Suedzucker, Europe's largest sugar company, beat analysts' expectations in the first quarter and increased its full year sales forecast, lifting its shares more than 2 percent on Thursday. Suedzucker said on Thursday it now sees sales for the fiscal year 2006/07 rising 5 percent to 5.6 billion euros ($7.1 billion).
It had previously forecast sales of 5.4 billion euros. In the first quarter, Suedzucker benefited from strong sales in Eastern Europe, especially in Hungary and the Czech Republic, and nearly doubled operating earnings.
Suedzucker reported operating profit of 127.6 million euros ($162.6 million) compared with 126 million a year, beating the average estimate of 125 million euros in a Reuters poll of analysts.
Sales rose to 1.469 billion euros from 1.252 billion, also beating the poll average of 1.328 billion.
Suedzucker shares were up 2.3 percent to 17.40 euros, one of the top gainers on a 1 percent-weaker German mid-cap index.
Suedzucker's Austrian unit Agrana expanded its fruit preparation business to increase revenues in areas other than sugar making after the European Union imposed new guidelines for sugar exports and subsidies.