Cosan (CSAN3) records a 94.6% drop in adjusted profit in the 2nd quarter of 2022, to BRL 53.6 million

Cosan (CSAN3) recorded adjusted net income of R$ 53.6 million in the second quarter of 2022 (2Q22), 94.6% lower than that reported in the same stage of 2021, the company said on Friday (12). ).

Without taking into account the adjustments, the loss would have been R$ 125 million in the second quarter, compared to a positive figure of R$ 996.6 million in the same period of the previous year. According to the company, the performance was impacted by additional financial expenses, with no cash effect, in the corporate, and by the high interest rate that, consequently, increased the cost of indebtedness in all the group’s businesses.

Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) totaled R$4.144 billion in 2Q22, a 34.5% growth compared to 2Q21.

“The result was driven by the excellent operating performance of all the companies in the portfolio, highlighting, at Raízen, the higher volumes sold, with greater profitability”, comments the company.

Net revenue totaled BRL 42.776 billion in the second quarter of this year, a growth of 69.4% compared to the same period in 2021.

The net financial result was negative by R$1.255 billion in the second quarter of 2022, reversing financial gains of R$101.2 million in the same stage of 2021.

Cosan’s consolidated investments, on a pro forma basis, ended the quarter at R$ 2.0 billion (+19%), mainly due to the increase in Raízen (+2x), which can be explained by the incorporation of Biosev, by the increase in spending on sugarcane fields, in line with the focus on improving agricultural productivity, and accelerating the construction of the E2G plant.

Cash consumption for shareholders (FCFE) was R$331 million in the period, compared to the generation of R$794 million in 2Q21. The variation between quarters can be explained mainly by seasonal effects affecting Raízen’s working capital, as well as by the increase in investments, due to the incorporation of Biosev and acceleration of the Renewables projects, partially offset by the higher operating cash generation of the other businesses .

On June 30, 2022, the company’s net debt was BRL 38.212 billion, an increase of 37.7% compared to the same period in 2021.

The financial leverage indicator, measured by net debt/adjusted EBITDA, stood at 2.4 times in June/22, down 0.3 times compared to the same period in 2021.

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