Südzucker predicts sugar price recovery
The German producer reported a €24 million operating EBITDA loss in its sugar segment, while group operating EBITDA rose to €303 million in the first half.
GERMANY – Südzucker, Europe’s largest sugar producer, expects sugar prices to recover from recent four-year lows as drought and reduced rainfall threaten sugar beet harvests and tighter supplies support the European market.
Chief executive Niels Pörksen said lower harvests and the diversion of some production towards ethanol instead of crystal sugar would restrict sugar availability and potentially push prices higher.
“The world market is not flooded with sugar. The European market is undersupplied with sugar. So I can’t see anything else than a further increase of sugar prices,” Pörksen told Reuters after the company published its first-half results.
Pörksen estimated that this year’s sugar beet harvest across the European market would be approximately one million metric tonnes below the previous year’s level. Eurostat data showed that the European Union harvested 121.6 million tonnes of sugar beet in 2024.
The outlook follows a decline in European sugar prices. European Commission data showed that the average EU white sugar price fell to €499 (US$559.61) per tonne in July, its lowest level since August 2022.
Südzucker’s latest results reflected continued pressure on its sugar business. The company reported broadly stable first-half sales of €4.19 billion (US$4.7B), while strong demand for biofuels partly offset lower revenue from sugar and starch products.
Revenue in the sugar segment declined to €1.269 billion (US$1.42B) from €1.389 billion (US$1.56B) as prices and sales volumes weakened. The segment recorded negative operating earnings before interest, taxes, depreciation and amortisation (EBITDA) of €24 million (US$, although lower manufacturing costs helped narrow the loss.
Across the group, operating EBITDA increased to €303 million from €189 million in the corresponding period a year earlier.
The company had revised its full-year outlook on 28 September, projecting revenue of €8.3 billion (US$9.31B) to €8.7 billion (US$9.76B) and operating EBITDA of €540 million (US$605.63M) to €680 million (US$762.64M).
Südzucker expects reduced beet availability and increased use of sugar production for ethanol to support the European sugar market.
The company’s outlook comes as producers contend with weather-related crop pressures and changing demand across food, sugar and biofuel markets.
The expected harvest decline could further constrain supplies, while the company’s results highlight the contrasting performance of its sugar and biofuel-related businesses.
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