Press Release

Annual Results 2019/2020

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Tereos: strong growth of results in all divisions
  • Tereos consolidates its position as the 2nd largest sugar group in the world, with 4.475 Mt of sugar (source F.O. LICHT). The Group is experiencing growth across all its activities: Sugar: + 4%; Starch: + 4% to 4.1 Mt grinding; Alcohol: + 7% at 1.6 Mm3.
  • Strong increase in Group EBITDA to €420 million (+ 53%). Increase in operating results across all activities. 53% of the Group’s EBITDA is generated by the International Sugar division (€ 222 million, + 32%), 23% by its historic Sugar Europe activity (€95 million, + 157%) and 22% by its Starch and Sweeteners division (€93 million, + 7%).
  • This strong growth reflects, across all activities, a very good level of operational performance, as well as good commercial and agricultural results, leading to record an overall activity growth. The Ambitions 2022 transformation program has generated €75 million to date (Sugar Europe: €33 million, Sugar International: €26 million, Starch and Sweeteners: €16 million) of which €60 million over the period.
  • Sugar Europe: strong uplift in second half results. The positive momentum in sales (27% growth in Tereos’ market share in sugar in Europe since the end of the quotas) and in agriculture (22% growth in sugar beet acreage in France since the end of the quotas) helped to capture the full benefit of the €58 increase in the sugar market in Europe in the second half. Tereos’ beet acreage will increase by 4% in Europe for the 2020/21 campaign. Tereos now processes ​​50% of beet volume in France.
  • Sugar International: EBITDA increase of 32% (+ 36% at constant exchange rates), supported by growth in cane volumes of 8% and 16% in sales of green electricity in Brazil, as well as a recovery in world sugar prices at the end of the year. Cane volumes for the 2020/21 campaign which started in March are expected to increase again by more than 6%.
  • Starch and Sweeteners: EBITDA increase of 7%, supported by the good results of the European activity transformation plan and the growth of our results in Indonesia. In Europe, this allowed a 2% turnover growth, despite an adverse market situation for Sweeteners (fall in prices in line with sugar and decrease in volumes). Tereos consolidates its position as world number 2 in wheat protein, which now represents more than 10% of the division’s sales. In Indonesia, Tereos has become the market leader in starch. Tereos Indonesia recorded turnover growth of 15% in its sales and in its EBITDA (€8 million).
  • The end of the fiscal year was marked by the sanitary crisis caused by the Covid-19. As leading company in alcohol for pharma industry in France and in Europe, for sugar in food industry and retail, Tereos has remained fully engaged to ensure the safety of its employees, serve its customers and respond to booming demand for pharmaceutical alcohol and packed sugar. Thanks to all its Employees worldwide and to its Cooperative Associates, the Group delivered successful achievements which allowed to:

– ensure safety for all its employees in the 48 industrial sites around the world

– maintain business continuity across all activities to serve customers throughout the period

– produce additional alcohol for pharmaceutical sector (+ 60% in France during confinement) as well as packed sugar (+ 48% in France during confinement) to meet the demand of consumers in the need for these products

– demonstrate a strong sense of citizenship in all of our communities worldwide. In France, Tereos employees implemented new production lines of hydroalcoholic solution on 6 of the French plants, and thus produced 200,000 liters donated to healthcare staff via the Regional Health Agencies of Grand-Est, Centre Val-de-Loire, Hauts-de-France and Île-de-France regions of France.

  • On July 29, 2019, the Group closed the transaction relating to its evolving partnership with ETEA, which resulted in reducing the Group’s debt by €215 million and strengthening the Group’s alcohol/ethanol production network in Europe with the integration of the Nesle distillery (France) into its facilities.