The company said that it expects an annual revenue of €5.6 billion, with a similar improvement in operating profit.
Such confidence has led to the adoption of the proposal put forward by the group's supervisory board and executive board to distribute a dividend of &euro0.55 per share.
"Judged from today's vantage point there will be a positive swing in restructuring costs and special items from a high negative amount last year, so income from operations will increase significantly," said the company in a statement.
Lat month's first quarter interim report also revealed a bullishness about new opportunities within the sector.
"The European Council of Agricultural Ministers adopted the new single market regulation for sugar on 20 February 2006," said the company.
"Despite the severe price reductions the new market regulation gives us a long-term perspective."All in all, we anticipate a higher production volume for the Suedzucker Group than at present. With industrial sugar production, the volatile C sugar business will be replaced by stable EU business."
The firm predicts therefore that the sugar segment will already show a slightly better operating profit in the current financial year, despite new European sugar market regulations that came into force on 1 July 2006.
However, the group's special products segment is believed to be still burdened by a number of factors. As a result, after adjustment for fruit activities, it will not yet quite match last years result. On the other hand, Suedzucker expects that the fruit business, which is reported as a separate segment as from the 2006/07 financial year, will see a significant improvement in operating profit on the back of revenue growth.
In the medium term the Suedzucker Group expects sustained growth in operating profit driven by all three segments. Market adjustments in the sugar sector will strengthen the group's market position, while in the special products segment, heavy investment in bioethanol and functional food will feed through in higher earnings.
The fruit segment will also continue to grow, with rising margins predicted.
Suedzucker operates 42 refineries extending from France through to Poland, the Czech Republic and Moldavia.