SAO PAULO, Feb 14 (Reuters) - Brazilian sugarcane processor Raizen reported a net loss of 2.57 billion reais ($450.5 million) in the third quarter of its 2024/25 season, contrasting with a profit of 793 million reais during the same period the prior year.
Raizen, the largest sugarcane processor globally and jointly owned by Brazilian conglomerate Cosan and Shell, specializes in the production of sugar and ethanol, as well as fuel distribution.
In its January operational preview, Raizen disclosed a nearly 27% decrease in sugarcane crushing compared to the previous year, leading to the suspension of its financial forecast for the 2024/25 crop year and causing its stock to plummet to record lows.
The company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter stood at 3.12 billion reais, marking a 20.5% decline from the previous year and falling short of the 3.42 billion reais estimated by analysts in an LSEG survey.
Quarterly net revenue increased by approximately 14% to 66.9 billion reais, surpassing analysts' expectation of a 62.3 billion real revenue for the quarter.
Raizen attributed its net loss to "a reduced contribution from its operational performance, and elevated financial expenses, including non-recurring effects."
($1 = 5.7042 reais)