Nordzucker Post 4/2026 - 28 May 2026

Together through exceptionally challenging times – with confidence and a clear course

Dear readers,

These times call for clarity. And so I will get straight to the point: due to a combination of various circumstances, the company’s economic situation is more strained and challenging than it has been for decades. This is due to two consecutive above-average harvests in Europe, a surplus of sugar in the EU, a significant fall in prices, high raw material and energy costs as well as structural decline in sugar consumption. This complex situation is reflected in the figures – more clearly than we had anticipated even last year: Nordzucker’s revenues fell by around 16 per cent in the 2025/2026 financial year, whilst an operating resultof minus 226 million Euro – a historically low result for Nordzucker.

Price volatility in the sugar market is part of our business. But the current dynamics are extreme. Sugar production volumes over the past two years were so high that the decline in prices was unusually sharp. High volume expectations on the world market, declining world market prices, and the effects of interest rates and tariff policies have exacerbated the negative trend. To relieve pressure on the market, we have once again reduced the cultivation area. We therefore expect the balance between supply and demand to improve and anticipate a gradual recovery in price levels with the new growing year.

These times call for decisive action. Through our excellence programmes, we set the course early on to optimise all business areas. The additional contingency programme we have launched aims to reduce administrative costs, improve the network structure in production and strengthen profitability – particularly in Germany. We have already implemented comprehensive structural measures: for instance, we have ended sugar production in Slovakia; the site will continue to operate as a commercial and logistics hub. In Finland, our subsidiary will end raw sugar refining at one of its two sites. We are already seeing the first positive effects – but the programmes will only begin to have a more significant impact over the next two years. We are committed to strengthening our market position further.

We have a clear course and a clear strategy. Our focus will remain on Germany and Europe in the future – sugar beet is and will remain our core business. At the same time, we are diversifying into cane sugar and Smart Ingredients, that is, alternative proteins and functional ingredients. In this way, we are increasing our stability, improving our profitability, and creating long-term prospects.

These are times that call for teamwork. Across all areas, we have created the conditions to become more resilient and operate profitably in an extremely challenging market environment. Beet growing and sugar production remain a joint task. The introduction of the new beet price model for Germany, which we agreed upon together with the growers’ associations, was an important step and sends a clear signal to other Nordzucker countries. It underlines that all partners along the value chain are prepared to play their part in ensuring that beet remains attractive and offers long-term prospects. That gives me confidence. Let us emerge from these times stronger than ever.

Kind regards
Lars Gorissen, CEO