UK – Südzucker AG, Europe’s largest sugar producer, has announced a 4% decline in group revenues for the first three quarters of fiscal 2024/25, falling to €7,466 million (US$7.7B) from €7,779 million (US$8.02B) in the previous year.
The drop reflects challenging market conditions across multiple business segments.
According to the company, revenues decreased in its special products, CropEnergies, and starch divisions, while the sugar segment remained stable year-on-year.
The fruit segment experienced a slight revenue increase. Group EBITDA also fell significantly, declining from €1,124 million (US$1.2B) to €502 million (US$517.5B) during the same period.
In the third quarter of fiscal 2024/25, Südzucker reported a consolidated group operating loss of €33 million (US$34.02M), a stark contrast to the €268 million (US$376.3M) operating profit recorded in the year-ago quarter.
Revenues in the sugar segment during the quarter were marginally lower, totaling €3,104 million (US$3.2B) compared to €3,106 million (US$3.202M) in the prior year.
The company attributed the decline in the sugar segment to a steep drop in EU sugar prices. Average sugar prices in the EU fell from €856 per metric ton in December 2023 to €619 in October 2024.
Südzucker noted that one significant factor behind this price reduction was the EU’s decision to allow duty-free sugar imports from Ukraine as part of support measures during the ongoing war.
In 2023, Ukraine exported 495,000 metric tons of sugar to the EU, with exports restricted to 263,000 tons in 2024 and 109,000 tons in the first five months of 2025.
Other segments also faced headwinds. Revenues in the special products segment declined from €1,818 million (US$1.9B) to €1,704 million (US$1.8B) due to lower volumes and prices.
In the CropEnergies segment, revenues dropped to €711 million (US$732.97M), driven by falling ethanol and food product prices, although volumes increased compared to last year.
Looking ahead, Südzucker forecasts full-year group revenues for fiscal 2024/25 to range between €9.5 billion (US$9.8B) and €9.9 billion (US$10.2B).
Group EBITDA is expected to land between €550 million (US$567M) and €650 million (US$670.1M), with a consolidated operating result projected at €175 million to €275 million.
The sugar segment is anticipated to incur a full-year operating loss between €50 million (US$51.5M) and €150 million (US$154.6M), contrasting sharply with an operating profit of €558 million (US$575.2M) last year.
However, the company highlighted potential price support for the EU sugar market due to improving global market volume expectations.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.