Cosan attributes profit growth to Raízen.
The formation of the joint venture with Shell was responsible for the second-quarter performance, the company says.
Cosan reported a net profit of R$ 2,3 billion in the first quarter of the 2011/2012 crop year (April to June of this year), compared to R$ 400 in the same period last year. According to the company, the result was impacted by the formation of Raízen, a joint venture between Cosan and Shell, to explore the sugar, ethanol and energy cogeneration businesses, as well as the fuel distribution business.
EBITDA (earnings before interest, taxes, depreciation, and amortization) reached R$ 3,755 billion, 689% higher than the R$ 475,7 million recorded in the same quarter of the previous year, with a margin of 72,4%, compared to 11,9% in the previous period. Adjusted EBITDA, excluding the effects of Raízen's formation, totaled R$ 439,9 million, a decrease of 7,5% compared to the R$ 475,7 million of the first quarter of the previous year. The adjusted EBITDA margin was 8,5%, compared to 11,9% in the previous year.
Cosan's net revenue increased 29,7%, to R$ 5,188 billion, compared to R$ 3,999 billion in the same months of last year.
Without the effects of the Raízen merger, Cosan's net profit would have been R$ 167,5 million in the first quarter of 2011/12, a figure also higher than the R$ 400 recorded in the same period of the 2010/11 harvest.
According to the company's financial statement, the net profit from the formation of Raízen, after taxes, was R$ 2,187 billion, considering an assessed value of the business of R$ 16,12 billion, of which Cosan's 50% stake would be R$ 8,06 billion.
Reset Following the creation of Raízen – a joint venture formed on June 1, 2011, between Cosan and Shell to explore the sugar, ethanol, and energy cogeneration businesses, as well as the fuel distribution business – the company's business units were redefined. The former Cosan Açúcar e Álcool (CAA) became Raízen Energia and its main activity is the production and commercialization of sugarcane derivatives. This unit, which also includes energy cogeneration activities, has stakes in companies involved in research and development of new technologies.
Raízen Combustíveis is responsible for the distribution and sale of fuels, primarily through the Esso and Shell service station network, as well as supplying aviation fuel. The lubricants business has been excluded and will now be accounted for as Other Businesses, along with investments in agricultural land and the corporate structure of the Cosan group's activities.
Rumo remains Cosan's business unit focused on providing logistics services for the transportation, storage, and port handling of sugar, both for Raízen Energia and for third parties.