Südzucker Q3 Earnings Call Highlights

Core Viewpoint - Südzucker reported a challenging first nine months of fiscal 2025-26, with significant improvement in the third quarter, while reiterating its full-year guidance despite ongoing pressure in the sugar business and stabilization in non-sugar segments [1] Financial Performance - The nine-month performance was described as a "mixed picture," with third-quarter earnings improving compared to both the prior-year quarter and the first half of the year, but nine-month totals were still below the previous year due to a sharp decline in the sugar segment [2] - For the first nine months, Südzucker's revenue was EUR 6.4 billion, EBITDA was EUR 367 million (down from EUR 502 million a year earlier), operating result was EUR 95 million (down from EUR 236 million), and cash flow was EUR 179 million (down from EUR 368 million) [4] Guidance and Outlook - Management reaffirmed its fiscal 2025-26 guidance, expecting group revenue between EUR 8.3 billion and EUR 8.7 billion, and an operating result between EUR 100 million and EUR 200 million [5] - Initial expectations for fiscal 2026-27 include slightly lower group revenue year over year, with EBITDA expected to increase moderately to a range of EUR 480 million to EUR 680 million [3] Sugar Segment Performance - The sugar segment was the primary contributor to the year-on-year decline, reporting an operating loss of EUR 136 million compared to a loss of EUR 23 million in the prior-year period, attributed to sharply lower sugar prices and reduced volumes [6] - Global sugar consumption continues to rise by about 1 million tons per year, but production remains cyclical, with a projected global deficit of 1.5 million tons for 2024-25, followed by a surplus of 3.3 million tons for 2025-26 [7]