
06 Dec 16
600 Group* (SIXH): Interim results: order book showing signs of improvement (CORP) | Real Good Food* (RGD): Commodity volatility impacts numbers (CORP) | Minds + Machines* (MMX): .vip goes live in China (CORP | Imaginatik* (IMTK): Interims (CORP) | iomart* (IOM): Quality business as usual (CORP) | Fulcrum (FCRM): Upgrades continue (BUY)
Using their loaf
30 Nov 16
Finsbury Foods has been transformed by a series of acquisitions that has contributed to revenue and earnings nearly doubling over the last three years. Record levels of capital investment continue to improve the Group’s competitive position, whilst exposure to growth segments of the food market is helping likefor-likes. Profit growth is expected to slow in the current year in the absence of acquisitions but underlying trading remains resilient despite some cost headwinds, whilst debt reduction is accelerating. The rating is undemanding and the recent share price weakness has created a buying opportunity.
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.