It is reported by Reuters.

The group's net profit fell to 196 million euros in the six months to Sept. 30, while sales dropped 11% to 3.2 billion euros ($3.4 billion), Tereos said in a statement.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) shed 15% to 506 million euros.

"The results were impacted by the drop in sales prices on the European markets, particularly in the starch and sweeteners segments, compared to the same period in 23/24," it said.

The significant drop in recently contracted sales prices for sugar in Europe and liquid sweeteners compared to the previous year would have a negative impact on the group’s second-half results, Tereos said.

Tereos' results were in line with Europe's largest sugar producer Suedzucker (SZUG.DE), opens new tab, which also reported a slump in H1 results and flagged lower third-quarter earnings.

Sugar prices in Europe slid to around 450 euros per ton from around 700 euros during the contracting period (July–October) and 860 euros in the previous campaign, pressured by large imports, mainly from Ukraine, and a sharp increase in sugar beet areas in Europe this season, Tereos said.

The situation could change next year, with several European producers pointing to a potential decrease in the sugar beet area, it said.

The impact of large fires in Brazil that hit 6% of Tereos' sugar cane area in August had a limited impact as some of the burnt cane has been harvested, Tereos, which had large activities in the region, also said.

The group's net debt, which has been under scrutiny in the bond market, stood at 2.0 billion euros, down from 2.4 billion euros on March 31, it said.