UK sugar production now expected to be just 740,000 tonnes in 2022/23
Associated British Foods
Tuesday, January 24, 2023
In a trading update for the 16 weeks to 7 January 2023, Associated British Foods, reported the company expects the operating result at AB Sugar to be broadly in line with last year as a result of a much-reduced UK sugar crop, and for trading at Ingredients to be better. UK sugar production from the 2022/2023 campaign is now expected to be some 0.74 million tonnes, lower than our previous forecast of 0.9 million tonnes and compares to 1.03 million tonnes from our last campaign. This reflects lower beet sugar yields following adverse weather conditions, especially recently. Profitability at British Sugar will be lower than expected as a result. Sugar production at Illovo is expected to be higher than forecast and will be above last year’s 1.45 million tonnes. Vivergo, our bioethanol plant in Hull, has been operating well but made a loss in the period due to volatility in its energy and other input costs and bioethanol prices. An increase in AB Sugar revenues of 31% (+27% at constant currency) reflect higher sugar and co-product prices in Europe and Africa. Input cost inflation is becoming less volatile and recently some commodity costs have declined. However, all our businesses continue to work hard to restore margins which have been and remain under pressure. Click here to connect to the source of this storyClick here for more News and Views
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