Südzucker assumes that ED&F Man will close the 2019/20 financial year, which ended at the end of September 2020, with a net loss for the year, in particular due to the delay in implementing the strategic realignment. At the same time in September 2020, ED&F Man secured a three-year extension to its existing financing, thereby gaining necessary time for the strategic realignment.
Against this background Südzucker expects significantly negative implications for the group’s at-equity result in business year 2020/21, which is not part of the operating result. The ED&F Man restructuring burden will accrue especially in Südzucker’s third quarter.
Also in this context, the Südzucker AG executive board came to the conclusion in today’s meeting – based on the preliminary figures of ED&F Man business year 2019/20 – to significantly impair the ED&F Man participation within Südzucker’s nine month report of business year 2020/21. Südzucker expects a significant burden to Südzucker Group net earnings in the range of EUR 140 to 180 million (participation value 29.02.2020: EUR 224 million) and to Südzucker AG net earnings in the range of EUR 200 to 240 million (participation value 29.02.2020: EUR 285 million). The burden will be non-cash.
As well as for ED&F Man the coronavirus pandemic is still a huge challenge to Südzucker Group. In light of new extensive global – and now also European – measures to contain the significantly increased number of infections (e.g. mobility restrictions, curfews etc.), which are currently unpredictable in extent, duration and economic effects, additional opportunities and risks may arise for the Südzucker Group in the course of business year 2020/21. Here we refer to respective statements in financial reports since the beginning of business year 2020/21.
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