Tereos, a French sugar and ethanol group, has reported a strong increase in sales and earnings for the 2022/23 financial year, despite a rise in net debt.
The company's adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 62% at constant exchange rates to €1.1 billion ($1.21 billion), supported by high prices across all segments, including sugar, alcohol, ethanol, sweeteners and electricity. Tereos also benefited from the tight global supplies that drove sugar futures to their highest level in over a decade in April.
The company attributed its success to the good execution of its hedging strategies, strict cost control, and market momentum. However, the company's net profit fell to €161 million from €172 million in the previous year, due to asset depreciation of €252 million. Meanwhile, group debt increased to €2.7 billion from €2.4 billion, driven by a sharp rise in working capital.
