Europe's largest sugar producer, Südzucker, on Tuesday reported a quarterly operating loss, with its core sugar division in the red on falling prices and market turbulence following the war in Ukraine.
Südzucker reported a group operating loss in the third quarter to end November 2024 of its 2024/25 fiscal year of €33 million, down from operating profit of €268 million in the same year-ago quarter.
Südzucker warned in October its third-quarter earnings would decline, partly because the EU is permitting extra sugar imports from Ukraine as part of its support for the country after the Russian invasion, generating competition for EU producers.
Operating Profit
It confirmed that group operating profit in its full 2024/25 year will fall to between €175 and €275 million from €947 million in the previous fiscal year.
"The main reason for the loss is the depressed EU sugar market with lower prices,” a Südzucker spokesperson said.
"One important factor causing lower EU sugar prices was the decision by the EU to allow massive duty-free sugar imports from Ukraine to support the country during the war."
“The current EU duty free volume limit for Ukraine ends in June 2025. Further EU measures are not yet decided and remain unclear for the time being."
Sugar Prices
EU average sugar prices fell from €856 a metric ton in December 2023 to €619 in October 2024.
Ukraine exported about 495,000 tons of sugar to the EU in 2023, it said. Exports were restricted to 263,000 tons in 2024 and 109,000 tons in the first five months of 2025.
Südzucker expects its sugar sector to make a full-year operating loss between €50-150 million against an operating profit of €558 million last year.
“The latest improvement in world market volume expectations could offer EU price support going forward,” the spokesperson added.
