Südzucker reduces sales, profit forecasts amid input-cost pressures
Rising material costs and mounting price pressure have eroded margins, with Südzucker admitting that these costs can only be partially passed on to customers.
GERMANY – Südzucker AG, a multinational corporation and one of the largest food industry companies in Europe, has revised its financial outlook for fiscal 2025/26, citing persistent cost inflation in its packaged food and ingredients segment, and subdued global sugar prices.
The company now expects annual revenue to fall between €8.3 billion (US $8.97B) and €8.7 billion (US $9.40B), down from its previous forecast of €8.7 billion (US$9.40B) to €9.2 billion (US$9.95B), a potential 10% drop from the €9.7 billion (US$10.49B) posted last year.
The downgrade spans across key financial metrics.
Südzucker’s projected EBITDA has been cut to €470 million-€570 million (US$508M-US$616M), compared to the earlier range of €525 million-€675 million (US$568M–US$730M).
Operating profit is now forecast to be between €100 million and €200 million (US$108M-US$216M), a steep decline from the prior range of €150 million to €300 million (US$162M-US$324M) and far below the €350 million (US$378M) achieved in 2024/25.
The company’s special products division, which includes brands like Beneo (plant-based ingredients), Freiberger (frozen pizzas and ready meals), and PortionPack (foodservice items), has been hit particularly hard.
Rising material costs and mounting price pressure have eroded margins, with Südzucker admitting that these costs can only be partially passed on to customers.
In its sugar segment, the group faces “persistently low global market prices” and a challenging EU market environment. Although some price increases have been observed within the EU, they remain below expectations.
The Food and Agriculture Organization (FAO) reported that global sugar prices have declined for five consecutive months, driven by anticipated production recoveries in India and Thailand.
Südzucker’s ethanol-focused CropEnergies division is also under pressure.
The company cited low ethanol prices and technical setbacks following a scheduled maintenance shutdown, which are expected to have a significant impact on operating profit.
First-quarter results for 2025/26 already reflect the downturn.
Group revenue dropped 15.7% to €2.15 billion (US$2.32B), EBITDA fell to €96 million (US$2.32M) from €230 million (US$249M), and operating profit plunged to €22 million (US$24M) from €155 million (US$167M) year-over-year.
The company warned that ongoing geopolitical and economic uncertainties make predicting future performance difficult.
Despite the challenges, Südzucker remains committed to its diversified portfolio and long-term strategy.
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