Suedzucker AG: Slower pace of sugar recovery but risk/reward still attractive

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Suedzucker AG: Slower pace of sugar recovery but risk/reward still attractive

ol price tailwind with stronger cost leverage. 52 Week range EUR 13.57-8.92

Sugar risk/reward improving but pace of recovery pushed out slightly: The stronger ethanol

outlook is also supporting the global sugar balance. In Brazil and Thailand, sugar cane is a

flexible feedstock, and higher ethanol economics incentivise greater diversion away from white

sugar production. As a result, the global supply outlook could tighten on greater ethanol

demand and world sugar prices have rebounded from February lows. SZU, as an entirely EU

based sugar producer, is not an immediate beneficiary given protected EU sugar markets. EU

sugar prices are typically contracted on an October–September marketing year basis, with Source: IDC Link to Barclays Live for interactive charting

negotiations in July–September. This effectively locks in a challenging price environment

through H1 FY27 (to Sept 2026), during which we still expect the sugar division to remain heavily

loss-making, broadly in line with company guidance. However, the forward-looking backdrop is European Consumer Staples

Alex Sloaneimproving. Higher world prices, combined with continued reductions in EU beet acreage (-20%

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over the past two years), raise the probability of a more constructive pricing outcome in

alexander.sloane@barclays.com

negotiations from July 2026 for the following marketing year particularly if yields are pressured Barclays, UK

by drier European weather over the summer. Offseting this potential tailwind, we would note

Warren Ackerman

+44 (0)20 3134 1903

Barclays Capital Inc. and/or one of its affiliates does and seeks to do business with companies warren.ackerman@barclays.com

covered in its research reports.