(AFP / FRANCOIS NASCIMBENI)
The sugar group Tereos, number two in the world, posted a decline in turnover and results in the first half of its 2024-25 financial year, which it explains in particular by the decline in prices in Europe.
Over the first six months of its staggered financial year (from April 2024 to the end of March 2025), the group achieved a turnover of 3.23 billion euros, down 11% compared to the previous year. , and its net profit decreased by 18% to 196 million euros, according to a press release published on Wednesday.
A drop which is explained in particular by “a drop in sales prices on European markets” in the sweetening product and starchy product segments (starch-based) compared to the same period of the previous year, marked “by a record level of results”, recalls the cooperative group, notably owner of the Béghin Say brand.
This drop “will have a negative impact on the results of the second half” of the 2024/25 financial year, warns the group.
However, he says he is confident, thanks to the “efforts undertaken since 2021” to “strengthen its fundamentals and its financial solidity”, which result for example in a reduction in its structural debt, to 981 million euros at the end of September, reduced by 166 million euros compared to twelve months previously.
The sugar and renewables division in Europe, which historically carries the group’s turnover, saw its sales decline by 5% in six months, to 1.2 billion euros.
In question, the “significant” drop in the average price of sugar per tonne, from 860 euros last year to between 700 and 450 euros between July and October, which “is explained by the high level of imports, in particular those coming from Ukraine, and by the very significant increase in beet surfaces in Europe for the 2024/25 campaign”, according to the group.
“The situation may change for next year, with a potential drop in beet areas as announced by several European producers,” adds Tereos.
Internationally, the results, which are up, “are mainly driven by an increase in the effective selling price of sugar”. The group estimates that the fires in Brazil, which affected 6% of sugar cane areas, will have a limited impact on production, as the burned cane has been able to be harvested. A volume “close to last year’s record level” is expected in Brazil.
The starch, sweeteners and renewable products division posted a 29% drop in turnover to 928 million euros, notably due to a 10% drop in volumes over the last six months.
