Sugar and alcohol company Raízen (RAIZ4) reported adjusted net income of R$2.52 billion in the fourth quarter of the 2022/2023 crop year, a result about 12 times higher than in the same period last year, the balance sheet was released this Friday . Industrial fair.
Profit was boosted by recognition of PIS and Cofins tax credits for a consolidated R$3.77 billion.
The company’s net sales for the quarter were R$55 billion, up 2.8% year-on-year.
Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) rose 232% year over year to R$5.91 billion. Without adjustment, the peak was up 153% year-on-year at R$6.83 billion.
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According to the company, the drier climate of the past two years has resulted in reduced sugarcane availability this year (crushing volume compared to an original forecast of 80 million tonnes). As a result, agricultural productivity was lower than in the previous season, leading to a decrease in product availability. “In addition to the adverse weather conditions, this season we have intensified the renewal of sugar cane fields and reduced the harvested area, halfway to restoring agricultural productivity,” he stressed.
Net debt was R$20.36 billion at the end of the quarter driven by primary cash generation offset by capital expenditure growth (+47% YoY) and acquisitions and other net effects.
Approximately R$2.0 billion (16% of total debt) will be invested in the Latam operation with the target
Financial investments in Argentina. Leverage was 1.3 times the ratio “net debt/Ebitda over the last 12 months” and was thus at the same level as in the previous year.
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This Friday, the sugar and alcohol company released an estimate of earnings before interest, taxes, depreciation and amortization (Ebitda) adjusted to R$13.5-14.5 billion in the 2023/2024 crop year.
According to a market-related fact, the company forecast investments between BRL 13 and 14 billion for this period.
(with Reuters)
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