HAMBURG, Jan 15 (Reuters) - Germany's second-largest sugar refiner, Nordzucker, warned on Thursday it would swing to an annual operating loss on depressed EU sugar prices that are hitting producers
Nordzucker Anticipates Significant Losses Amidst Weak Sugar Market
Nordzucker's Financial Outlook
HAMBURG, Jan 15 (Reuters) - Germany's second-largest sugar refiner, Nordzucker, warned on Thursday it would swing to an annual operating loss on depressed EU sugar prices that are hitting producers across the market.
Market Conditions and Price Pressures
"Nordzucker expects an operating loss in the high double-digit million range for the current financial year, which is significantly worse than expected," the unlisted company said in a statement. It reported a 100 million euro ($116 million) operating profit in its previous financial year.
Company's Response and Strategies
EU sugar prices are around four-year lows and world prices <SBc1> are near five-year lows, with Reuters reporting on Wednesday that European producers are asking farmers to cut sugar beet plantings.
Germany's largest sugar producer Suedzucker <SZUG.DE> on Tuesday also said low sugar prices would pressure earnings, while France's Tereos reported a plunge in first-half profits in November.
High harvest yields in Brazil, India and the EU, plus uncertainties about import tariffs and exchange rate fluctuations, are increasing price pressures in the EU sugar market, while declining sugar consumption is also reducing overall sugar sales, Nordzucker said.
"The significantly lower price level combined with large quantities available has been shaping the market for months," chief operating officer Alexander Godow said in a statement. "Due to these developments, no substantial price recovery is to be expected for the time being."
The company is expanding its cost-cutting and efficiency programme.
Nordzucker said the 2025/2026 beet processing campaign this autumn and winter saw good harvest conditions.
The sugar beet processing campaign in Finland and Lithuania ended in December. German sugar factories will complete their campaign in the second half of January, followed by the sugar factories in Sweden, Slovakia, Denmark and Poland, it said.
($1 = 0.8596 euros)
(Reporting by Michael Hogan. Editing by Mark Potter)
