Südzucker AG: Sharp Decline in Q1 2025/26 Earnings – Sugar Segment Under Severe Pressure

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.

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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%)

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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

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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

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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

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🏭 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