France’s second-largest sugar maker Cristal Union should further benefit from high sugar prices and an expected rebound in output in 2021/22 after recording a net profit in the last financial year, its chief executive told Reuters on Wednesday.
The cooperative group made a 69 million euros ($84.5 million) profit in the year to Jan. 31 after two years of losses, also supported by a restructuring of activities and high sales of alcoholic disinfectant gel to combat the spread of COVID-19, CEO Alain Commissaire said.
The final result was higher than the 40 million euros Commissaire had projected in January and compared to a loss of 89 million euros for 2019/20.
Cristal Union is due to release its full annual results in early June.
The positive results came despite a slump in output last year after weather and a disease causing beet yellowing transmitted by aphids ravaged crops in France, the EU's largest sugar producing country.
Concern of a yet another poor harvest in 2021 rose after a cold snap severely damaged plantings but resowings with seeds granted for free by the cooperative allowed to compensate for the losses, Commissaire said.
Commissaire said he was optimistic that results would remain strong in the current 2021/22 season with the sugar beet harvest now on good trackand sugar prices expected to remain at high levels on average.
"The outlook is very good," he said. "The key element that will drive results for this season is the final output. If there is no drought the crop should be good."
Cristal Union's price negotiations so far this season have been 10% to 20% higher than last year, Commissaire said.
The cooperative expects to give its members “27 euros or more” on average per tonne of sugar beet in 2021, up from 25.5 euros last year, Commissaire also said.
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EXCLUSIVE French sugar maker Cristal Union to post profits, sees them last - Reuters
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