The German Südzucker Group saw its profits plummet in the first quarter of its fiscal year 2025/26. Operating profit fell from €155 million last year to €22 million. This was due to falling sugar prices. The sugar business suffered a loss of €56 million, compared to a profit of €59 million last year.
"Even the significant reduction in production costs in the 2024 campaign is not enough to offset the significant price drop," the company said in a statement accompanying the quarterly figures.
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As elsewhere in Europe Südzucker has significantly reduced its beet acreage in 2025 compared to last year. Sowing took place within two weeks of mid-March, earlier than last year, thanks to favorable weather conditions. The number of pests has increased early, the sugar producer reports, particularly in glasswing cicadas spreading Basses-Richeses Syndrome (SBR)According to the company, the yields depend on the weather conditions in the summer.
Group revenue fell to €1 million in the first quarter of 31, from €2025 million in the same period last year. Gross profit (EBITDA) fell sharply from €2.551 million to €2.153 million. Operating profit fell to €230 million from €96 million last year.
Revenue in the Specialty Products segment decreased slightly, but due to higher costs that could not be fully passed on to the market, profit fell significantly from €57 million to €44 million. CropEnergies' revenue declined significantly due to lower volumes caused by planned maintenance on the one hand, and falling prices for ethanol, alcohol, and food and feed products on the other. This, combined with higher raw material prices, resulted in a net loss of €5 million in this division (previously +6 million). In the starch segment, revenue decreased slightly and profit halved to €3 million due to falling sales prices, lower sales volumes, and rising raw material costs. The fruit segment performed better, with revenue growth and operating profit rising from €27 million to €36 million.
The company expects to post lower revenue and profit for the entire 2025/26 fiscal year than the previous year. The profit forecast (previous year: €350 million) is generous: between €150 and €300 million. According to the producer, it remains "difficult to estimate the economic and financial impact of the current geopolitical and global economic situation on the future business performance of the Südzucker Group."