Südzucker AG reported a challenging first nine months of fiscal 2025-26, though third-quarter results showed meaningful improvement. Chief Financial Officer Dr. Stephan Meeder described the period as a "mixed picture." The company's nine-month EBITDA fell to EUR 367 million from EUR 502 million a year earlier, while operating result dropped to EUR 95 million from EUR 236 million. Revenue for the period was EUR 6.4 billion.
Net financial debt increased by EUR 181 million to EUR 1.835 billion as of the end of November. Meeder identified this as a key management focus alongside ongoing restructuring efforts.
The sugar segment was the primary contributor to the decline, recording an operating loss of minus EUR 136 million compared to minus EUR 23 million in the prior-year period. Management attributed this to sharply lower sugar prices, reduced volumes, and high ending stocks. Global market white sugar prices fell during summer 2025 to roughly EUR 350 per ton before ending November at EUR 377 per ton.
Meeder discussed recent trade developments, describing the finalized EU-Ukraine Association Agreement in October as negative due to an increased sugar tariff quota. Regarding the Mercosur agreement signed Jan. 9, management said it was still evaluating details but viewed it as negative for Südzucker and as "unfair competition." Meeder said Brazil would receive a duty-free quota of 180,000 tons under the agreement.
When asked whether sugar's challenges are structural, Meeder agreed that the situation is tough across the industry and "each and everybody is in a loss situation" at current price levels.
Management confirmed its fiscal 2025-26 guidance, expecting group revenue of EUR 8.3 billion to EUR 8.7 billion and operating result of EUR 100 million to EUR 200 million. Meeder said the company remained "slightly below midpoint" of the operating profit range.
Beyond sugar, performance varied by segment. The food segment showed improvement, with nine-month revenue rising to EUR 1.245 billion and operating result significantly above the prior year. CropEnergies revenue was down significantly due mainly to lower volumes from maintenance issues, though management reiterated expectations that fiscal 2025-26 operating result would be on par with last year.
Cash flow for the nine months was EUR 179 million, down from EUR 368 million a year earlier. Capex totaled EUR 322 million, nearly EUR 100 million below the prior-year period. Earnings per share came in at minus EUR 0.40 versus EUR 0.01 a year earlier.
Looking ahead, management expects another operating loss in the sugar segment in the fourth quarter and anticipates a difficult environment for sugar into fiscal 2026-27. The company pointed to contributions from non-sugar segments as an important stabilizer.