Raizen reports increased net revenue in quarterly report

By Erin Voegele | February 24, 2015

Brazil-based Raízen has released financial results for the third quarter of fiscal year 2015, the three months ended Dec. 31.

The company reported net revenue of R$16.98 billion ($5.9 billion), up from R$14.88 billion during the same period of the prior year. The increase is attributed, in part, to a 39 percent increase in the volume of sugar and 14 percent increase in the volume of ethanol sold by Raízen Energia.

EBITDA was R$1.43 billion, up from R$1.16 billion during the same quarter of fiscal year 2014. The EBITDA margin increased from 7.8 percent during the third quarter of 2014 to 8.4 percent in the third quarter of 2015. The increase is attributed to several factors, including higher sales and an increase of 88 percent in gross margin of the cogen business due to operational improvements and better prices.

Net income was $314 million, up from $233 million. The 45 percent increase is attributed to better operating results reported by Raízen Combustíveis and Raízen Energia, offsetting a higher financial expense due to foreign exchange variation.

According to a presentation published by Raízen, Raízen Combustíveis sold 2.23 billion liters (590.16 gallons) of fuel, up 7 percent from the same period of the previous year. That volume included 724 million liters of ethanol, up 10.6 percent from the 655 million liters sold during the same quarter of fiscal year 2014.

Raízen Energia crushed 11.7 million tons of sugarcane, down from 16.1 tons during the same period of the previous fiscal year. Sugar production dropped from 1.18 million tons during the third quarter of fiscal year 2014 to 847,000 during the same quarter of the current fiscal year. Ethanol production was 545 cubic meters during the third quarter, down from 558 cubic meters during the same period of 2014.