PARIS, Oct 13 (Reuters) - French sugar and ethanol maker Tereos increased its forecast for the 2016/17 financial year on Thursday as it benefits from a sharp rebound in sugar prices.
The group now expects adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) before price complement at between 560 million euros ($627 million) and 585 million euros, up around 30 percent from the 2015/16 financial year, it said in a statement.
The previous outlook announced in June 2016 was for adjusted EBITDA of between 525 and 550 million euros.
“World sugar prices have improved over the past months and in parallel our plan to improve operational performance throughout our activities is going well,” Tereos’ spokesman said.
ICE raw sugar futures rose to 23.90 cents per lb last week, their highest level in more than four years. The price of the sweetener has risen more than 50 percent so far this year.
Tereos, the world’s third-largest sugar maker, posted annual sales of 4.2 billion euros in 2015/16.
The cooperative group gathers 12,000 farmers and processes sugar beets, cane and cereals.
$1 = 0.8928 euros Reporting by Sybille de La Hamaide; Editing by Alexandra Hudson