{"id":8763,"date":"2025-05-28T11:04:47","date_gmt":"2025-05-28T09:04:47","guid":{"rendered":"https:\/\/www.nordzucker.com\/en\/?post_type=news_article&p=8763"},"modified":"2025-06-10T15:15:13","modified_gmt":"2025-06-10T13:15:13","slug":"nordzucker-2024-2025-annual-financial-statements-positive-result-despite-sharp-price-decline-in-the-eu-sugar-market","status":"publish","type":"news_article","link":"https:\/\/www.nordzucker.com\/en\/news\/nordzucker-2024-2025-annual-financial-statements-positive-result-despite-sharp-price-decline-in-the-eu-sugar-market\/","title":{"rendered":"Nordzucker 2024\/2025 annual financial statements: positive result despite sharp price decline in the EU sugar market"},"content":{"rendered":"
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\n\tNordzucker AG concluded the 2024\/2025 financial year with a positive operating result despite the tense market environment. The operating result \u2013 or EBIT for short \u2013 stood at 100 million Euro compared with 421 million Euro in the previous year. Revenues decreased from 2.923 billion Euro to 2.770 billion Euro. The lower sales revenues and earnings were mainly due to a sharp drop in sugar prices in Europe. Nordzucker is aiming to secure stable earnings and dividends in the future by implementing sustainability and excellence initiatives in its existing business, as well as by further diversifying its areas of business. <\/div>\n\n\n

\u201cDue to the very productive beet harvests and the large volumes of sugar produced as a result, the sugar price in Europe dropped \u2013 much more sharply than initially expected,\u201d explains Lars Gorissen, Chief Executive Officer, at the presentation of the annual financial statements in Braunschweig. Restrained consumer demand and sugar volumes imported to the European market from Ukraine also had an effect. \u201cDespite this, we achieved very positive consolidated comprehensive income in the 2024\/2025 financial year. Therefore, together with the Supervisory Board, we will propose a dividend of 0.40 Euro per share at the Annual General Meeting on 10 July 2025.\u201d<\/p>\n\n\n\n

In the unusually long and high-yield campaign, and with favourable production conditions, Nordzucker produced around three million tonnes of beet sugar \u2013 more than ever before. Net income before minority interests amounted to 84 million Euro, compared with 326 million Euro in the previous year. The EBIT profit margin came to 3.6 per cent (previous year: 14.4 per cent). The Australian subsidiary Mackay Sugar Ltd. contributed 14 million Euro to the operating result.<\/p>\n\n\n\n

\u201cIn the first few months, Nordzucker was still able to benefit from high sales prices before the operating result started to decrease as expected from October 2024,\u201d says Alexander Bott, Chief Financial Officer at Nordzucker. Thanks to our competitive cost structure and solid market position, particularly in Scandinavia, as well as due to the good earnings contributed by our Australian activities with Mackay Sugar Ltd., we are able to present a positive result for the 2024\/2025 financial year,\u201d says Bott. In addition to developments on the market, high prices for commodities and logistics as well as one-off effects continued to affect the operating result.<\/p>\n\n\n\n

Nordzucker is currently budgeting for a net loss in the low double-digit million range for the 2025\/2026 financial year. \u201cWe launched various cost-optimisation measures back in 2024 and ramped up our excellence programmes in order to stabilise our earnings given the situation on the market. The expected price recovery combined with our comprehensive optimisation measures could still improve the earnings for the current financial year compared with the budget,\u201d Bott adds.<\/p>\n\n\n\n

Market stabilisation expected<\/h4>\n\n\n\n

It can be observed that acreage assigned to beet cultivation has been reduced this year in the EU. Nordzucker has also adjusted its beet contracts accordingly. \u201cTogether with our growers, we are making a contribution to relieving the pressure on the market,\u201d says Gorissen. \u201cThe smaller amount of land under cultivation available in the EU has already resulted in the pressure easing. Sugar prices are currently stabilising at a low level \u2013 we therefore believe that prices have already bottomed out,\u201d says Alexander Godow, Chief Operating Officer. However, noticeable price rises are only to be expected from the start of the new sugar marketing year in October 2025.<\/p>\n\n\n\n

Fields for Growth strategy<\/h4>\n\n\n\n

With the goal of reducing its dependence on price fluctuations in the EU sugar market and boosting and stabilising consolidated comprehensive income and the dividend, the company has continued to hone and define its strategy.<\/p>\n\n\n\n

With the title Fields for Growth, Nordzucker will be focusing on two areas that feed into one another. \u201cWe are strengthening the profitability of our business through investments in sustainability and optimising our cost structure through excellence projects. In addition, we are expanding and diversifying our company even further,\u201d says Gorissen. The company\u2019s aim is to cut costs by more than 100 million Euro.<\/p>\n\n\n\n

Via the Science Based Targets initiative, Nordzucker has committed to slashing its CO\u2082 emissions from production by 50 per cent by 2030 compared with the base year of 2018. Furthermore, the company has declared that it wants to reduce its emissions from agriculture and land use by 36 per cent by 2030. These FLAG* targets were confirmed by the Science Based Targets initiative in May 2025. Together with growers, Nordzucker has already successfully launched its first pilot projects, such as the partnership with Yara, which focuses on low-carbon mineral fertilisers. The aim is to reduce the sugar beet carbon footprint. \u201cAchieving our Group-wide sustainability targets will continue to require a high level of investment in the coming years,\u201d explains Godow.<\/p>\n\n\n\n

Sugar from sugar cane: potential for more resilient profitability<\/strong><\/h4>\n\n\n\n

\u201cWe need growth in order to achieve our overarching targets, such as more stable earnings and dividends. For this reason, we will be significantly expanding our sugar cane activities,\u201d Gorissen emphasises. The Australian subsidiary has shown that Nordzucker has successfully taken advantage of global growth opportunities. Mackay Sugar has been making a positive contribution to the overall result for more than five years now.<\/p>\n\n\n\n

\u201cSugar production from sugar cane offers the potential for higher and more resilient profitability in some regions of the world compared with sugar production from sugar beet in the EU. This can compensate for fluctuations,\u201d Gorissen goes on to explain.<\/p>\n\n\n\n

Another potential market for diversification is the area of alternative proteins. \u201cWe continue to see great potential for alternative proteins,\u201d Gorissen says. Nordzucker will not be constructing the planned pea protein factory in Gro\u00df Munzel, Lower Saxony, however, since its profitability cannot be ensured in the current situation. Instead, the company will investigate how it can tap into the market through partnerships and acquisitions.<\/p>\n\n\n\n

Climate change is resulting in specific challenges for beet cultivation<\/h4>\n\n\n\n

Climate change is having a significant impact on farming and beet cultivation. One example is the \u201cSchilf-Glasfl\u00fcgelzikade\u201c, Pentastiridius leporinus. This cicada transmits diseases that affect the beets\u2019 sugar content and their processing quality. In partnership with associations and growers, as well as politicians, cultivators and research institutes, Nordzucker is intensively working towards solutions. \u201cSugar beet is a major player in agriculture and the basis for a secure food supply; it remains economically attractive for our growers and plays a key role in crop rotations,\u201d Lars Gorissen emphasises.<\/p>\n\n\n\n

*FLAG = Forestry, Land and Agriculture<\/p>\n","protected":false},"excerpt":{"rendered":"

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