Tereos profit plunges 95% as global sugar prices hit multi-year lows 

FRANCE – Tereos, one of the world’s largest sugar producers, has reported a sharp decline in profitability for the first half of its 2025/26 financial year, as global sugar prices continue to fall to multi-year lows due to abundant supplies.  

The group posted a 95% drop in recurring operating profit, which fell to €16 million (US$18.45M) between April and September, while revenue decreased 19% to €2.62 billion (US$3.02B) at current exchange rates. 

The downturn extended to adjusted EBITDA, which declined 66% to €173 million. The company had previously cautioned of a challenging start to the year following its May earnings report, citing continued price weakness across major markets. 

European sugar prices reached a three-year low in September, driven by strong beet yields, high sucrose content, and a broader downturn in global sugar markets. The decline also weighed heavily on Tereos’ starch division, which experienced significant pressure from sharply reduced prices. 

Raw and white sugar futures dropped to a five-year low earlier this month on expectations of a substantial global surplus in the 2025/26 season. The difficult market conditions affected the wider sugar industry, with sector leader Südzucker also reporting major declines. 

Tereos recorded a net loss of €572 million (US$659.67M) for the period, including a €499 million (US$575.52M) goodwill impairment largely related to its European sugar operations. The company also noted that a weaker U.S. dollar hurt export competitiveness while supporting ethanol and alcohol imports, further straining performance. 

The group’s Brazilian operations saw revenue fall 28%, as adverse weather reduced sugarcane volumes and sucrose levels, overshadowing operational efficiencies. 

With European sugar prices and currency trends expected to remain weak in the second half, Tereos has raised its debt leverage forecast for the year to 6.0x, up from 5.0x. As of September 30, the ratio stood at 4.5x, with net debt rising to €2.1 billion (US$2.42B) from €2.0 billion (US$2.31B) a year earlier. 

Company launches new fibre ingredient 

Despite the challenging market backdrop, Tereos has expanded its portfolio with the launch of Actifiber, a corn-based soluble fibre ingredient designed to help manufacturers meet rising consumer demand for healthier products. 

Produced from non-GMO corn starch at the company’s Marckolsheim facility in France, Actifiber enables brands to boost fibre content while reducing calories. 

According to Tereos, the ingredient’s neutral taste and clarity allow for seamless integration into a variety of applications, including beverages, baked goods, cereals, confectionery, chocolate, dairy, and vegan products.  

The company says the new launch supports its customers’ efforts to develop nutritionally balanced offerings without compromising taste or texture. 

Marion Hoff, Tereos’ sales director for Europe, said the ingredient aims to help accelerate the shift toward healthier and more natural eating habits by providing practical solutions aligned with consumer expectations. 

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