Südzucker Cuts Sales, Profit Forecasts

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Südzucker has reduced its yearly income and profit forecasts amid input-cost pressures successful its packaged nutrient and ingredients segment, allied pinch “low” sweetener prices.

The downbeat outlook from nan Mannheim, Germany-based company, 1 of nan world’s largest sweetener suppliers, cuts crossed sales, operating profit and EBITDA for nan 2025/26 fiscal year.   

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Südzucker, which produces vanished nutrient products specified arsenic pizza, fresh meals and snacks, now expects yearly gross to travel successful astatine €8.3bn ($9.6bn) to €8.7bn, compared to a erstwhile projection of €8.7bn to €9.2bn.

The apical extremity of that caller scope would correspond a 10% diminution from nan €9.7bn reported for nan anterior fiscal year.  

The typical products business portion includes Beneo, which produces plant-based functional ingredients for nutrient and animal nutrition, on pinch flours and starches; Freiberger, a shaper of chilled and stiff pizzas, pasta dishes and snacks chiefly for private-label customers successful Europe and nan US; and PortionPack, nan foodservice section for items specified arsenic sauces, sweeteners and powdered drinks. 

Südzucker is now forecasting EBITDA astatine €470m to €570m, down from an earlier scope of €525m to €675m. At best, €570m would construe to a diminution of 22% from nan erstwhile 12 months.

Operating profit is anticipated astatine €100m to €200m, compared to nan earlier outlook of €150m to €300m. The fiscal 2023/24 consequence was €350m.

In its sweetener segment, nan group said: “Persistently debased world marketplace prices mixed pinch nan EU marketplace situation are expected to consequence successful a reduced net publication successful nan 2nd half of nan existent 2025/26 fiscal twelvemonth compared to nan erstwhile forecast. Although nan EU marketplace situation shows value increases, it remains beneath expectations.” 

The Food and Agriculture Organization (FAO) of nan United Nations reported that successful July, its Sugar Price Index fell for nan 5th consecutive month, averaging 103.3 points, down 0.2% from June. 

The FAO said expectations of a world accumulation betterment successful 2025/26, notably successful India and Thailand, weighed connected prices, though signs of a rebound successful world sweetener imports moderated nan decline.

Meanwhile, presenting its caller forecasts, Südzucker warned: “It should beryllium noted that nan economical and financial effect of nan existent geopolitical and world economical business connected nan Südzucker Group’s early business capacity remains difficult to assess.”

In July, Südzucker reported its first-quarter results. Consolidated nett gross for nan group fell 15.7% to €2.15bn.  

EBITDA slid to €96m from €230m and operating profit slumped to €22m from €155m. 

For nan typical products division, first-quarter income dipped 4.3% to €554m. Operating profit for that conception dropped almost 23% to €44m.