MANNHEIM (dpa-AFX) - Food company Südzucker expects the sugar market to remain difficult in the new fiscal year. The company therefore does not anticipate any major improvements in the new fiscal year. Sales are likely to continue to decline and operating profit is expected to rise only moderately, if at all. In the summer, Südzucker had already lowered its forecast for the current 2025/26 fiscal year (ending in February) due to significantly lower sugar prices and sales volumes.

This did not go down well on the stock market. The SDax-listed share lost more than four percent at the start of trading on Wednesday, reaching a new low since 2008. The price then stabilized somewhat. Market experts had hoped for a significant increase in earnings for the new fiscal year. Analyst Michael Kuhn of Deutsche Bank therefore interpreted the outlook as a profit warning. Even his colleagues' lowest estimate for operating profit was above Südzucker's target range, Kuhn complained.

Südzucker announced on Tuesday evening after the close of trading that there would be "no significant" recovery in earnings in the sugar segment in 2026/27. On the other hand, the group expects significant earnings growth both at its subsidiary Cropenergies, thanks to higher premiums on ethanol sales and lower net raw material costs, and in its specialties division, thanks to rising sales volumes.

Overall, sales are likely to decline slightly in the fiscal year ending February 2027. The group expects earnings before interest, taxes, depreciation, and amortization (EBITDA) to be between €480 million and €680 million – well below analysts' expectations, which average €751 million. Compared to the previous year, this would represent a moderate increase in the middle of the range.

Südzucker confirmed its forecast for the current fiscal year. Sales are expected to decline from €9.7 billion to between €8.3 billion and €8.7 billion, while EBITDA is expected to decline from €723 million to between €470 million and €570 million. Südzucker continues to anticipate a significant increase in EBITDA in the third quarter. Südzucker plans to publish its quarterly report on January 13. /nas/men/tav/jha/