Biosev Reaches an EBITDA of R$ 219 Million and Raises its Margin by 3.4 Percentage Points
SAO PAULO, Aug. 14, 2014 /PRNewswire/ — Biosev (BSEV3), the second largest sugarcane processor in the world, posted an EBITDA of R$ 219.2 million, with a 3.4 percentage point increase on its margin, to 24.1 percent in the first fiscal quarter of 2015. The major contribution to this result came from higher crushing volumes, improved prices, and revenue growth coming from energy sales.
In the first quarter of the 14/15 crop year, the company crushed 9.7 million tons, up 5.6 percent year-on-year. Between April and June, net revenue from energy rose 31.4 percent, closing the period at R$ 82.3 million. The progress achieved reflects the increased crushing volumes and improved energy sales at higher prices on the spot market, which accounted for 41.6 percent of total energy revenue.
The average price rose 17.9 percent, to R$ 1,068 per ton of product TRS (Total Recoverable Sugar), as a result of mix optimization and hedging strategy, which, in turn, allowed Biosev to improve its profitability.
In the quarter, the company decided to reduce its sugar and ethanol sales volume in order to increase operating profitability during the crop year. The initiative resulted in higher inventory levels and in a 14.5 percent reduction in net revenue year-on-year.
Biosev posted a gross profit of R$ 146.9 million for the quarter, reversing a negative R$ 61.6 million in the same period last year. This development helped divide pre-tax losses by 4 and net losses by 2.
Biosev is the second largest sugarcane processor in the world, with 11 units in operation, strategically located in four agribusiness hubs. The company, owned by Louis Dreyfus Commodities Holdings Group, kicked-off its operations in the sugar-ethanol industry in the year 2000, with the acquisition of its first unit in Brazil. It currently has a processing capacity of 36.4 million tons of sugarcane annually and can produce 1,346 GWh/year of surplus renewable power by using sugarcane bagasse and other types of biomass. Biosev adopts the highest corporate governance standards and its stock is traded on BM&FBovespa’s Novo Mercado segment.
SOURCE Biosev S.A.