Tereos posts record loss, sees 'difficult' 2026/27 (updated)

Suedzucker AG

28/05/2026 10:38

Recasts, adds quote from director general
By Sybille de La Hamaide

    PARIS, May 28 (Reuters) - French sugar and ethanol maker Tereos expects earnings to fall further in 2026/27 as weak sugar markets, cost pressures and global uncertainty continue to weigh on its operations, it said on Thursday after posting a record annual loss for 2025/26.
Tereos posted a net loss of €590 million ($686 million) in 2025/26, down from a €131 million profit in 2024/25, hit by lower prices, reduced cane volumes in Brazil, currency effects and a €499 million non-cash impairment.
The cooperative group expects market conditions to remain difficult across all its activities.
To navigate the downturn, it plans to sharply reduce capital expenditure, strengthen cost-cutting measures and continue divesting non-core assets, it said.
The group forecast core earnings (EBITDA) of €275 million to €350 million for this financial year, down from €416 million in 2025/26 when revenue declined to €5.13 billion from €5.93 billion.
"2026/27 will be difficult. As opposed to 2022 and the war in Ukraine, it will be more complicated to pass the rise in costs to our clients as oversupply is weighing on prices," Director General Olivier Leducq told Reuters on the sidelines of the results presentation.

        Suedzucker SZUG.DE, Europe's largest sugar producer, last week also said it expected the depressed sugar market to continue in its 2026/27 fiscal year.
Sugar futures fell to five-year lows in April on ample global supplies and have dropped about 40% in Europe over the past two years.
Tereos expects its net debt to remain broadly stable between €2.2 billion and €2.4 billion in 2026/27, versus €2.26 billion at March 31 and €2.22 billion a year earlier.
"A gradual improvement in market conditions could occur from 2027 onwards as prices recover," Leducq said.
Leverage jumped to 5.4 times from 2.8 times in 2025/26, though Tereos said this was below a previously expected peak of 6 times. The group expects leverage to fall to around 3 times in 2028.
($1 = 0.8598 euros)

 (Reporting by Sybille de La Hamaide. Editing by Sterphen Coates and Mark Potter)
 ((Sybille.deLaHamaide@thomsonreuters.com; +336 8774 4148;))