Südzucker forecasts lower earnings as EU sugar market faces continued weakness
Europe’s top sugar producer expects earnings to decline amid low prices but anticipates recovery from October 2025.
EU – Südzucker, Europe’s largest sugar producer, has confirmed a projected decline in earnings for the current financial year due to sustained weakness in the European Union sugar market.
The company reiterated its full-year group operating profit forecast of between €150 million and €300 million (US$168 million–US$336 million), a significant drop from €350 million posted in the year ending February 2025.
In a statement, Südzucker said the sharp fall in sugar prices during the 2024/25 fiscal year would continue to affect the EU market until at least autumn 2025.
The company, however, expects the 2025/26 sugar marketing year, beginning in October 2025, to mark a turning point driven by reduced EU sugar production.
The ongoing market pressure stems partly from the European Union’s decision to allow duty-free imports of Ukrainian sugar.
The policy, intended to support Ukraine following Russia’s invasion, has flooded the market with cheaper alternatives, contributing to a significant price drop and sparking complaints from EU sugar producers.
Reuters reported in March that the EU was considering scaling back Ukrainian sugar imports following protests from local industry players.
Despite the uncertainty, Südzucker CEO Niels Poerksen told Reuters that the company had no plans to shut down any production capacity.
He noted signs of declining Ukrainian sugar sales in the EU, suggesting Ukraine may be diversifying its export destinations.
Poerksen expressed cautious optimism, citing these trends and a likely smaller EU sugar harvest as potential catalysts for a price rebound later in the year.
Despite these hopeful signs, Südzucker expects an operating loss of between €100 million (US$112.7M) and €200 million (US$225.3M) in its sugar segment for the current financial year.
The company continues to monitor market developments while preparing for a gradual recovery in the months ahead.
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