German sugar refiner Nordzucker anticipates losses as EU prices remain low

Nordzucker, Germany's second-largest sugar refiner, expects a loss for its new financial period as EU sugar prices remain low. The company announced this on Wednesday.

Nordzucker reported on Wednesday a 76% drop in operating profit in its fiscal year 2024/25 to approximately 100 million euros (113.19 millions). Sales dropped 5.2% to 2,770 billion euros.

Nordzucker stated in a press release that the main reason for the decline in sales was the sharp fall in sugar prices across Europe.

Nordzucker, a company not listed on the stock exchange, has warned that the low EU sugar price will affect earnings. This warning was also issued by Suedzucker, Germany's largest producer of sugar, and Tereos in France.

Sugar producers in the European Union have been hit by low prices due to the decision of the bloc to allow the importation of cheap Ukrainian sugar, as part of their support for Ukraine following Russia's invasion.

Nordzucker expects to incur operating losses of low double digit millions in its 2025/26 new financial year.

The company stated that it "expects a stabilisation" of the EU Sugar Market, partly due to the reduction in sugar beet cultivated this year across the EU.

Alexander Godow, chief operating officer of the company, said that the market is already showing signs of improvement due to the smaller area in the EU.

The sugar price is currently stabilizing at a low rate, and we consider that the price trough has already passed. The next significant price increase is not expected before October 2025 with the beginning of the new sugar year. ($1 = 0.8835 euro) (Reporting and editing by Jane Merriman).

(source: Reuters)