SAO PAULO, Nov. 9, 2016 /PRNewswire/ -- Biosev S.A. (BSEV3: BM&FBOVESPA), the world's second-largest sugarcane processor, posted quarterly adjusted EBITDA of R$523 million, an increase of 43% over the same period of previous crop year. Net income achieved R$24 million in the quarter.
Biosev's average yield increased 3.5% in first six months of the crop year, to 83.4 tons of cane per hectare, as a result of enhanced management of its sugarcane fields combined with the more intensive use of agricultural technologies. As a result, crushing volume amounted to 21.3 million tons, an increase of 2.9% from the prior crop year.
In 6M17, net revenue from sugar sales increased by 49% to R$1.6 billion, boosted by a 24% rise in prices coupled with a 19% growth in sales volume. On the ethanol side, net revenues increased by 12%, to R$855 million, boosted by a 17% increase in prices. In the quarter, sugar revenue increased by 64% as a result of higher sales volumes and prices, while ethanol revenue rose by 6% mainly due to higher prices.
It is also worth to highlight that the company has already hedged 61% of its exposure to sugar prices for the next crop year, at a price level 36% above hedged prices for the current 2016/17 crop year.
In 6M17, Adjusted EBITDA amounted to R$675 million, up 19% from the same period of the previous crop year, driven by net revenue growth, which in turn was supported by higher sugar sales volumes and prices, as well as higher ethanol prices in the period.
The company ended the second quarter of the 2016/17 crop year with adjusted net debt of R$4.5 billion, down 12.7% from the previous quarter, reflecting the reduction in working capital needs. As a result, financial leverage fell to 3.0x, from 3.7x in 1Q17 and 4.2x in 2Q16.
Biosev is the world's second largest sugarcane processor, with 11 agroindustrial units in Brazil. Biosev is controlled by the Louis Dreyfus Group and began operating in the sugar and ethanol industry in 2000, when it acquired its first unit in Brazil. Since then it has built a track record of growth through both acquisitions and expansion projects that have led its crushing capacity to increase from 0.9 million tons/year in 2000 to 36.4 million tons/year today. Biosev manages 346,000 hectares of land and has surplus biomass power generation capacity of 1,346 GWh. Biosev adopts the highest standards of corporate governance and its stock is traded on the Novo Mercado segment of the Sao Paulo Stock Exchange (BM&FBovespa).
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SOURCE Biosev S.A.