Nordzucker Post 4/2024 - 24 October 2024

Navigating with a sense of perspective in challenging times

Dear Readers,

It is no secret that the sugar market is volatile. However, the current situation is special. After the peak prices of recent years, sugar prices are now falling sharply. Expectations of high sugar volumes in the EU and a general consumer reluctance due to inflation have caused sugar prices to fall significantly and faster than expected. We have already actively launched an entire range of measures to counter this low-price phase.

We expect to be able to close the current financial year 2024/25 with a positive result thanks to the good performance in the first half of the year. However, it is also clear that the negative price trend will continue for the time being and impact earnings. Taking all factors into account, a negative result cannot be ruled out for the next financial year 2025/26.

Now, more than ever, it is important to monitor the challenging markets very closely and to respond appropriately as far as we are able. Nordzucker is very solidly positioned and can cope well with low-price phases. We have set the strategic course accordingly and, despite the price downturn, we will continue to pursue our path in terms of sustainability, growth, and excellence consistently but with a sense of proportion.

A sense of proportion means implementing efficiency and cost-saving measures, re-evaluating planned investments and setting priorities. It is essential to reduce costs in all areas, including adjusting beet prices and volume planning to the market situation. However, even in times like these, our partnership with our growers remains our top priority. I am confident that together we will successfully overcome the challenges and ensure that Nordzucker and beet growing remain profitable and attractive despite volatile markets.

Kind regards, Your

Lars Gorissen, CEO