Suedzucker records sharp drop in quarterly profit amid weak EU sugar prices, lower export volumes 

GERMANY – Suedzucker, Europe’s largest sugar producer, has reported a steep 85% decline in its quarterly operating profit, attributed primarily to falling European Union (EU) sugar prices and reduced export volumes. 

In its financial report for the first quarter of fiscal year 2025/26, which ended in May, the company posted an operating profit of €22 million (US$25.82 million), down from €155 million (US$181.8M) in the same quarter of the previous year. 

The sugar segment was the hardest hit, with revenues dropping significantly to €704 million from €1.076 billion (US$1.26B) a year earlier. The segment also recorded an operating loss of €56 million (US$65.7M), reflecting the sharp drop in EU sugar prices and reduced export activity. 

“The significant decline in results was mainly caused by the downturn in sugar prices,” the company stated, although it noted that lower production costs could potentially help offset the impact of price reductions moving forward. 

EU sugar prices fell to €540 per metric ton in May 2025, down from €619 in October 2024. The decline has been partly attributed to increased imports of low-cost sugar from Ukraine, a temporary trade support measure following Russia’s invasion.  

While the EU has proposed to reduce these imports by around 80%, no final decision has been made. 

A Suedzucker spokesperson noted, “We expect higher EU sugar prices from the start of the new sugar season in October 2025 due to a significant reduction in EU sugar production, following a decline in beet cultivation area.”  

The company, however, cautioned that ongoing negotiations regarding Ukrainian sugar import quotas could still pose a risk. 

During the quarter, the special products segment reported a moderate revenue decline to €554 million (US$649.8M), down from €579 million (US$679.2M) in the previous year. The decrease is linked to the divestment of Freiberger’s dressing and sauce business in the United States during the second quarter of fiscal year 2024/25. 

The fruit segment, by contrast, recorded a modest increase in revenues to €444 million (US$520.8M), up from €415 million (US$486.8M), driven by higher prices for fruit juice concentrates and fruit preparations. 

Suedzucker anticipates its sugar segment will report a full-year operating loss of between €100 million (US$117.3M) and €200 million (US$234.6M), compared to a €13 million (US$15.2M) loss in the prior year. However, the company expects to return to profitability in the second half of the fiscal year. 

Despite the challenges, the company has maintained its forecast for full-year group operating profit between €150 million (US$175.9M) and €300 million (US$351.9M), down from €350 million (US$410.6M) in the previous year

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