Brazil's Raizen swings to loss in third quarter
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 (NYSE: CZZ ) and Shell (LON: SHEL ), 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)