Published by Uma Rajagopal
Posted on November 20, 2024
2 min readLast updated: January 28, 2026
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By Sybille de La Hamaide
PARIS (Reuters) – French group Tereos, one of the world’s largest sugar makers, on Wednesday reported an 18% drop in its first-half net profit, pressured by a fall in sugar and sweeteners prices, and warned of a further decline in the second part of its fiscal year.
The group’s net profit fell to 196 million euros in the six months to Sept. 30, while sales dropped 11% to 3.2 billion euros ($3.4 billion), Tereos said in a statement.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) shed 15% to 506 million euros.
“The results were impacted by the drop in sales prices on the European markets, particularly in the starch and sweeteners segments, compared to the same period in 23/24,” it said.
The significant drop in recently contracted sales prices for sugar in Europe and liquid sweeteners compared to the previous year would have a negative impact on the group’s second-half results, Tereos said.
Tereos’ results were in line with Europe’s largest sugar producer Suedzucker, which also reported a slump in H1 results and flagged lower third-quarter earnings.
Sugar prices in Europe slid to around 450 euros per ton from around 700 euros during the contracting period (July–October) and 860 euros in the previous campaign, pressured by large imports, mainly from Ukraine, and a sharp increase in sugar beet areas in Europe this season, Tereos said.
The situation could change next year, with several European producers pointing to a potential decrease in the sugar beet area, it said.
The impact of large fires in Brazil that hit 6% of Tereos’ sugar cane area in August had a limited impact as some of the burnt cane has been harvested, Tereos, which had large activities in the region, also said.
The group’s net debt, which has been under scrutiny in the bond market, stood at 2.0 billion euros, down from 2.4 billion euros on March 31, it said.
($1 = 0.9446 euros)
(Reporting by Sybille de La Hamaide; Editing by Jan Harvey)
Net profit is the amount of money a company earns after all expenses, taxes, and costs have been deducted from total revenue. It is a key indicator of a company's profitability.
Sweeteners are substances used to add sweetness to food and beverages. They can be natural, like sugar, or artificial, like aspartame, and are often used to enhance flavor without adding calories.
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's overall financial performance and profitability, excluding non-operational expenses.
Sugar prices refer to the market value of sugar, which can fluctuate based on supply and demand dynamics, production levels, and global market conditions.
Net debt is a financial metric that indicates a company's total debt minus its cash and cash equivalents. It provides insight into the company's overall financial leverage.
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