Nordzucker Hit Hard by Falling Sugar Prices – Profit Plummets in 2024/25
Nordzucker Hit Hard by Falling Sugar Prices – Profit Plummets in 2024/25
Braunschweig-based sugar producer Nordzucker reported a sharp decline in earnings for the financial year 2024/25, driven primarily by the significant fall in EU sugar prices since autumn 2024. The company expects to report a negative result in the lower double-digit million euro range for the current year 2025/26.📊 Financial Results: Net Profit Drops by Nearly 75%
- Revenue 2024/25: €2.77 billion (vs. €2.92 billion in 2023/24)
- Net profit after tax: €84 million (vs. €326 million in prior year)
- The operating result turned negative in the second half, following the October 2024 price decline.
- Rising raw material and logistics costs further squeezed margins.
📉 Market Conditions: Sugar Prices on the Decline
- EU sugar prices had peaked in 2023.
- Since October 2024, prices have dropped significantly, more than expected.
- According to CEO Lars Gorissen, sugar prices fell due to a large sugar beet harvest and were lower than originally anticipated.
- Nordzucker expects a modest price recovery starting in Q4 2025.
📈 Outlook & Key Metrics
🧭 Strategic Assessment
Nordzucker finds itself in a volatile margin environment, highly exposed to EU sugar price movements. While FY 2023/24 delivered near-record results thanks to price highs, FY 2024/25 demonstrates how quickly profitability can erode in a downward market.📍 Conclusion:Despite its strong market presence and efficient operations, Nordzucker is vulnerable to international price swings. Without a sustained price recovery, earnings potential in 2025/26 remains limited.
Who is Nordzucker?
Nordzucker AG is one of Europe’s leading sugar producers, headquartered in Braunschweig, Germany. The company manufactures white crystal sugar, liquid sugar, refined sugar, and organic sugar for the food and beverage industry, wholesale trade, and consumers.🌍 Role and Relevance in Europe
- Europe’s second-largest sugar producer (after Südzucker)
- Active in 13 European countries, including Germany, Denmark, Poland, Sweden, Finland, Lithuania, Estonia, the Czech Republic, and Slovakia
- Employs approx. 3,000 people across Europe
- Generated approx. €2.8 billion in annual revenue (2023/24)
- Works closely with over 13,000 sugar beet farmers
- Key supplier to the European food, beverage, and confectionery industries
⚙️ Production & Strategy
- Operates 13 sugar factories in Europe
- Holds additional stakes in international ventures (e.g. in Australia)
- Increasing focus on sustainability, digitalisation, and bioenergy
📌 Conclusion:Nordzucker is a key player in the EU sugar market, both in terms of production capacity and market influence. Its close ties to European beet agriculture and its role in shaping pricing and trade policy make it a strategically important organisation.
