PARIS (Reuters), – The French sugar and ethanol producer Tereos announced Wednesday a rise in its third quarter core earnings. It was due to the fact that high prices offset a bad harvest in Brazil.

Tereos (the world’s 2nd largest sugar manufacturer by volume) reported adjusted earnings before interest and tax depreciation or amortization (EBITDA), a 65% increase at constant exchanges rates, to 223 millions euros ($254 million)

It set a target to attain EBITDA in a rolling 12-month basis, ranging from 600-700 million euro per month until September 2022. EBITDA stood at 516million euros in the 12 months to December 31.

As the global market continues to be in deficit, and Europe is facing supply tensions, the French cooperative anticipates that sugar prices will remain high.

Tereos announced that it will pass on the rising energy and cereal costs for its starch business. This was in support of third quarter results.

Tereos said that while the group’s recent impact was limited by hedging, it is expected that rising gas prices will have a greater effect on this quarter’s European sugar results.

According to the company, Philippe de Raynal, Chief Executive Officer of the group, is leaving after just one year. Gwenael Elies will replace him on an interim basis.

De Raynal’s group, who made it a priority to deleveraging this cooperative, conducted a thorough review of the company’s activities. The sale of China’s starch business, exit from the malt industry and launch of an operation to end the loss-making sugar company in Romania were the results of this review.

Tereos stated that it had a net debt of 2.52 billion euro at the close 2021. That is an increase from March 31, but still lower than the previous year’s 2.7 billion.

Tereos raised 350m euros in senior unsecured notes due 2027 last month, which it stated it will use to repay its existing debt.

The medium-term financial goals for 2024 were reiterated, with net debt under 2 billion euro.

($1 = 0.8763 euros)