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 strong returns from its business starch, but warned that its debt could increase next year.
Tereos reported adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for the year ended March 31, up 46%, at constant exchange rates, at 682 million euros, reaching EBITDA target of 600-700 million euros six months ahead of schedule.
The cooperative group has, however, been rocked by repeated management changes over the past two years, including the ousting of two managing directors, and a high level of debt that has been central to the new management’s strategy.
The sale of certain assets, including its units in China, Mozambique and the withdrawal of its malt activities, allowed 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 it has maintained its debt target of less than 2 billion euros in 2024, the group has warned that its level could increase in the financial year 2022/23 due to the sharp increase in the costs of raw materials. and energy.
(Report Sybille de La Hamaide, Olivier Sorgho and Juliette Portala, French version Augustin Turpin, edited by Kate Entringer)