Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SUEDZUCKER AG. We currently have 8 research reports from 1 professional analysts.
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Q3: another very good quarter; lifts profit guidance
12 Jan 17
Q3 update: revenues were up 5.1% (in line with consensus), whereas the operating margin was up +290bp yoy and +70bp qoq (100bp better than consensus). The Q3 results were driven by the Sugar segment which improved profitability by 210bp qoq. The company also saw an improvement in profitability in Special products +40bp qoq and Fruits +30bp qoq. CropEnergies’ operating margin was impacted by the costs associated with the restart of a factory in the UK. On the back of the lifted overall profitability of the group, the company upgraded its guidance: FY sales of c. €6.4-6.6bn (no change) and operating profit of €380-410m (vs. 340-390m). Sugar is expected to contribute €90-120m, Special products c. €160m (slightly higher than our expectations), CropEnergies (€70-85m) and an increase in the Fruit segment.
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).
13 Feb 17
Middlesbrough-based pawnbroker Ramsdens Holdings is set to join AIM on 15 February. Its growth is not coming from its core business but from providing foreign currency, pre-paid travel cards and international payments. The strategy is to increase the group’s online activities and grow the number of branches. In the year to March 2016, group revenues improved from £29.2m to £30m. The accounts of the main subsidiary show that foreign-currency margin rose from £5.36m to £7.59m. This contributes 35% of group gross profit. By contrast, the core business of pawnbroking, precious metal purchases and retail sales fell from £21.3m to £19.8m. Revenues from other financial services were flat at £2.6m. Ramsdens has 127 sites and last year it made an operating profit of £3.19m. In the six months to September 2016, revenues increased from £16.2m to £18.4m and operating profit improved from £2.81m to £3.48m. The placing will raise £15.6m at 86p a share, valuing the company at £26.5m. NorthEdge Capital, which backed a buyout in September 2014, will receive just over £10m from share sales. The NorthEdge stake will fall from 75.6% to 30.7%. The other £5m will go to the company and be used to repay the remaining loan notes and the costs of the flotation. By the end of March 2016, there were still £4m of loan notes outstanding to NorthEdge, with £4.86m paid off during the previous year.
Salient play in a healthy industry
16 Feb 17
PepsiCo’s (PEP US, N/R) full year figures reconfirmed growth expectations for the US FMCG giant in 2017. PepsiCo – which generates one third of its revenue from North American beverages – looks for 3% organic sales growth in 2017. Our own view about UK soft drinks remains positive. Flexibility around sugar, ongoing innovation, potential price support from a sugar tax and further M&A are all consistent with the industry maintaining sales growth and delivering positive share price performances.
The Quest for Dividends
01 Feb 17
The Dow Jones Index has just breached the 20,000 mark, the first time in its 131- year history that it has done so, whilst the FTSE-100 Index has also been at record levels in recent weeks. The election of the controversial Donald Trump as the new US President, and more specifically the impact of his planned expansionist economic policies, have boosted stock markets, both in the US and in the UK.
New CEO resets targets: cost savings ahead, mid single-digit top-line target by 2020
16 Feb 17
Nestle’s FY and Q4 update: In Q4, sales grew organically +2.9% (weaker than 3.5% expected). In Q4, Zone Americas, EMENA and Others slowed down compared to the previous quarter. Zone AOA (+4.4%), Waters (+5.4%) and Nestle Nutrition performed better than in Q3. On a FY basis, organic sales are up +3.2% (cons. 3.4%) with RIG +2.4% and pricing of 0.8%. On reported figures, sales are up +0.8 (FX: -1.6%). The trading operating margin is up 30bp on constant FX and +20bp on reported figures (in line with consensus). FY17 outlook: top-line growth of 2-4%, stable operating margin as a result of a considerable increase in restructuring costs to drive future profitability. EPS is expected to rise at constant FX and capital efficiency is also expected to rise. For the mid-term, Nestlé targets mid single-digit top-line growth and 200bp in structural cost savings by 2020. The proposed dividend is CHF2.30 (vs. CHF2.25 last year).
Foundations laid; building starts
15 Feb 17
Last week RM posted a reassuring set of prelims (adj. PBT 4% ahead) that showed continued progress within RM Education (+6% EBIT gr’th) and RM Results (+22% EBIT gr’th) – achievements that shouldn’t be overshadowed by the challenging (but temporary) external market, which is weighing on RM Resources (-9% EBIT). Indeed, combined with Connect Education & Care, we are bullish on the division’s long-term prospects, and as such we raise our target price to 207p and retain our Buy recommendation.