MANNHEIM (dpa-AFX) - Good business, especially with sugar and products such as frozen pizza, helped Südzucker Group to jump in sales. In the third fiscal quarter (to the end of November), revenues climbed by more than a fifth to just under 2.5 billion euros, the SDax company announced in Mannheim on Thursday. Profits were even better.

Südzucker shares were unable to hold on to early gains on Thursday and fell by almost one percent to 16.40 euros in the morning. It thus extended its previous day's losses. On Wednesday, cautious comments by biofuel subsidiary Cropenergies on business development had weighed on the share price.

At the group level, Südzucker's operating profit rose by around 74 percent to 220 million euros in the third financial quarter. More than half of the operating profit was attributable to the flourishing sugar business, which more than compensated for the declines in the fruit and starch divisions. The latter suffered from increased expenses, for example for raw materials or energy. Südzucker also had to shoulder higher packaging costs for frozen pizza and pasta.

Only in part or with a time lag could these be passed on in the form of price increases, it was said. On balance, Südzucker earned 170 million euros, compared with 42 million euros in the year-earlier quarter. Goldman Sachs analyst John Ennis rated the results as better than expected.

The biofuel subsidiary Cropenergies had already published its figures the previous day, warning of increasing pressure on earnings. The reason for this, in addition to high energy and raw material costs, is the recent decline in ethanol prices. The first effects were already evident in the third quarter. Although Cropenergies' earnings were higher than in the same period of the previous year, they were down on the previous quarters. However, compared with the previous quarters, sales were down because ethanol prices in Europe are falling. This is because more and more ethanol is being imported from countries with lower raw material and energy costs. In addition to biofuel, Cropenergies also produces food and animal feed.

Südzucker Group confirmed its forecast, which was adjusted at the beginning of November. The plan calls for group revenues of EUR 9.7 to 10.1 billion, of which EUR 530 to 630 million should remain as operating profit. In the previous financial year, Südzucker generated revenues of EUR 7.6 billion and operating profit of EUR 332 million.

Südzucker should benefit from its sugar segment, the company added. The global market environment remains positive and sugar production is expected to fall in Europe. With declining production and sales volumes, the executive board anticipates a significant increase in revenues, because higher prices can be demanded as a result. Accordingly, operating profit should also improve strongly./ngu/mis/tih