Sao Martinho Announces Fourth Quarter 2008 Results
SAO PAULO, Brazil, June 27 /PRNewswire-FirstCall/ — SAO MARTINHO S.A. (Bovespa: SMTO3; Reuters SMTO3.SA and Bloomberg: SMTO3 BZ), one of the largest sugar and ethanol producers in Brazil, announces today its results for the fourth quarter of 2008 (4Q08) relative to the 2007-08 harvest.
— On February 25, 2008, we announced the request for the Company’s effective termination as a member of Copersucar, sugar and ethanol producers’ cooperative for Sao Paulo state. The decision will allow the sale of products in higher value-added markets.
— Net revenue grew by 26% in 4Q08 in relation to 4Q07, driven mainly by the increases in anhydrous and hydrous ethanol sales volumes of 181.9% and 49.4%, respectively.
— Adjusted EBITDA in 4Q08 grew by 11.2% year on year to R$ 62.6 million, with EBITDA margin of 27.9%, compressing by 2.7 percentage points versus 4Q07.
— Sales volume (in TRS equivalent) in fiscal year 2008 grew by 11.8% year on year.
— In fiscal year 2008, investments in the Boa Vista mill Greenfield project totaled R$ 371 million. Approximately R$ 200 million will be invested in the 2008-09 harvest, which will advance the Company’s project to reach production of 3.4 million tonnes of sugarcane in the 2010-11 harvest.
— In view of the current sugar and ethanol prices, in the 2008-09 harvest the Sao Martinho Group will produce approximately 631,000 cubic meters (m3) of ethanol and 578,000 tonnes of sugar. Approximately 64% of the sugarcane processed will be destined for ethanol production and 36% for sugar. This production will come from the crushing of 11.6 million tonnes in the 2008-09 harvest.
Conference Calls: Date: 6/30/2008 Portuguese Time: 2:00 pm (Brasilia Time) / 1:00 pm (U.S. ET) Phone: +55 (11) 2188-0188 Code: Sao Martinho Replay: +55 (11) 2188-0188 English Time: 3:30 pm (Brasilia Time) / 2:30 pm (U.S. ET) Phone: +1 (973) 935-8893 Code: 37771043 Replay: +1 (973) 341-3080 About Sao Martinho
Sao Martinho S.A. is one of Brazil’s largest sugar and ethanol producers, with current annual sugarcane crushing capacity of 12.5 million tonnes. The Group produces sugar and ethanol at three mills: Iracema, Sao Martinho and the Boa Vista. http://www.saomartinho.ind.br/ri
Sao Martinho S.A.
CONTACT: Joao Carvalho do Val, Chief Financial and Investor RelationsOfficer, or Felipe Vicchiato, Investor Relations, 11 2105-4100,firstname.lastname@example.org
Web site: http://www.saomartinho.ind.br/ri