Tereos posts record annual profit on strong sugar prices

Suedzucker AG

29/05/2024 10:15

PARIS, May 29 (Reuters) - French sugar group Tereos
nearly trebled net profit to 448 million euros ($487 million) in
its 2023/24 financial year, it said on Wednesday, helped by
higher sugar prices.
    Group sales rose 9% to 7.14 billion euros in the year to
March 31, with adjusted earnings before interest, tax,
depreciation and amortisation (EBITDA) up 15% at 1.13 billion
euros. 
    "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 euros by March 31, down from
2.7 billion euros a year earlier.    
    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, Suedzucker  SZUG.DE , 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.
($1 = 0.9199 euros)

 (Reporting by Sybille de La Hamaide
Editing by David Holmes and David Goodman)
 ((Sybille.deLaHamaide@thomsonreuters.com; +336 8774 4148;))