Sudzucker reports sharp drop in Q2 earnings amid higher costs

German food company Sudzucker reported a steep drop in its second-quarter operating profit on Thursday, citing higher costs and lower prices.

Despite the decline, Sudzucker maintained its annual forecast.

For the three-month period to August 31, the company's operating profit fell to €131 million ($143 million), down sharply from €308 million in the same period last year.

Operating profit also dropped to €114 million from €310 million. Operating earnings before interest, taxes, depreciation and amortization (EBITDA) decreased significantly, reaching €190 million compared to last year's €383 million.

Total investments rose to €155 million, up from €120 million in 2023, while revenue edged slightly lower to €2.541 billion from €2.560 billion.

Looking ahead, for the full year, Sudzucker still expects an operating result between €175 million and €275 million, with EBITDA between €550 million and €650 million, on projected revenue of €9.5 billion to €9.9 billion.