Tereos Reports Revenues of EUR4.4 billion for 2011

During FY 2010/11, the Tereos Group recorded solid results in the context of shortages experienced by the global sugar market, pressure on the ethanol market, an increase in global cereals prices and the completion of the European sugar sector’s consolidation.

Feb 2 2012 ---Tereos has released its financial results for the 2010/11 period. They show a sharp rise in many key areas, they claim that the success was due to their ‘targeted investment programme to accelerate growth.’

The key figures from Tereos’ results are:

• Increase in revenues to €4.4 billion (+25%)

• Record adjusted EBITDA of €752 million (+26%)

• Net income of €237 million (+57%)

• €85 million in price complements and supplements paid to cooperative members

• Continued deleveraging with net debt reduced to 2.7 times adjusted EBITDA

• Sugar beet division: a record campaign in Europe in 2011/12 in a favorable market

• Starch division: two new raw materials (manioc and potatoes) and two new markets (Brazil and China)

• Sugarcane division: a decrease in agricultural yields in Brazil in a context of high sugar prices; a strong campaign in the Indian Ocean region

During FY 2010/11, the Tereos Group recorded solid results in the context of shortages experienced by the global sugar market, pressure on the ethanol market, an increase in global cereals prices and the completion of the European sugar sector’s consolidation.

Philippe Duval, Chairman the Executive Board, said: “Tereos has achieved excellent results against the backdrop of rising sugar, ethanol and cereal prices. Revenues grew by 25% and net income was 57% higher at €237 million. In addition, debt ratio also improved. By leveraging on the agricultural and industrial know-how it has established in the sugar beet business, Tereos aims to continue to optimize agricultural yields and to improve the industrial performance of all its plants.

“We have given priority to the expansion of our starch businesses in China and Brazil, and with the support of our main partners (Wilmar, Petrobras), we aim to capture growth in these regions.” Thierry Lecomte, Chairman of the Supervisory Board, added: “The sugar beet campaign in Europe is excellent, with record yields of 15 tonnes of sugar per hectare in France. Building on the continuous growth in profitability from its processing activities, the Tereos Group continues to offer added value outlets to its cooperative members. The Tereos Group is investing to maintain the competitiveness of European sugar beet production in order to reduce the cost differential between beet sugar and cane sugar. With this in mind, it is essential that quotas are maintained in Europe until 2020.”