Tereos reduced its earnings by 29%
French cooperative group Tereos, one of the world’s largest sugar makers, reported a fall in quarterly earnings as historically low prices outweighed stronger volumes following the liberalisation of the European sugar market.
It is reported by Reuters.
Tereos’ adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in the first quarter of its 2018/19 financial year came to 84 million euros ($96 million), down 29 percent from 118 million in the year-earlier period.
Sales in the April-June quarter fell 5,2% — to 1,059 billion euros as a 22% drop in average sugar prices outweighed a 12% increase in Tereos’ sugar volumes.
Tereos did not disclose net profit figures.
European sugar firms have been hit hard by a plunge in international prices just after ramping up capacity to benefit from the abolition of European Union sugar quotas a year ago.