German sugar refiner Nordzucker looks to South America as EU prices hit results (updated)

Suedzucker AG

28/05/2025 12:37

Adds comments from CEO, possible acquisition in South America

HAMBURG, May 28 (Reuters) - Germany's second largest sugar refiner Nordzucker forecast a loss in its new financial year on Wednesday as low EU sugar prices dent its earnings, and said it would diversify in South America to reduce dependency on the European market.

On Wednesday Nordzucker reported a 76% fall in operating profits in its 2024/25 fiscal year to 100 million euros ($113.19 million).

“The main reason for the fall in sales and result was the strong fall in sugar prices in Europe,” Nordzucker said in a statement.

Nordzucker, which is unlisted, followed other leading EU sugar producers, including Germany’s largest producer Suedzucker SZUG.DE and France’s Tereos, in warning that low EU sugar prices would pressure earnings.

The bloc's decision to allow imports of cheap Ukrainian sugar, part of its support for Ukraine following Russia's invasion, prompted a fall in prices that has affected EU sugar producers.

Nordzucker said it expected operating losses in its new 2025/26 financial year to be in the low double-digit millions of euros. It said it was expecting a stabilisation of the EU sugar market as the area sown with sugar beet this year overall in the EU has been reduced, but substantially higher prices are not expected before October 2025.

CEO Lars Gorissen told Reuters the refiner aimed to diversify outside Europe - currently providing 86% of sales - and to expand the cane sugar business that it entered into in 2019 via the purchase of Australia's Mackay Sugar.

“We have been looking around in the past few years and have come to the conclusion that South America, especially Brazil, is the most competitive market and we want to set foot there,” he said, but added it was too early to give a timescale for a possible takeover.

Asked if takeover negotiations were underway, he said “we are active and are developing projects”.

 (Reporting by Michael Hogan, editing by Jane Merriman and Sophie Walker)

 ((michael.j.hogan@thomsonreuters.com; +49 172 671 36 54; Reuters Messaging: michael.hogan.thomsonreuters.com@reuters.net))