MANNHEIM (dpa-AFX) - The weak sugar market significantly impacted Südzucker in the first half of its 2025/26 fiscal year. The group's operating profit plummeted, and revenue also declined. Nevertheless, the company confirmed the outlook for the business year that it had already downgraded at the end of August.

Shortly after trading began, Südzucker shares, which are listed on the SDax, initially fell around two percent, but later rebounded to gain roughly 1.5 percent. However, since the start of the year, the stock has lost nearly seven percent of its value.

According to analysts at Warburg Research, the profit decline came as no surprise following August's forecast cut. However, the extent of the drop was a negative surprise.

In the first six months, the sugar division posted an operating loss of 89 million euros, compared to a profit of 72 million euros a year earlier. Südzucker said in a statement on Thursday that this was due to "drastically reduced sugar prices and declining sales volumes." Lower production costs were unable to offset these effects. The biofuel subsidiary Cropenergies also reported a loss, impacted by falling prices for ethanol as well as food and animal feed products. Sales volumes also declined. Only the fruit segment performed well.

Group operating profit slumped to 42 million euros during the reporting period, the company added. A year ago, the sugar producer had posted 269 million euros. Earnings before interest, taxes, depreciation, and amortization (EBITDA) dropped sharply to 189 million euros, compared to 420 million euros previously. Group revenue fell by nearly one fifth to 4.2 billion euros.

After Südzucker had already suffered a sharp profit decline in the first quarter due to falling market prices, management lowered its expectations for the current business year through the end of February 2026 in August. The company now expects revenue between 8.3 and 8.7 billion euros. Group EBITDA is projected to range from 470 to 570 million euros. Operating profit is forecast at 100 to 200 million euros. In the previous fiscal year, Südzucker had reported revenue of 9.7 billion euros and an operating profit of 350 million euros./err/mis/men