Südzucker (SZU) dbAccess Global Consumer Conference presentation summary

Executive summary and financial highlights

• Achieved record revenues of €10.3bn (+8%) and EBITDA of €1.3bn (+23%) in 2023/24, with significant gains in the sugar segment offsetting declines in non-sugar segments.

• Operating result rose to €947mn (+35%), and net income after minorities reached €589mn, supporting a proposed dividend of €0.90/share.

• ROCE improved to 13.2%, and net financial debt/cash flow ratio decreased to 1.7x, reflecting strengthened financial health.

• S&P and Moody’s upgraded credit ratings to BBB and Baa2, respectively, in mid-2024.

• Outlook for 2024/25 anticipates stable revenues but a significant decline in earnings due to lower average prices and higher costs.

Segment performance

• Sugar segment revenues surged 29% to €4.2bn, with EBITDA up 87% to €714mn, driven by higher prices despite cost inflation.

• Non-sugar segments (special products, CropEnergies, starch, fruit) saw a 2% revenue decline and a 12% EBITDA drop, with CropEnergies and starch particularly affected by lower prices.

• Special products and fruit segments posted strong earnings growth, while CropEnergies and starch experienced significant declines.

• Investments focused on capacity expansion, efficiency, and sustainability, with €546mn invested in fixed assets.

• Liquidity reserves increased to €2.47bn, with no major refinancing needs until 2025.

Market environment and strategy

• Portfolio benefits from global megatrends such as population growth, rising food demand, and sustainability trends.

• Market conditions remain volatile, with cyclical price swings in sugar, grains, and ethanol.

• Sugar market outlook expects moderate revenue growth in 2024/25, with higher production and sales volumes but lower average prices.

• CropEnergies faces continued ethanol price pressure from high imports, with operating result expected to fall sharply.

• Sustainability remains a core focus, with SBTi-validated targets for emissions reduction and ongoing investments in green technologies.