MANNHEIM (dpa-AFX) – The weak sugar market continues to weigh on Südzucker’s performance, a situation the Mannheim-based company has been unable to offset even with lower production costs. Revenue fell by 15 percent to just under €6.4 billion in the first nine months of the 2025/26 fiscal year, the SDax-listed company announced Tuesday in Mannheim. Operating profit plummeted by 60 percent to €95 million. In the sugar, specialties, Cropenergies, and starch segments, Südzucker was hit by lower prices and declining sales volumes. The fruit business, on the other hand, benefited from higher prices.

Bottom line, shareholders faced a loss of €59 million, compared to a profit of €23 million in the previous year. Nevertheless, management reaffirmed its full-year forecast.

Following the news, Südzucker shares lost more than three percent, falling to €9.125. Over the past twelve months, the stock has shed around eleven percent. According to Barclays analyst Alex Sloane, the reported figures were in line with expectations. Management had already spoken of a persistently challenging sugar market back in December.

Südzucker’s leadership team, headed by CEO Niels Pörksen, maintained its annual forecast for the current 2025/26 fiscal year ending in February. The company continues to anticipate a decline in revenue to between €8.3 and €8.7 billion, down from €9.7 billion the previous year. Earnings before interest, taxes, depreciation, and amortization (Ebitda) are expected to deteriorate from €723 million to between €470 and €570 million. According to the company, operating profit is likely to collapse from €350 million to between €100 and €200 million.

Südzucker also expects the sugar market to remain challenging in the upcoming 2026/27 fiscal year. In the sugar segment, the company stated in mid-December that “no significant” recovery in results is expected. In contrast, Südzucker anticipates a marked improvement in results at its Cropenergies subsidiary, thanks to higher premiums on ethanol sales and lower net raw material costs, as well as in the specialties division, due to rising sales volumes.

Overall, revenue for the fiscal year running through the end of February 2027 is expected to decline slightly. The group forecasts earnings before interest, taxes, depreciation, and amortization at between €480 and €680 million./err/stw/stk