News and views

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20/11/2024
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Tereos

Against a backdrop of sugar falling prices, Tereos is maintaining its performance

In the first half of Tereos' financial year (April 2024 – September 2024), revenues amounted to €3,226 million, down 11% compared to H1 23/24. This is explained by a drop in prices in Europe for sweeteners and for starch products compared to the same period in the previous year – a year when results reached record levels. Revenues for the Sugar and Renewable Europe division amounted to €1,230 million in H1 24/25, down 5% at current exchange rates from €1,298 million in H1 23/24. The division’s adjusted EBITDA reached €193 million in H1 24/25, up 18% at current exchange rates from €164 million in H1 23/24. The division’s recurring EBIT was €152 million in H1 24/25, versus €127 million in H1 23/24. The annual B2B sugar contracting campaign for 2024/25 in Europe was concluded at an average price close to €530 per tonne. The negotiated prices followed a downwards trend during the contracting period (July–October), going from around €700 to around €450 per tonne and ending the period at a level close to export parity. The significant drop in the average price compared to the previous campaign (€860 per tonne) can be explained by the high level of imports, particularly from Ukraine, and by the sharp increase in beet areas in Europe for the 2024/25 campaign. The situation could change for next year, with announcements by several European producers pointing to a potential decrease in beet areas.

5/9/2024
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Associated British Foods

ABF Sugar performance "mixed" - ABF trading update for Q2 2024

The performance of the ABF Sugar business has been mixed, according to an update on trading during the second half of the financial year which will end 14 September 2024. "Overall, we expect Sugar to deliver adjusted operating profit of approximately £200m, which is still strongly ahead of last year but, due to a reduction in European sugar pricing, lower than previously anticipated. Europe was challenging overall in H2. Production levels have been strong, benefiting from the return to a more typical sugar beet crop in the UK. However, we have seen sharper than expected falls in UK and European sugar pricing due to increased supply in the market. As a result, both of our European Sugar businesses have experienced a negative impact to sales and profitability in Q4. On a constant currency basis, our overall African sugar business has grown well in H2. We have had a strong performance in Zambia and South Africa, whereas in Malawi and Tanzania, high rainfall has impacted sugar cane yields and production this year. In Tanzania, this has led to unexpectedly high volumes of sugar imports and lower prices. On an actual currency basis, our African sales are expected to decline in H2 due to the impact of foreign exchange translation. The operational performance of Vivergo, our bioethanol plant in the UK, has continued to strengthen in H2 albeit the margin has continued to be mixed during the period.