Südzucker (SZU) ERSTE Consumer & Technology Conference presentation summary

Group performance and financial highlights

• Achieved record revenues of €10.3 bn in 2023/24, up 8% year-over-year, with EBITDA rising 23% to €1.3 bn and operating result up 35% to €947 mn.

• Sugar segment revenues surged 29% to €4.2 bn, while non-sugar segments declined 2% to €6.1 bn; sugar EBITDA nearly doubled to €714 mn.

• Net income after minority interests reached €589 mn, with earnings per share at €2.72 and a proposed dividend of €0.90 per share.

• Net financial debt decreased to €1.8 bn, with a net financial debt/cash flow ratio improving to 1.7x.

• S&P and Moody’s upgraded ratings to BBB and Baa2, reflecting improved financial stability.

Segment performance and strategies

• Special products segment saw a 9% revenue increase and 92% rise in operating result, driven by demand for functional food and convenience products.

• CropEnergies segment revenues fell 22% due to lower ethanol prices, with operating result down 76%; focus remains on bio-based chemicals and green ethyl acetate production.

• Starch segment experienced an 11% revenue drop and 31% decline in operating result, with a strategy to expand specialized product offerings.

• Fruit segment revenues rose 6% and operating result increased 67%, maintaining global leadership in fruit preparations and juice concentrates.

• Sugar segment benefited from higher prices, with operating result more than doubling; focus remains on EU market and sustainable production.

Market environment and outlook

• 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.

• For 2024/25, stable revenues of €10.0–10.5 bn are expected, but operating result is forecast to decline to €500–600 mn due to lower average prices and higher costs.

• All segments except fruit juice concentrates anticipate earnings declines, with continued investment in sustainability and capacity expansion.

• Structural cash flow remains robust, supporting ongoing investments and further debt reduction.