Raizen Reports Q3 2024/25 Loss Amid Sugarcane Decline

Raizen, the world's largest sugarcane processor, posted a net loss of 2.57 billion reais ($450.5 million) in Q3 of its 2024/25 season, reversing a 793 million real profit from a year earlier. The loss reflects weaker operational results and rising financial expenses.

The company, co-owned by Cosan (NYSE:CZZ) and Shell (LON:SHEL), saw a significant drop in sugarcane crushing, down nearly 27% year-on-year, contributing to its losses. Raizen, a major producer of sugar and ethanol, also distributes fuel.

Despite a 14% increase in net revenue to 66.9 billion reais, surpassing the 62.3 billion real forecast from LSEG analysts, adjusted EBITDA fell 20.5% to 3.12 billion reais, missing the projected 3.42 billion reais.

Raizen’s operational preview released in January revealed the sharp decline in sugarcane crushing and the withdrawal of financial guidance for 2024/25, which pushed its shares to record lows.

The company cited higher financial costs, including non-recurring items, as factors driving the quarterly loss. The results highlight challenges in the global sugar and ethanol markets, impacting Raizen’s profitability.