Südzucker: Südzucker with significant increase in operating EBITDA in the first half of fiscal 2026/27

Consolidated group revenues of Südzucker AG remained stable at EUR 4,188 (previous year: 4,199) million in the first half of fiscal 2026/27 (1 March to 31 August 2026). Revenues declined moderately in the sugar segment and slightly in the starch segment, but increased moderately in the CropEnergies, fruit and special products segments.

Group operating EBITDA rose significantly to EUR 303 (previous year: 189) million. The significant improvement in the special products, starch and CropEnergies segments was offset by a moderate decline in the fruit segment. The sugar segment saw a significant reduction in its negative operating EBITDA. "Across the entire Group, we are working hard to improve our efficiency and further reduce costs along the entire value chain," says Dr Niels Pörksen, CEO of Südzucker AG. "We are well on the way to achieving this and are seeing the first signs of success."

The sugar segment's revenues declined moderately to EUR 1,269 (previous year: 1,389) million. This decline is attributable to both a further decrease in sugar prices and lower sales volumes. Negative operating EBITDA was reduced to EUR -24 (previous year: -46) million. This significant improvement in results was achieved despite lower revenues, driven by a further reduction in production costs during the 2025 campaign. Drought-related deterioration in harvest expectations increased the burden from expected underutilization of processing capacity during the 2026 campaign (idle capacity costs) in the second quarter of 2026/27.

Following a good start to the season, persistent heat, exceptionally low rainfall and the resulting severe drought since June led to a significant deterioration in the condition of the beet crops and, consequently, a substantial decline in expected beet yields. Southern Germany and France were particularly affected by extreme weather conditions, resulting in significant drought damage. The yield outlook is also being adversely affected by SBR and Stolbur in southern Germany and by virus yellows and damage caused by Lixus and Rhizopus in France. Regional rainfall in August only partially mitigated the effects of the drought. Due to the smaller cultivation area and significantly lower yield expectations, sugar production in the 2026 campaign is expected to be significantly lower than in the previous year.

The special products segment's revenues increased moderately year over year to EUR 1,131 (previous year: 1,076) million, driven by higher overall sales volumes. Operating EBITDA rose significantly to EUR 140 (previous year: 115) million. Higher overall sales volumes and, in some cases, lower costs more than offset the impact of partially declining prices.

The CropEnergies segment's revenues increased moderately to EUR 438 (previous year: 402) million due to significantly higher prices for renewable ethanol, despite slightly lower overall sales volumes. At EUR 68 (previous year: 4) million, operating EBITDA was significantly higher than last year. Substantially higher prices for renewable ethanol and significantly lower net raw material costs had a positive impact in the reporting period.

The starch segment recorded a slight decline in revenues to EUR 456 (previous year: 474) million. Higher sales volumes for the main products and increased ethanol prices mitigated lower selling prices for starch and sweetening products. Sales of native and modified starches in particular showed satisfactory development. At EUR 36 (previous year: 29) million, operating EBITDA was significantly higher than in the previous year. This was mainly due to higher margins in the ethanol business. Selling prices for all main products except ethanol were down year over year, as were raw material prices.

In the fruit segment, revenues increased moderately to EUR 894 (previous year: 858) million. Operating EBITDA declined slightly to EUR 83 (previous year: 87) million.

The Group's forecast was adjusted on 28 September 2026. Now consolidated group revenues in fiscal 2026/27 are expected to be between EUR 8.3 and 8.7 (previous forecast: 8.1 to 8.5; 2025/26: 8.4) billion. Operating group EBITDA for fiscal year 2026/27 is now expected to be within a range of EUR 540 to 680 (previous forecast: 480 to 680; 2025/26: 535) million. Based on expected stable capital employed, a significant rise in ROCE is forecast (2025/26: 2.7 percent).

"The adjusted forecast also reflects the initial success of the measures introduced over the last 12 months in the operating figures," Dr Niels Pörksen says, adding: "We will continue to pursue this course of action consistently in order to remain successful even in economically challenging times."

Overall, it remains difficult to assess the economic and financial impact of the current geopolitical and global economic situation on the future business performance of the Südzucker Group.