French sugar group Tereos sinks deeper into red after price slump
The news sent yields on the co-operative group’s bonds to all-time highs on Tuesday
French sugar group Tereos plunged to a first-half loss of almost €100m, hit by a steep fall in sugar prices, and said it expects to be in the red across its full financial year for the second year running. The news sent yields on the co-operative group’s bonds to all-time highs on Tuesday. World sugar prices have dropped to their lowest in a decade in 2018 amid a surge in supplies, partly driven by more output from the EU after it scrapped export and output quotas in 2017. Tereos, which became the world’s second-largest sugarmaker last season, said it made a €96m loss in the six months to September 30 versus a year-earlier loss of €10m. “The historic fall in European sugar prices will impact Tereos’s results like other large actors of the European industry, so that Tereos will not be able to reach a positive net result,” CFO Olivier Casanova said. That confirmed an outlook given to Reuters last week by the group’s CEO, Alexis Duval. Tereos made a net loss of €18m in the year ended M...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.