Südzucker AG: Sharp Decline in Q1 2025/26 Earnings – Sugar Segment Under Severe Pressure
Mannheim, July 10, 2025 – Südzucker AG reported a significant drop in revenue and profits in the first quarter of its 2025/26 fiscal year (March 1 – May 31, 2025). Group revenues fell by 15.6% to €2.15 billion, while operating profit plunged by 85.8% to €22 million, primarily due to falling sugar prices.
Group Highlights – Q1 2025/26
Metric | Q1 2025/26 | Q1 2024/25 | Change |
---|---|---|---|
Revenue | €2.153 bn | €2.551 bn | –15.6% |
EBITDA | €96 mn | €230 mn | –58.3% |
Operating Profit | €22 mn | €155 mn | –85.8% |
Operating Margin | 1.0% | 6.1% | |
ROCE (Outlook) | Expected to decline significantly (FY 2024/25: 5.2%) |
Segment Performance Overview
Sugar
- Revenue: €704 million (–34%)
- Operating Result: –€56 million (vs. +€59 million in Q1 2024/25)
- Main reasons: Significant drop in sugar prices and reduced export volumes
- Cost savings from the 2024 campaign could not offset price erosion
Special Products
- Revenue: €554 million (–4%)
- Operating Result: €44 million (–23%)
- Decline mainly due to the divestment of the U.S. dressing & sauces business and higher costs
CropEnergies (Bioethanol)
- Revenue: €206 million (–11%)
- Operating Result: –€5 million (vs. +€6 million)
- Weighed down by maintenance shutdowns, lower ethanol and co-product prices, and technical issues
Starch
- Revenue: €245 million (–2%)
- Operating Result: €3 million (–50%)
- Lower sales prices and volumes, plus higher input costs;
partially offset by insurance compensation for flood damage in Austria (Pischelsdorf)
Fruit
- Revenue: €444 million (+7%)
- Operating Result: €36 million (+33%)
- Growth is driven by higher prices for both fruit juice concentrates and preparations
2025 Sugar Beet Campaign
- Beet acreage has been reduced significantly due to lower EU sugar demand
- Early sowing in mid-March, thanks to favourable weather
- High pest pressure (notably leafhoppers)is reported in SBR-affected regions
- Summer weather will be decisive for yield performance
Full-Year 2025/26 Outlook Confirmed
- Revenue: €8.7–9.2 bn (FY 2024/25: €9.7 bn)
- EBITDA: €525–675 mn (FY 2024/25: €724 mn)
- Operating profit: €150–300 mn (FY 2024/25: €350 mn)
- Capital employed: Expected to be in line with the prior year
🏭 About the Südzucker Group
Südzucker is a leading European food and ingredients group, operating across five segments:
- Sugar (the largest sugar producer in Europe, 21 factories, 2 refineries)
- Special Products (BENEO, Freiberger, PortionPack)
- Starch (AGRANA Group)
- CropEnergies (Europe’s largest renewable ethanol producer)
- Fruit (world market leader in fruit preparations for dairies)
The group generated €9.7 billion in revenues in FY 2024/25 with around 19,300 employees.
Source: Press release Südzucker