HAMBURG, July 11 Reuters Europe39;s largest sugar producer Suedzucker on Thursday posted a 45 fall in quarterly earnings as it was hit by higher costs and lower sugar prices.

Suedzucker reported operating profit in the first quarter to May 31 of its 202425 fiscal year of 155 million euros 167.93 million, down from 282 million euros in the same quarter last year.

The sugar, CropEnergies biofuel and starch segments all recorded a decline in earnings, it said.

Suedzucker warned in May that high costs ranging from energy, raw materials, logistics to packaging combined with weak sugar markets would cause a fall in first quarter earnings. The company warned on Wednesday that its second quarter earnings would also decline.

Sugar futures hit 18month lows in May on expectations of large sugar harvests in Brazil but have since recovered slightly.

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Reporting by Michael Hogan, editing by Rachel More

Source Reuters