Südzucker reports 53% profit drop as EU sugar prices weigh on earnings, sales
Südzucker reports steep profit decline amid falling EU sugar prices, with multiple segments under pressure, while confirming cautious outlook and warning of further impairment risks in challenging market conditions.
EUROPE – Südzucker, Europe’s largest sugar producer, has reported a sharp decline in financial performance for the fiscal year ending February 2026, with preliminary operating profit falling 53.4% to €163 million (US$190.5M) as lower European Union sugar prices impacted its core business.
The company also recorded a drop in earnings before interest, taxes, depreciation, and amortisation (EBITDA), which fell to €535 million (US$625.29M) from €723 million (US$845.02M) in the previous year. Group sales declined 13.4% to €8.4 billion (US$9.82B), reflecting weaker performance across several segments.
Südzucker highlighted extraordinary impairment losses of €470 million (US$549.38M) announced in February 2026, warning that total charges could rise to as much as €550 million (US$642.88M). The company has also proposed suspending its dividend for the 2025–26 financial year.
Despite current challenges, the company confirmed its outlook for the 2026/27 financial year, expecting group revenues to remain slightly below 2025/26 levels. EBITDA is projected to range between €480 million and €680 million, with the midpoint anticipated to be moderately above the previous year.
“When considering this forecast for the 2026/27 fiscal year, it is important to note that the economic and financial impact of the ongoing tense geopolitical and global economic situation on Südzucker Group’s future business performance is difficult to assess,” the company said in a statement.
In the first three quarters of fiscal 2025/26, group revenues declined significantly to €6,355 million (US$7.43B), compared to €7,466 million (US$8.73B) in the prior year. Most business segments reported lower revenues during the period.
The sugar segment experienced the steepest decline, with revenues falling to €2,151 million (US$2.51B) from €3,104 million (US$3.63B). The drop was attributed primarily to a significant reduction in sugar prices, alongside lower sales volumes, particularly in export markets.
Revenue in the special products segment decreased to €1,640 million from €1,704 million, partly due to the sale of Richelieu’s dressing and sauce business in the United States in the previous fiscal year, as well as declines in both volumes and prices.
The CropEnergies segment reported revenues of €609 million, down from €711 million, driven by lower sales volumes linked to maintenance activities and capacity adjustments. Meanwhile, the starch segment recorded a slight decline to €704 million due to reduced volumes.
In contrast, the fruit segment posted growth, with revenues rising to €1,251 million from €1,223 million, supported by higher pricing despite lower sales volumes.
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