News Sugar
Low sugar price hits French industry hard
Tereos, the largest French sugar producer, has figures for the first half of 2018/2019 published. Between April and September, sales fell by 51% and net profit was no less than €81 million lower.
The turnover of €2,11 billion is 9% lower than in the same period in the 2017/2018 season. EBITDA (net sales) is 51% lower at €143 million, where it was previously €309 million. The profit is badly affected and amounts to a negative result of €91 million, compared to a negative result of €2017 million in the first half of the 2018/10 season.
Dramatic sugar price
The main reason for the dramatic figures is (according to Tereos) the historically low sugar price. It has decreased by 30%. It does expect better results from their activities in Brazil, but approximately 78% of the turnover is generated in Europe. Some growth has been achieved in the field of starch and sweeteners, with an 11% higher turnover. This branch will therefore be further expanded.
Tereos' debt amounted to €30 billion on September 2,33 of this year. The poor numbers and high debts are causing mutiny in the cooperative. The company has invested heavily in sugar production and now has to pay for it. That is why the French are now looking for a party that wants to invest in the company.
Not in the Netherlands
Suiker Unie in the Netherlands is also having a hard time and is expected to close the year with a loss. However, the situation is not comparable to that in France, says chairman Dirk de Lugt in a broadcast of BB TV.
Niels van der Boom
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