HAMBURG, Jan 13 (Reuters) - Europe's largest sugar producer Suedzucker reported a third-quarter operating profit on Tuesday, as its non-sugar sector, especially fruit, helped overcome a weak EU sugar market.
The German company said operating profit in the quarter ended November 2025 of its 2025/26 fiscal year totalled 53 million euros ($61.81 million), up from an operating loss of 33 million euros in the same quarter the previous year.
The company cut third-quarter losses from its sugar sector to 47 million euros from 95 million euros last year.
Warning that the EU sugar market is likely to remain depressed, Suedzucker confirmed its forecast of full-year 2025/26 operating profit of between 100 and 200 million euros, down from 350 million last year. The group has extensive non-sugar activities ranging from biofuels and starch to pizza and fresh fruit.
Data showed that average EU sugar prices fell to 532 euros a metric ton in November 2025 from 600 euros in November 2024, although the EU restricted cheap Ukrainian sugar imports following farmer protests.
"The challenge we are facing is that sugar production, both in the EU and worldwide, is too high and above consumption," a Suedzucker spokesperson said. "Prices remain low, and the sugar market conditions continue to be highly challenging. No significant earnings recovery in the sugar market is expected."
Sugar prices did not recover in autumn 2025 due to the decline in world market prices and the larger-than-expected beet harvest in Europe, the company said.
A considerable reduction in production costs was insufficient to compensate for the price falls, Suedzucker said. Sugar inventories manufactured at high costs had to be sold at lower prices.
Suedzucker said it expects a sugar sector operating loss in the fourth quarter of the current fiscal year.
Reporting by Michael Hogan, editing by Miranda Murray and Harikrishnan Nair
Source: Reuters