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Sugar producer Suedzucker’s profit falls 85% due to weak prices

Suedzucker, Europe's biggest sugar producer, posted a 85% drop in its quarterly operating profit Thursday. The low sugar prices within the European Union were to blame.

The German company reported a profit of 22 millions euros ($25.82) for the first three months ending in May, down from 155million euros a year ago.

The group confirmed that it expects to achieve an operating profit between 150 and 300 millions euros for the full year, a decrease from 350 millions euros last year.

Suedzucker said on Wednesday that it also expected to see a significant drop in second-quarter earnings.

Sugar segment of the firm reported a loss of 56 millions euros for the first quarter, compared to a profit last year of 59million euros.

Suedzucker stated that the significant drop in results could be attributed to the decline in sugar prices. He added that lower production costs may compensate for this.

EU sugar prices dropped to 540 Euros per metric ton by May 2025, from 619 Euros in October 2024. This was partly due to the importation of cheap Ukrainian sugar in order to help Ukraine recover after Russia's invasion. The EU intends to reduce imports of Ukrainian sweetener by as much as 80%.

A spokesperson for Suedzucker stated: "The EU still has not made a final decision on imports of Ukrainian Sugar so we are not able to assess the impact of any EU sanctions Ukrainian imports."

"But we anticipate higher EU sugar prices at the beginning of the next sugar season, in October 2025. This is due to the significant reduction in EU production of sugar as a result of a smaller beet-cultivated area."

Negotiations on an increased import quota of sugar from Ukraine continue. The spokesperson said that this poses a serious risk. (Reporting and editing by Miranda Murray, Sonia Cheema and Michael Hogan)

(source: Reuters)