French sugar group Tereos nearly trebled its net profit to €448 million in its 2023/24 financial year, helped by higher sugar prices.
Group sales rose 9% to €7.14 billion in the year to 31 March, with adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) up 15% at €1.13 billion.
"It's mainly the impact of prices, but there is also an impact from volumes, with record production in Brazil," Tereos finance chief Gwenael Elies told a news conference.
The group's net debt, which has been under scrutiny in the bond market, stood at €2.37 billion by 31 March, down from €2.7 billion a year earlier.
EU Sugar Prices
However, a fall in EU sugar prices since late 2023 on expectations of hefty global supplies could weigh on results in the current year, Tereos chief executive Olivier Leducq has warned previously.
He was echoing comments by rivals including Europe's largest sugar maker, Südzucker, and unlisted German producer Nordzucker, which also posted strong results this month.
Tereos, which also produces ethanol, is one of the world's largest sugar makers, thanks to its sugar cane activities in Brazil.
Leducq said in a statement, “Tereos continues to position itself as a leading global player and key partner in its markets in terms of food, energy and health. We are able to achieve this thanks to an in-depth transformation, which now allows us to improve our competitiveness through operational, industrial and sales excellence. [...]
“Encouraged by these results, we are now focused on the future as we take bold and pragmatic steps to continue to develop new growth drivers.”
News by Reuters, additional reporting by ESM.
