Tereos records record loss of US$686 million

Tereos, a French sugar and ethanol manufacturer, ended the 2025/26 cycle with the biggest loss in its history: US$686 million (€590 million) and reversing a profit of US$152 million (€131 million) recorded in the previous year. The company projects a further drop in results for the current financial year.

The announcement was made this Thursday (27). The negative result was driven by the decline in sugar prices, a reduction in the volume of sugarcane processed at the company's units in Brazil, exchange rate pressure and an accounting adjustment for the devaluation of assets of US$580 million (€499 million). No impact on cash but with weight on the final balance.

Tereos' total revenue fell from US$6.9 billion (€5.93 billion) to US$5.97 billion (€5.13 billion) in the period.

For 2026/27, the group projects EBITDA between US$319 million and US$407 million (€275 million and €350 million). Below the US$484 million (€416 million) recorded in the previous cycle.

Tereos currently operates in Brazil with five sugarcane plants. Results in the country are expected to register a significant drop in the next cycle, reflecting the decline in sugar prices in the global market over the last year.

To get through the downturn, the cooperative announced a cut in capital expenditure (CapEx), intensification of cost reduction measures and the continuation of the sale of non-strategic assets.

In February, Tereos sold the unit located in Pitangueiras, in the interior of São Paulo. The unit operated below installed capacity after fires in 2024 affected sugar cane crops.

Global sugar market

Pressured by the increase in global supply, sugar prices reached their lowest levels in the last 5 years. The drop was accentuated again this week after Unica (Union of the Sugarcane and Bioenergy Industry) reported that sugar production in the Center-South of Brazil, in this 2026/27 harvest, rose 55.3% compared to the previous harvest: 2.475 million tons.

The increase was driven by the quality of sugarcane. Sucrose yield per ton 5.4% compared to the same period last year.

Source: CNN