Suedzucker preliminary annual operating profit slumps 53.4% on weak sugar market (updated)

Suedzucker AG

27/04/2026 16:34

Recasts with details, forecast, company comment

April 27 (Reuters) - Europe’s largest sugar producer Suedzucker SZUG.DE reported a 53.4% fall in preliminary annual operating profit on Monday as low sugar prices in the European Union hurt results.

The German company reported preliminary operating profit for its 2025/26 fiscal year to end February of 163 million euros ($191 million), down from 350 million euros in the previous year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) fell to 535 million euros from 723 million while sales decreased 13.4% to 8.4 billion euros.

The company had flagged in February impairment losses of up to 550 million euros and proposed suspending its 2025/26 dividend.

“The decline in earnings is primarily attributable to the challenging market environment in the sugar segment,” Suedzucker said.

Low sugar prices have also hit other European producers. Associated British Foods'  sugar unit posted a first-half operating loss on April 21 and French sugar and ethanol maker Cristal Union reported a 14% fall in annual revenue two weeks ago and warned that higher energy costs and low-duty imports were putting further strain on producers.

Suedzucker confirmed its forecast of EBITDA in the 2026/27 fiscal year of between 480 and 680 million euros.

"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 Suedzucker Group's future business performance is difficult to assess," it said.

The full report for 2025/26 and a detailed prognosis for 2026/27 will be published on May 21, the company said.

        ($1 = 0.8519 euros)

(Reporting by Emanuele Berro in Gdansk and Michael Hogan in Hamburg; Editing by Linda Pasquini and Emelia Sithole-Matarise)

((Emanuele.Berro@thomsonreuters.com; +48 587696510))