Corn harvest in Brazil
SAO PAULO (Reuters) – Profits at FS, a producer of corn ethanol, animal nutrition and bioenergy, fell by almost half in the first fiscal quarter of the 2022/23 season, despite an increase in revenues and cash generation with higher prices. of products and increase in cereal resales, the company said in a note this Wednesday.
Net income amounted to BRL 267.2 million, versus BRL 506.6 million in the same period last year, mainly due to the worsening of financial results due to the exchange rate variation and the increase in the Brazilian basic interest rate.
Net revenue reached 1.9 billion reais, registering a growth of 45.7% in the same comparison, while earnings before interest, taxes, depreciation and amortization (Ebitda) totaled 676 million, an increase of 28.5%.
“Our growth in net revenue and Ebitda is a reflection of assertive business strategies and improvement in the prices of ethanol and animal nutrition products, in addition to the increase in corn commercialization operations,” said FS CEO Rafael Abud, in note.
Net revenue from corn resale totaled 254.6 million reais in the quarter, a strong increase of 216.4 million in comparison with the same period last year, when the company was starting this activity.
The net sales price of corn was 76.89 reais/bag, 3.4% below the annual comparison, while the volume increased by 167.3 thousand tons.
Capex in the period totaled 418.5 million reais, an increase of 457.8%, mainly due to investments in the construction of the third FS plant in Primavera do Leste (MT).
The company expects to invest around 2 billion reais in the next three quarters.
FS, the first ethanol industry in Brazil that uses corn in 100% of its production, has two units, one in Lucas do Rio Verde and another in Sorriso, Mato Grosso. In addition, it produces DDG for animal nutrition, corn oil and bioelectricity.
(By Roberto Samora)