The Group's operational performance is also increasing by 20%, with adjusted EBITDA of €904 million. The growth in results over the last few years have been achieved thanks to the long-term strategy mapped out by the cooperative group, which has in particular carried out a major industrial restructuring following the 2006 Reform, while developing a successful international expansion strategy since 1992 to become the world's fourth largest sugar group.
The Group is taking advantage of this good performance to continue its investment policy and further strengthen its competitiveness in Europe and internationally.
Alexis Duval, Tereos' Chief Executive Officer: “Tereos has achieved outstanding results, with revenues climbing 14% and EBITDA 20%. This performance reflects a positive economic environment over the past year, as well as the benefits of our long-term strategy marked by a major industrial restructuring, our successful international expansion and the development of our product portfolio. Our good performance enables us to continue rolling out our investment plan with a view to further strengthen our competitiveness and consolidate our positions”.
Thierry Lecomte, Chairman of Tereos' Supervisory Board: “The 2011/12 sugar beet campaign was outstanding, with yields of 96 tonnes per hectare in France (16% sugar content). The Group's sustained performance over the last few years enables the group to offer sustainable and profitable outlets for the cooperative growers, which is Tereos’ mission as a cooperative. Looking ahead to the sugar regime reform, we are going to further strengthen our competitiveness in sugar beet in France through a major energy savings investment plan. Tereos’ key developments and strategy are guided by strong cooperative values: long-term commitment, solidarity and fairness amongst cooperative growers”.
Tereos has reported that in a context marked by the economic crisis, world sugar consumption continues to grow at a rate of ca. 2% annually. Today, 80% of world sugar production comes from sugar cane, while Brazil on its own accounts for 50% of global exports. The European market, in deficit since the 2006 reform, is now largely dependent on imports. FY 2011/12 was marked by the first downturn in Brazilian sugar cane production for 10 years, pushing world prices up to all-time highs at the start of the financial year.
In the cereals processing sector, the market for starch products also shows a rising level of global consumption, driven by emerging countries. It is also marked by volatile and strongly rising cereals rises. Lastly, the ethanol market has seen its growth stall for the past two years, faced with a less favorable regulatory framework in the US and rising cereal prices. With 9 out of 10 new vehicles equipped with flexfuel engines, Brazil still represents a promising market for ethanol.
Tereos is developing its product portfolio in France by launching the world's first beet vinasse-based betaine production unit with Dupont. Tereos has acquired the Haussimont potato starch unit, enabling it to supplement its commodities portfolio to include potato-based starch. The Lillebonne site has embarked on its conversion to cover food products with the launch of gluten production. Tereos is also continuing its international expansion. In Europe, the Group has further strengthened its position with the acquisition of the Kojetin distillery in the Czech Republic.
Tereos announced the acquisition of the Ludus sugar plant in Romania in October 2012. From this development base in Central Europe, Tereos will be able to support its industrial customers on a market where sugar consumption is expected to increase over the coming years. In China, Tereos, in partnership with Wilmar, Asia's leading agrifood group, has launched work to build a first wheat starch facility in Dongguan, in Southern China. In Brazil, the construction of a corn starch unit also started in Palmital, in the Center-South region.
To further strengthen the competitiveness of its industrial units, Tereos has launched in France a program to reduce energy costs. The largest investment will be made in Connantre, but all the French sugar facilities will benefit from this investment plan. During the period, a biogas production unit - based on vinasse methanation - was launched at the Artenay sugar plant, aiming in time to supply 25% of the site's energy consumption and reduce CO2 emissions by 12,500 tons.
In Brazil, the Group has also started rolling out a major investment program that will run through to 2015/16, within which the first phase of investments for bagasse-based electricity cogeneration has just been inaugurated. In addition, in the field of agriculture, the group planted approximately 60,000 hectares, of which 20,000 of new surfaces.
On 1 October 2012, Alexis Duval became the Group's Chief Executive Officer. Olivier Casanova, who joined the group on 1st September 2012, has taken over from him as Chief Financial Officer and joined the Executive Committee. Jacyr Costa, in charge of the Brazilian subsidiary since 2007, has also joined the Executive Committee to head up the Group's sugar cane division. OUTLOOK FOR 2012/13 SUGAR BEET. The 2012/2013 sugar beet campaign which has just ended in France shows yields in line with the average for the past five years, at 84 tonnes / hectares (16% sugar content), but below the record levels from the previous campaign.
Elsewhere, the Czech Republic is seeing very high yields, similar to those from 2011/12, at 79 tonnes / hectares. In total 17.1 million tonnes of sugar beet were processed during the 2012/13 campaign. SUGAR CANE. In Brazil, the Group's latest sugar cane harvest shows a significant growth in volumes processed, up 12% to 18.2 million tonnes. With prospects of a further growth of more than 10% for the next campaign, due to start in April 2013, the volumes processed over the FY 2012/13 will show a significant growth.
Overall, the volumes of sugar cane processed in the Indian Ocean and Africa region reveal a good level of stability. CEREALS. Cereal prices are expected to remain volatile and at high levels. In the Lillebonne plant, ramp-up of the gluten production and start-up of the glucose production unit. The volume of cereals processed by the division should show a slight increase, from 3.8 to 3.9 million tonnes.
