Südzucker (SZU) Investor presentation summary

Executive summary and outlook

• Revenues for 2024/25 are expected to decline to €9.5–9.9bn, with operating result dropping sharply to €175–275mn from €947mn in 2023/24, mainly due to significant earnings declines in both sugar and non-sugar segments.

• All major segments except fruit are forecast to see lower revenues and operating results, with the sugar segment moving into a negative operating result of -€150 to -€50mn.

• Investment grade ratings were maintained but outlooks were revised to negative due to weaker 2024/25 performance.

• Net financial debt is expected to decrease, supported by strong liquidity and cash flow management, including factoring programs.

• Sustainability remains a focus, with validated SBTi targets and ongoing investments in emission reduction and sustainable production.

Segment performance and strategies

• Sugar: Revenues remain stable but prices have fallen sharply, leading to a negative operating result; cost increases and high-cost inventory sales have worsened Q3 results.

• Special products: Revenues and volumes are slightly down, but margins have improved, keeping earnings stable; focus remains on plant-based, functional, and convenience foods.

• CropEnergies: Revenues and earnings are significantly lower due to falling ethanol prices, despite higher volumes and lower input costs; new green ethyl acetate plant under construction.

• Starch: Revenues and results are down due to lower prices, with some impact from flood-related shutdowns; cost reductions and higher volumes only partially offset price declines.

• Fruit: Only segment with growth, driven by higher volumes and prices in fruit preparations and juice concentrates; moderate increase in operating result expected.

Financial position and capital market

• Equity ratio remains strong at over 41%, with net financial debt reduced to €1.7bn by November 2024.

• Liquidity reserves are robust, exceeding €2.2bn, with diversified funding sources and a balanced maturity profile.

• Investments are focused on sustainability, capacity expansion, and new product development, especially in special products and renewable chemicals.