Hamburg: Germany’s second-largest sugar refiner, Nordzucker, has warned that it expects to report an operating loss for the current financial year as weak sugar prices across the European Union continue to weigh heavily on producers, reports Global Banking & Finance review.
In a statement issued on Thursday, the company said it now expects an operating loss running into several tens of millions of euros, a sharp deterioration from earlier expectations. In the previous financial year, Nordzucker had posted an operating profit of about 100 million euros.
EU sugar prices have fallen to their lowest levels in nearly four years, while global sugar prices are hovering near five-year lows. The pressure has prompted European producers to ask farmers to reduce sugar beet planting, according to a Reuters report earlier this week. Other major players have also flagged difficulties, with Germany’s largest sugar producer Suedzucker warning that low prices would hurt earnings, and France’s Tereos reporting a steep drop in first-half profits in November.
Nordzucker said strong harvests in Brazil, India and the EU have led to abundant supply, adding to price pressure in the European market. Uncertainty over import tariffs and exchange rate movements has further complicated the situation, while declining sugar consumption is also dragging down overall sales.
The company’s chief operating officer, Alexander Godow, said the combination of sharply lower prices and large volumes has dominated the market for several months, adding that a meaningful recovery in prices is unlikely in the near term.
In response, Nordzucker said it is stepping up its cost-cutting and efficiency measures to manage the challenging environment.
The company noted that the 2025-26 sugar beet processing campaign benefited from favourable harvest conditions during autumn and winter. Processing in Finland and Lithuania concluded in December, while German factories are set to finish operations in the second half of January. Processing will then be completed at plants in Sweden, Slovakia, Denmark and Poland.
Nordzucker is an unlisted company and one of Europe’s major sugar producers.
