Tereos posts solid results but warns of rising debt


The Tereos logo in Chevrières, France, March 20, 2019. REUTERS / Benoit Tessier

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June 9 (Reuters) – France’s Tereos, the world’s second-largest sugar producer by volume, posted a sharp rise in annual profits on Thursday, helped by high sugar and ethanol prices and good returns from its starch business, but warned that its debt could rise next year.

Tereos said adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for the year ending March 31 increased by 46% at constant exchange rates to €682 million (€730.63 million). dollars), reaching its target of 600 to 700 million euros in EBITDA six months earlier. provided that.

The cooperative group has, however, been shaken by repeated management changes over the past two years, including the ousting of two general managers, and a high level of debt which has been at the center of the new management’s strategy. Read more

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The sale of certain assets, including its units in China, Mozambique and the withdrawal of its malt activities, enabled it to post a net profit of 172 million euros, compared to a loss of 133 million in 2020/21 and to reduce its debt to 2.39 billion, against 2.53 billion a year earlier.

While maintaining its target of less than 2 billion euros in debt by 2024, the group warned that its level could increase in the financial year 2022/23 due to the sharp rise in raw materials. and energy costs.

($1 = 0.9334 euros)

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Reporting by Sybille de La Hamaide, Olivier Sorgho and Juliette Portala, editing by Tassilo Hummel and Elaine Hardcastle

Our standards: The Thomson Reuters Trust Principles.

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