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 31 March jumped by 62% at constant exchange rates to €1.1 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.
'Significant Increases'
These factors helped the group contend with significant increases to raw material and energy prices, it added.
However, net profit fell to €161 million from €172 million the previous year, hit by asset depreciation of €252 million while group debt rose to €2.7 billion from €2.4 billion because of a sharp increase in working capital.
Northern France Factory
Tereos on 8 March announced a reorganisation, including the closing of its sugar activities in a factory in northern France that would lead to 123 job cuts, as it faces a sharp drop in sugar beet output.
The company, which said last year it did not rule out closing a sugar factory in France, also aims to close its distillery in Morains and is looking for a buyer for its potato starch plant in Haussimont, both in eastern France.
Read More: Tereos To Close Sugar Business At Northern France Factory: Reports
