Tereos profits drop as low dollar and sugar prices weigh

France's Tereos reported Monday a sharp decline in quarterly profits, citing low sugar prices as continuing to press its core business. A weaker dollar also exacerbated the import competition for Tereos' ethanol activities.

Tereos, a world-leading sugar producer, warned that the decline in prices in its 2024/25 fiscal year, which ended on March 31, would continue to be a drag for 2025/26.

The farmer-owned cooperative reported results for the first quarter of April-June, stating that adjusted earnings before taxes, depreciation, and amortization (EBITDA), were 56 million euro ($64.82 millions), down 79% compared to the previous period.

The company reported a net loss in the amount of 65 million Euros, compared to a net profit of 108 millions Euros a year earlier.

Tereos stated that lower contracted sales prices in Europe, since Q3 24/25 in sugar and Q4 24/25 in starch & sweetness, had an adverse effect on the Group's First Quarter. This was compounded with lower yields at the beginning of harvest in Brazil.

The group reiterated its view that lower sugar production in Europe is expected to help prices recover in the next season.

The company also stated that its first quarter is usually its weakest period.

The group said that a drop in the dollar, linked to broader geopolitical factors, had also affected the group, by lowering the prices of sugar exports, and biofuel ethanol.

Tereos said that the weaker dollar made corn-based ethanol imports from the United States more competitive. The flow of ethanol into Europe was already at record levels. ($1 = 0.8639 euro) (Reporting and editing by Kirby Donovan; Gus Trompiz)

(source: Reuters)