HAMBURG (Reuters) – Europe’s largest sugar producer Suedzucker on Thursday confirmed it expected a decline in earnings this financial year, with the EU sugar market remaining weak in coming months.
It said that it hoped, however, for a sugar market improvement from October 2025.
The company confirmed its previous forecast for full-year group operating profit of between 150 million and 300 million euros ($168 million-$336 million), down from 350 million euros in the year to the end of February 2025.
“The significant drop in sugar prices in fiscal 2024/25 will impact the market until autumn 2025,” the company said. “For the 2025/26 sugar marketing year, we expect lower sugar production in the EU, leading to a recovery in sugar prices at the beginning of the 2025/26 sugar marketing year in October 2025.”
European Union sugar producers have suffered from low prices because of the bloc’s decision to allow imports of cheap Ukrainian sugar as part of its support for the country following Russia’s invasion.
Reuters reported in March that the EU was looking to cut Ukrainian sugar imports sharply after European producers complained that large shipments had fuelled a collapse in prices.
Suedzucker CEO Niels Poerksen told Reuters after a press conference to present results that the group didn’t plan to close any sugar production capacity despite the current poor market.
There were signs that sales volumes of Ukrainian sugar in the EU were falling, he said, despite the lack of an EU decision about whether to continue duty-free imports.
“That shows that Ukraine has found other marketing channels in the world market which are of interest to them,” he said.
This was expected to contribute to stronger EU sugar prices along with a smaller EU sugar crop.
The company expects an operating loss in its sugar sector of between 100 and 200 million euros this financial year. Suedzucker has a wide range of other businesses from bioenergy to processed foods.
(Reporting by Michael Hogan. Editing by Mark Potter)
