Tereos, the largest sugar producer in France and fifth largest in the world, has reported a ‘sound performance in an environment less favourable than in 2012/ 13’. The company reported a net profit of 176m Euros for the last year, with volume growth in sugarbeet, cereals and also sugarcane.
Alexis Duval, Chief Executive Officer of Tereos, declared: “Despite a less favorable environment after two years of exceptionally high world sugar prices, Tereos is reporting good results: an EBITDA of 691 million euros which is the third best performance in the history of the Group.
“This reflects Tereos’ strong assets to evolve in increasingly open and volatile markets. Our long-term strategy is designed to allow Tereos to remain among the most competitive producers in Europe and to take advantage of major drivers of growth thanks to our increasing international presence. This will enable us to seize opportunities both in our historic markets and in markets of emerging countries.”
Thierry Lecomte, Chairman of the Supervisory Board of Tereos, stressed the following: “Sugarbeet yields for the 2013-2014 campaign were in the low average of the past five years. But above and beyond these results, it is important to highlight long-term trends. Sugarbeet yields have been increasing regularly for years thanks to progresses in agronomy, agricultural practices and genetics.
Tereos has successfully experimented major innovations such as simplified sugarbeet sampling process and a new soil tare incentive system, which will be extended to all plants in the upcoming campaign. These are some of the factors which will be essential for our competitiveness going forward and which will enable us to operate in a more open market and without quotas.”
Highlights from the year include: successful experimentation of a simplified sugarbeet sampling process and a soil tare reduction plan, which will be extended in 2014 to all French sugar production units. Also, the launch of a plan to increase sugarbeet growing areas to enable a lengthening of the duration of the Artenay sugarbeet campaign by 15 days starting in 2014, with the stated objective of a 20% increase nationwide by the year 2017. In addition, the company embarked upon a major phase of the energy savings plan rolled out in 2013 in all French sugar production units aimed at a 15% reduction in energy consumption and a 20% reduction in CO2 emissions by 2016.
Also in the announcement, the company noted its development of the products portfolio of the Lillebonne unit, which expanded its activity to the production of proteins and sweeteners.
In Romania it logged an increase in sugarbeet yields, confirming the agricultural potential for the Ludus unit. It also said that the incorporation of the Haussimont potato starch cooperative will enable Tereos to support further the development of agricultural surfaces.
Innovations from the company include the start-up of the world’s first sugarbeet vinasse methanization unit in Artenay (Loiret) to produce biogas covering 50% of the energy needs of their distilleries, leading to a significant reduction in CO2 emissions. Tereos is strongly involved in Improve, a research platform devoted to promoting plant-based proteins.
In Brazil, 2013 proved to be a record crop for Guarani with bioelectricity production increasing sharply thanks to cogeneration. The new Palmital corn starch unit began operations in May.
In China, in partnership with Wilmar, the number one agro-industrial group in Asia, Tereos acquired a second starch unit, based in Tieling in Northern China. The Dongguan starch unit, located near Canton, will start production in end 2014.
In Indonesia, the leading economy in Southeast Asia, Tereos is entering this market through the acquisition of 50% of Redwood, the country’s sole corn starch plant.
