Germany’s second-largest sugar producer Nordzucker is contemplating firm acquisitions to increase its cane sugar enterprise in South America, CEO Lars Gorissen instructed Reuters.
After the takeover of Australia’s Mackay Sugar in 2019, Nordzucker is once more contemplating acquisitions within the cane sugar sector, Gorissen mentioned after a press convention to current the corporate’s monetary outcomes on Thursday.
Gorissen mentioned Nordzucker plans to increase the share of its core earnings to 50% from non-European sugar from about 15% now largely although enlargement of its cane sugar sector.
He instructed Reuters after the press convention, “We need to increase our cane sugar sector primarily by way of cooperation or acquisitions, by way of M&A.”
“We have now been taking a look at worldwide potentialities for acquisitions together with in Africa, Asia and Australia and we now have now turned our consideration to South America.”
“We have now a pipeline of takeover tasks and concrete takeover tasks are presently beneath method,” he added.
He declined to say which international locations in South America could possibly be concerned.
Nordzucker can be contemplating enlargement in non-sugar sectors together with in meals substances and animal feed substances and takeovers on this sector are additionally attainable, he mentioned.
No additional closures of sugar manufacturing capability in Europe are presently deliberate.
Nordzucker has not too long ago decreased sugar processing capability in Finland and Slovakia.
Annual Efficiency
Nordzucker posted an annual working loss and mentioned it anticipated weak European Union sugar markets would additionally result in losses in its new fiscal 12 months.
Unlisted Nordzucker posted a €226 million ($262.50 million) working loss for its 2025/26 monetary 12 months to end-February, down from a €100 million working revenue within the earlier 12 months.
Group gross sales fell about 15.5% to €2.34 billion largely due to low sugar costs.
“The sugar sector is presently dealing with an especially tough market state of affairs. Two very robust harvests in Europe triggered a transparent oversupply, placing large strain on costs,” Gorissen mentioned on the annual outcomes presentation.
Giant shares within the EU sugar market had been pushed by robust beet harvests and structurally declining sugar consumption, Nordzucker mentioned in an announcement on its monetary outcomes. Falling world sugar costs as a consequence of excessive world manufacturing have intensified the strain.
Nordzucker mentioned it anticipated continued working losses within the “mid double-digit million euro vary” for its new 2026/27 fiscal 12 months adopted by a return to a optimistic Earnings Earlier than Curiosity and Tax in 2027/28.
“Measures already launched, together with effectivity programmes and value reductions, are starting to have an impact however couldn’t absolutely offset the market downturn,” it mentioned.
To rebalance the market, Nordzucker has decreased cultivation areas and expects a greater steadiness between provide and demand to result in a restoration in costs.
Germany’s Südzucker, Europe’s largest sugar maker, mentioned on 21 Could it anticipated the depressed sugar market to proceed in its new fiscal 12 months. Sugar futures hit five-year lows in April on giant world provides.
EU information exhibits common EU white sugar costs fell to €510 a metric ton in March 2026 from €550 in March 2025 and €844 in March 2024.
