Germany’s Nordzucker posts losses on depressed EU sugar market

Suedzucker AG

28/05/2026 10:30

    HAMBURG, May 28  (Reuters) - Germany's second-largest sugar refiner Nordzucker on Thursday posted an annual operating loss and said it expected weak European Union sugar markets would also lead to losses in its new fiscal year.
Unlisted Nordzucker posted a €226 million ($262.50 million) operating loss for its 2025/26 financial year to end-February, down from a €100 million operating profit in the previous year.
Group sales fell about 15.5% to €2.34 billion largely because of low sugar prices.
“The sugar sector is currently facing an extremely difficult market situation. Two very strong harvests in Europe caused a clear oversupply, putting massive pressure on prices,” CEO Lars Gorissen said at the annual results presentation.
Large stocks in the EU sugar market were driven by strong beet harvests and structurally declining sugar consumption, Nordzucker said in a statement on its financial results. Falling global sugar prices due to high global production have intensified the pressure. 
Nordzucker said it expected continued operating losses in the “mid double-digit million euro range” for its new 2026/27 fiscal year followed by a return to a positive Earnings Before Interest and Tax in 2027/28.
“Measures already introduced, including efficiency programmes and cost reductions, are beginning to have an effect but could not fully offset the market downturn,” it said.
To rebalance the market, Nordzucker has reduced cultivation areas and expects a better balance between supply and demand to lead to a recovery in prices.
Germany’s Suedzucker SZUG.DE, Europe's largest sugar maker, said on May 21 it expected the depressed sugar market to continue in its new fiscal year. Sugar futures hit five-year lows in April on large global supplies. 
EU data shows average EU white sugar prices fell to €510 a metric ton in March 2026 from €550 in March 2025 and €844 in March 2024.

 (Reporting by Michael Hogan. Editing by Barbara Lewis)
 ((michael.j.hogan@thomsonreuters.com; +49 172 671 36 54; Reuters Messaging: michael.hogan.thomsonreuters.com@reuters.net/))