Suedzucker reports third-quarter losses on a weak sugar market

Suedzucker, Europe's biggest sugar producer, posted an operating loss on Tuesday. Its core sugar sector was in the red due to weak markets and the turmoil caused by the conflict in Ukraine.

Suedzucker has reported that its group operating loss for the third quarter of 2024/25 ended November 2024 was 33 million euros (33.81 millions), down from 268 million euro profit in the same quarter last year.

Suedzucker warned that its earnings for its third quarter would be lower in October, due to the EU allowing extra sugar imports into Ukraine as a part of their support for the country following the Russian invasion. This is creating competition for EU producers.

The company also confirmed on Tuesday that the group's operating profit for 2024/25 will drop to 175-275 million euros, down from 947 millions in the last fiscal year.

Sugar futures fell to their lowest levels in three-and-a half months in January, as an increase in sugar production in China helped curb imports. Meanwhile, Brazil's sugar production was boosted by a welcome rain. ($1 = 0.9761 euro) (Reporting and editing by Rachel More).

(source: Reuters)