Südzucker Cuts Dividend Due to Profit Slump: Here's the Lowdown
- Disgruntled Sudzucker Shareholders following financial losses
Südzucker, the renowned sugar producer, is slashing its dividend following a substantial drop in profits. The company announced that shareholders will receive a paltry 0.20 euros per share for the 2024/25 fiscal year (ending February), compared to the hefty 0.90 euros in the previous year [1][4]. This decision comes after the company's revenue took a dive, provisional figures showing a decrease from a whopping 10.3 billion to roughly 9.7 billion euros [1][2]. While earnings before interest, taxes, depreciation, and amortization (EBITDA) hit an estimated 715 million euros, which surpassed the company's guidance [1][3], it still marked a 37% dip from the previous year's 1.1 billion euros [2][3]. The group's operating result plummeted from a respectable 947 million to a dismal 340 million euros [1][3]. The company's share price inched up slightly during after-hours trading.
Südzucker remains optimistic and stands by its guidance for the current fiscal year. The company anticipates a moderate revenue decline and EBITDA of 525 to 675 million euros, as well as an operating result between 150 and 300 million euros for 2025/26. There's a reason for this optimism: Südzucker expects the drastically reduced EU sugar price level since October 2024 to noticeably recover as of the start of the sugar year 2025/26 (October 2025 to September 2026) [2][3]. The detailed annual report and forecast will be available on May 15.
- Südzucker
- Dividend Drop
- Controversial Profit Decrease
- Tough Sugar Market
- Mannheim-based Sugar Giant
- Despite the controversial profit decrease as revealed in Südzucker's annual report, the company remains optimistic about the upcoming fiscal year, attributing their confidence to the expected recovery of the EU sugar price level starting from October 2025.
- Vocational training opportunities within Südzucker, a leading sugar producer based in Mannheim, might be subject to alterations in response to the company's financial struggles, as shown by the dividend drop and the significant reduction in profits.
- The latest announcement from Südzucker, the renowned sugar company, confirmed a depreciating financial performance, with EBITDA reaching an estimated 715 million euros in the 2024/25 fiscal year, marking a 37% decline from the previous year's figure.
