Südzucker AG Raises Full-Year Earnings Outlook After First-Half Profit Surge
Südzucker AG reported a sharp rise in its operating EBITDA for the first half of the 2026/27 fiscal year, reaching €303 million compared to €189 million in the same period last year. Despite the profit jump, first-half revenues remained relatively flat at €4.19 billion, slightly down from €4.20 billion a year earlier. Following these results, the company raised its full-year guidance, projecting revenue of €8.3 billion to €8.7 billion and EBITDA between €540 million and €680 million.
The improved profitability was driven primarily by cost-cutting measures and a strong performance in other segments rather than top-line growth. In the sugar division, losses narrowed to €24 million from €46 million last year, helped by cost reductions that offset lower prices and volumes. Meanwhile, the CropEnergies division saw its EBITDA surge to €68 million from just €4 million, boosted by favorable ethanol pricing and lower raw material expenses.
Investors will be watching how the company performs in the second half of the year against its newly upgraded outlook. Key factors to monitor include the company's ability to maintain its improved profit margins, the impact of potential droughts on 2026 sugar yields, and overall capacity utilization across its facilities.
Key points
- Südzucker AG's first-half operating EBITDA rose to €303 million from €189 million in the previous year.
- First-half revenues remained stable at €4.19 billion, compared to €4.20 billion in the prior period.
- The company raised its full-year EBITDA forecast to a range of €540 million to €680 million.
- EBITDA for the CropEnergies division jumped to €68 million from €4 million due to favorable ethanol pricing.
- Sugar segment losses narrowed to €24 million from €46 million, aided by cost-cutting efforts.
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Why did Südzucker AG's first-half EBITDA increase?
The increase was driven by cost reductions, narrowing losses in its sugar segment, and a strong profit recovery in its CropEnergies ethanol division due to favorable pricing and lower raw material costs.
What is Südzucker AG's updated outlook for the full 2026/27 fiscal year?
The company raised its full-year revenue outlook to a range of €8.3 billion to €8.7 billion and its EBITDA forecast to a range of €540 million to €680 million.