Südzucker reports half-year profit amid rising sugar price concerns

Südzucker, Europe’s largest sugar producer, reports a return to profitability with a 61 million euro surplus for the first half of the year, following a 60 million euro loss in the previous period. This turnaround was driven by higher ethanol prices, strong performance in specialty businesses, and reduced costs. The company’s biofuel subsidiary, CropEnergies, saw a significant EBITDA increase to 68 million euros.

Despite the financial recovery, the company warns of potential sugar price increases. CEO Niels Pörksen noted that drought and low rainfall have impacted the European Union’s sugar beet harvest, with production expected to be approximately 1 million tonnes lower than in 2024. Additionally, a shift in production toward ethanol rather than crystal sugar is expected to tighten supplies. While the sugar segment itself saw an EBITDA of minus 24 million euros due to low market prices, the overall outlook remains supported by strong biofuel demand.