Südzucker (SZU) Q1 24/25 earnings summary

Executive summary

• Q1 2024/25 revenues rose 1.3% to €2.55 billion, but EBITDA fell 35.4% to €230 million and operating result dropped 45% to €155 million due to lower prices and higher costs in key segments.

• Net earnings attributable to shareholders declined over 51% to €83 million, with EPS at €0.36, down from €0.80.

• Cash flow decreased 39.7% to €178 million, while net financial debt improved to €1.64 billion from €1.95 billion a year earlier.

• Full-year 2024/25 guidance is confirmed, but the lower end of the range is now more likely due to price volatility, especially in the sugar segment.

Financial highlights

• EBITDA margin dropped to 9.0% from 14.1% year-over-year; operating margin fell to 6.1% from 11.2%.

• Net financial debt reduced by €330 million year-over-year, standing at €1.6 billion; equity ratio improved to 46%.

• Cash flow for the quarter was €178 million, with a cash flow to revenue ratio of 7% (down from 11.7%).

• Investments in fixed assets increased 43% to €113 million.

• Earnings per share were €0.36; cash flow per share was €0.87.

Outlook and guidance

• Full-year revenue expected between €10.0–10.5 billion, in line with the previous year.

• Operating profit guidance remains €500–600 million, with the lower end more likely.

• EBITDA forecast unchanged at €0.9–1.0 billion.

• ROCE expected to be significantly below prior year due to lower operating profit.

• Investments to focus on sustainability, energy efficiency, and capacity expansion in key segments.