Südzucker raises forecast floor as first-half EBITDA jumps to €303 million

Südzucker, Europe's leading sugar supplier, has raised its forecast floor for the current fiscal year as first-half core earnings jumped 60%. The company announced that operating EBITDA in the first half of fiscal 2026/27 rose to €303 million, up from €189 million a year earlier. Despite drought conditions threatening this year's sugar beet harvest, Südzucker now anticipates full-year operating EBITDA between €540 million and €680 million, an increase from the previous forecast of €480 million to €680 million.

Revenue remained stable at €4.19 billion, with management expressing optimism about achieving these targets and noting early signs of success. CEO Niels Pörksen highlighted efforts to enhance efficiency and reduce costs across the value chain. Drought conditions, particularly severe in southern Germany and France, have significantly reduced beet crop yields, impacting the projected sugar production for the 2026 season.

This has led to a decrease in sugar segment revenue to €1.27 billion, down from €1.39 billion, due to lower prices and sales volumes. However, CropEnergies, Südzucker's subsidiary in ethanol production, saw operating EBITDA rise to €68 million, up from €4 million, primarily driven by higher ethanol prices and reduced raw material costs.

Overall, Südzucker's performance was bolstered by its other divisions, with EBITDA increases reported in special products, starch, and fruit segments.