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

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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