PARIS (Reuters) – French sugar group Tereos vowed to press on with plans to cut its debts and improve its results, as it posted an annual net loss which reflected the impact of asset depreciations
Tereos, which is the world’s second largest sugar maker in terms of volumes, reported a net loss of 133 million euros ($162 million) in the year to March 31, against a profit of 24 million a year earlier, as it was hit by 76 million euros worth of asset depreciations.
Tereos nevertheless added that adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for 2020/21 rose 11% at 465 million euros.
Annual sales stood at 4.32 billion, up 1% at constant exchange rates, while net debt at the end of March stood at 2.53 billion euros, down 24 million from a year earlier.
Earlier this month, sources close to the matter told Reuters that Tereos was seeking to exit its ventures in China and Romania as part of a wider move by the new management to lighten the group’s heavy debt and boost profitability.
Tereos said its new strategic plan would focus on creating value, making business activities profitable and controlling debt.
“Tereos is turning the page on its former strategy of volume and external growth. The 2020/21 results show that the group has not yet managed to fully adapt to the post-quota period. There is a lot of room for improvement,” said Tereos’ management board chairman Philippe de Raynal.
Tereos hoped its strategic plan would achieve by 2024 an EBIT (earnings before interest and tax) margin of 5%, recurring generation of positive free cash flow, and a net debt below 2 billion euros.
($1 = 0.8189 euros)
Reporting by Sybille de La Hamaide; Editing by Sudip Kar-Gupta
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