Sugar group Tereos reports leap in core profit as prices rise
PARIS (Reuters) – French sugar and ethanol group Tereos on Thursday posted a strong rise in sales and earnings for its 2022/23 financial year, supported by high prices across its markets, though net debt continued to rise.
The group’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the year to March 31 jumped by 62% at constant exchange rates to 1.1 billion euros ($1.21 billion), helped by tight global supplies that drove sugar futures to their highest level in 11-1/2 years in April.
“This improvement in results was driven by the combined impact of market momentum and the increase in prices across all segments (sugar, alcohol, ethanol, sweeteners and electricity), the good execution of hedging strategies and strict cost control,” a Tereos statement said.
These factors helped the group contend with significant increases to raw material and energy prices, it added.
However, net profit fell to 161 million euros from 172 million the previous year, hit by asset depreciation of 252 million euros while group debt rose to 2.7 billion euros from 2.4 billion euros because of a sharp increase in working capital.
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($1 = 0.9084 euros)
(Reporting by Sybille de La Hamaide; Editing by David Goodman)
