SAO PAULO (Reuters) – Brazilian sugarcane processor Raizen on Friday posted a 2.57 billion real ($450.5 million) net loss in the third quarter of its 2024/25 season, compared with a profit of 793 million reais in the same period a year earlier.
WHY IT’S IMPORTANT
Raizen, whose main shareholders are Brazilian conglomerate Cosan and Shell, is the world’s largest sugarcane processor.
The firm produces sugar and ethanol, while also operating as a fuel distributor.
ADDITIONAL CONTEXT
Raizen released its quarterly operational preview in January, showing sugarcane crushing fell nearly 27% year-on-year, and also discontinued its financial guidance for the 2024/25 crop-year, driving its shares to all-time lows.
BY THE NUMBERS
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at 3.12 billion reais in the quarter, down 20.5% year-on-year and below the 3.42 billion reais estimated by analysts in a LSEG poll.
Net revenue rose some 14% in the period to 66.9 billion reais, while analysts expected a 62.3 billion real quarterly revenue.
KEY QUOTES
Raizen said its net profit “reflects a lower contribution of its operational results, and the increase of financial expenses, including non-recurring effects.”
($1 = 5.7042 reais)
(Reporting by Andre Romani and Patricia Vilas Boas; Editing by Leslie Adler and Chris Reese)
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