Sudzucker AG (subsidiary issuer): Too early to get confident

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Sudzucker AG (subsidiary issuer): Too early to get confident

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Sudzucker AG (subsidiary issuer)

Too early to get confident

Credit Analysis

Adding the new issue €31s at Underweight 21 July 2026

We add coverage of Sudzucker’s €31s SUN at Underweight (z+150bps) on the basis of High Grade Credit

relative value. We update our model to reflect the Jul-26 bond issuance and positive 1Q Germany

trading. We think it is too early to call an inflection fundamentally and therefore remain Food Producers

cautious on near-term risk/reward. We have an UW on Sudzucker’s 5.950% NC € ’30 Conor Forde

hybrid (at z+310bps) and its 4.125% € ‘32 SUN (z+115bps). We recommend Buying Research Analyst

Protection on its 5-year CDS (164bps). MLI+44 (UK)20 7996 1054

conor.forde@bofa.com

Decent 1Q and easy comps to support levels near-term

We think the positive tone from 1Q trading will support levels near term. These include a

ROCE: Return on Capital Employed‘slight’ upgrade to FY 26/27 top-line guidance with Sudzucker expecting group revenues

(company-defined)between €8.1bn and €8.5bn (prev. €8.0bn to €8.4bn) and a ‘significant’ increase in ROCE

(we forecast a c. +1ppt improvement YoY). The lack of upgrade to group adj. EBITDA is SUN: Senior Unsecured Note

noteworthy (the group no longer guides on op. profit), albeit comps are likely to remain

easy in 2Q. EBITDA recovered by >40% in 1Q (to €135mn), showcasing Sudzucker’s mn t: million tonnes

operating leverage (6.6% margin, +2ppt. YoY). Furthermore, while the core Sugar

EC: European Commissionsegment is likely to remain volatile, Sudzucker’s remaining business (60-70% of

revenues), is holding up well in our view (despite limited visibility). This is particularly FFO: Funds From Operations (S&P-