Südzucker AG

For the first half of fiscal 2025/26, group revenue was roughly EUR 4.2 billion, EBITDA was EUR 189 million, operating profit was EUR 42 million, cash flow was EUR 67 million, and EPS was minus EUR 0.38 versus plus EUR 0.61 a year ago. The sugar segment posted EUR 1.4 billion of revenue and an EUR 89 million operating loss, special products revenue was EUR 1.1 billion with EUR 71 million operating profit, CropEnergies revenue was EUR 402 million with a EUR 13 million operating loss, starch revenue was EUR 474 million with EUR 5 million operating profit, and fruit revenue was EUR 858 million with EUR 68 million operating profit. Net financial debt at 31 August was EUR 1.674 billion and the equity ratio was 45%. Full-year guidance remains revenue of EUR 8.3 billion-EUR 8.7 billion, EBITDA of EUR 470 million-EUR 570 million, and operating profit of EUR 100 million-EUR 200 million.

Andreas Rothe framed the call around a weak Q2 and a difficult sugar environment, while stressing that Q3 should be the turning point to the positive. He emphasized that the company’s non-sugar businesses are helping stabilize the portfolio and that management is available for follow-up questions after the call.

Stephan Meeder said H1 was weak but in line with expectations, and reiterated that full-year operating profit guidance of EUR 100 million-EUR 200 million is confirmed after the August 21 reset. He cited H1 revenue of roughly EUR 4.2 billion, EBITDA of EUR 189 million, operating profit of EUR 42 million, cash flow of EUR 67 million, and net financial debt of EUR 1.674 billion; he also noted average interest rates of 3.7% versus 3.4% last year. On capital allocation, he pointed to CapEx of EUR 219 million, continued efforts to reduce spending, and the successful refinancing package including a new EUR 700 million hybrid bond, a EUR 500 million senior bond, and an increased EUR 800 million syndicated loan.

Analysts focused on sugar pricing, leverage, and whether the full-year group target implied a stronger second half than currently visible. Management declined to disclose company-specific sugar prices, said spot exposure is not meaningful because most contracts are one-year deals, and explained that sugar volumes were down across markets while higher-than-expected beet availability and better harvest conditions pressured prices. On leverage, Meeder said comfort is below 3.5x net debt/EBITDA and that the Board remains committed to investment grade; on net debt, management said it expects year-end net financial debt to be roughly in line with last year. CropEnergies questions centered on the sustainability of the ethanol price rebound and the UK Ensus asset; management said prices are volatile, forward curves imply the recent EUR 800 level may not last, Ensus negotiations with the UK government are ongoing, and bio-based chemicals remain strategically important despite a weaker policy backdrop.