Low Prices Significantly Impact Südzucker - Südzucker Profits Plunge as Sugar Segment Losses Mount
Südzucker, a major German sugar producer, has reported a significant drop in profits for the first half of the 2025/26 fiscal year. The company's operating group profit plunged to 42 million euros, a stark contrast to the 269 million euros recorded in the previous year. This downturn was driven by a loss in the sugar segment and a decrease in revenue.
The sugar segment, a key part of Südzucker's operations, reported a loss of 89 million euros, a dramatic shift from the 72 million euros profit in the previous year. This was due to a sharp decline in sugar prices and a decrease in sales volume. Additionally, the bioethanol subsidiary, Cropenergies, also suffered losses due to lower ethanol prices and decreased sales.
The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) also took a hit, falling to 189 million euros from the previous 420 million euros. Overall revenue decreased to 4.199 billion euros from 5.092 billion euros in the previous year.
Despite these challenges, Südzucker has maintained its outlook for the 2025/26 fiscal year, expecting revenue of 8.3 to 8.7 billion euros and operating profit of 100 to 200 million euros. The company will continue to monitor market conditions and adapt its strategies accordingly.
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