Nordzucker warns of operating loss as EU sugar prices fall to multi-year lows
Nordzucker expects a sharp earnings reversal as weak EU sugar prices continue to pressure producers across the region.
GERMANY – Germany’s second-largest sugar refiner, Nordzucker, has warned it will swing to an operating loss in the current financial year, citing sharply depressed EU sugar prices that are weighing heavily on producers across the market.
In a statement, the unlisted company said it now expects “an operating loss in the high double-digit million range for the current financial year, which is significantly worse than expected.” This marks a sharp reversal from the previous financial year, when Nordzucker reported an operating profit of €100 million ( US$116 million).
The warning comes as sugar prices in the European Union hover near four-year lows, while global sugar prices are close to five-year lows. Reuters has reported that European producers are asking farmers to reduce sugar beet plantings in response to the prolonged downturn.
The pressure is being felt across the sector. Earlier this week, Germany’s largest sugar producer Südzucker said low sugar prices would weigh on its earnings, while France’s Tereos reported a sharp drop in first-half profits in November.
Nordzucker attributed the challenging market conditions to a combination of high harvest yields in major producing regions, including Brazil, India and the EU, as well as uncertainties around import tariffs and exchange rate movements. The company also pointed to declining sugar consumption, which has reduced overall sales volumes.
Data show that average EU sugar prices fell to €532 (US$617) per metric ton in November 2025, down from €600 per metric ton (US$696), in November 2024. Although the EU restricted low-priced sugar imports from Ukraine following farmer protests, the measures have not been enough to reverse the broader price slump.
“The significantly lower price level combined with large quantities available has been shaping the market for months,” said Nordzucker Chief Operating Officer Alexander Godow. “Due to these developments, no substantial price recovery is to be expected for the time being.”
In response, the company said it is expanding its cost-cutting and efficiency programme. Nordzucker added that the 2025/2026 sugar beet processing campaign benefited from good harvest conditions.
Campaigns in Finland and Lithuania ended in December, while factories in Germany are set to conclude operations in the second half of January, followed by plants in Sweden, Slovakia, Denmark and Poland.
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