Südzucker, the Germany-based sugar and convenience-foods group, has cited geopolitical factors as it issued a profit warning.

The company expects a “significant decline” in its third-quarter earnings.

After a “modest start” to the quarter, which started in September, Südzucker said it sees, as in the two prior quarters, a drop in EBITDA and operating result.

In the third quarter of the company’s 2023/24 financial year, it booked EBITDA of €385m ($419.8m) and an operating result of €268m.

In a stock-exchange filing, Südzucker said the war in Ukraine was continuing to “exacerbate the already high volatility on the sales and procurement markets”.

In July, the EU reintroduced tariffs on sugar from Ukraine. However, Südzucker said the “impact of the negative influences” stemming from the EU’s period of duty-free access for agricultural imports from Ukraine “which is now limited in terms of volume, remains uncertain”.

It added: “The implications of the war that broke out in the Middle East last October are likewise difficult to assess.”

Südzucker plans to publish its third-quarter figures on 14 January.

It said: “In fact, it is proving quite difficult overall to assess the economic and financial ramifications along with the potential duration of these temporary crises.”

Nevertheless, the company has reaffirmed its forecast that group revenues are expected to be in a range of €9.5-9.9bn, EBITDA between €550m and €650m and a group operating result of €175m to €275m.