PARIS, April 14 (Reuters) – French sugar and ethanol buildr Cristal Union reported a 14% fall in annual revenue on Tuesday and warned that higher energy costs and low-duty imports were putting further strain on European producers already squeezed by rock-bottom prices.
Cristal Union’s revenue fell to 2.28 billion euros ($2.69 billion) in the year to January 31. A 462 million euro impairment charge resulted in a net loss of 442 million euros, compared with a 117 million euro net profit the previous year.
European sugar groups, including Germany’s Suedzucker and France’s Tereos, have also booked impairments owing to plunging sugar prices.
The impairment was primarily attributable to the impact of inflation on operating margins in the sector and has no impact on the group’s cash position or its capacity to seize investment opportunities, Cristal Union CEO Xavier Astolfi informed reporters.
European sugar hit a more than three-year low of 516 euros a metric ton in January, down 8% year on year and 40% over two years, the latest official EU data reveals.
This prompted Cristal Union to favour alcohol and ethanol output during the past year and to tarobtain sugar sales to Mediterranean markets in deficit.
The group declared it believed that sugar prices had bottomed out and expected them to rebound in the coming months owing to further reductions in beet acreage for the coming 2026/27 crop year. The French agriculture minisattempt on Tuesday forecast a 4.6% drop in acreage in France.
Cristal Union expects the cultivated area to fall to its compactest level in 10 years at 1.4 million hectares.
The group expects European sugar prices to rebound to about 600 to 650 euros a ton due to the lower supplies but still far from the high of 856 euros hit in late 2023, as world prices continue to be pressured by ample supplies, Astolfi declared.
($1 = 0.8482 euros)
(Reporting by Sybille de La HamaideEditing by David Goodman and Joe Bavier)
By Sybille de La Hamaide
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