“Usina Coruripe” achieves record net profit of R$ 511 million in 2022/2023 harvest

Usina Coruripe, one of the leading companies in the sugar-energy sector in Brazil, announces positive financial and commercial results for the 2022/2023 harvest. According to the audited balance sheet released this week, the company achieves a total net sales record of R$ 3.66 billion, 23% higher than the previous period (R$ 2.99 billion). Net profit reached R$ 511 million, which represents +22.5% compared to the R$ 417 million reported in the 2021/2022 crop. Operating cash generation, as measured by Ebitda, also reached an all-time high of R$ 1.4 billion: an increase of 31.4% compared to the R$ 1.1 billion reported in the 2021/2022 harvest.

In the last harvest, the company allocated 60.3% of crushing for sugar production, with 7.6% of crystal sugar sold in the domestic market and 52.7% of raw sugar destined for export. The remaining 39.7% of crushing was destined to ethanol production. "The company's fundamentals have been strengthened, with the confirmation of the well audited results of the last harvest and the projections of also new records for the current one, establishing a solid base that will allow us to reach even higher levels of performance in subsequent years," says Mario Lorencatto, CEO of Usina Coruripe.

In the commercial aspects, the company continues with favorable fundamentals between supply and demand in the international market as well a positive cycle of prices. In the current harvest, raw sugar, a product that represents more than half of Coruripe's portfolio, should be priced at levels approximately 30% higher when compared to the average price of the previous harvest, with 96% already fixed. "The domestic crystal sugar market has also shown consistent prices and profitability. Coruripe's growing presence in this market segment reflects the excellent quality of our own brand and the recent growth of production capacity from the investments made in the expansion of Campo Florido refinery, reaching record sales volumes, at better levels than initially budgeted", adds Lorencatto.

He points out that ethanol is, at the beginning of the harvest, priced above the budget, supported mainly by the greater and growing participation of Coruripe in the international market. For the 23/24 harvest, the target is to export more than 25% of the total sales volume of ethanol.

"After a promising start to the harvest, with better results than initially projected, we reinforced our commitment and strategy to reduce debt and create value for shareholders and stakeholders," says Lorencatto. He comments that the good results were also driven by the start of operation of the Iturama road-rail terminal, in June last year, which allows the direct transport of sugar from the "Triângulo Mineiro" to the Port of Santos. "We have achieved significant gains in efficiency and logistics optimization.

Perspectives

Operationally, the company has started a harvest in which it will have full capacity to process more than 15 million tons. "This is a reflection of the return on investments made in recent years, with a focus on renewal and expansion of the sugarcane field, modernization of the agricultural fleet, greater participation of own sugarcane and industrial assets," says Coruripe's CFO, Thierry Soret. In addition, the company presents an agenda of efficiency and cost reduction, with the support of an external consultancy. According to Soret, for the 24/25 harvest, with most of the investments having already been made in the expansion of the Limeira do Oeste plant (increase the sugarcane capacity in 1 million tons and installation of a sugar factory, which will produce 185 thousand tons of additional raw sugar). "Coruripe will have the fruits of its efforts with more than R$ 330 million in revenue and R$ 200 million in incremental Ebitda in the group, reaching a capacity of 16 million tons of crushing." The company also inaugurated a new thermal plant in Alagoas, CVW, which should double the sale of electricity co-generated in that plant.

About Usina Coruripe

Usina Coruripe, controlled by the Tércio Wanderley group, headquartered in Coruripe (AL) and founded in 1925, is the largest company in the sugar-energy sector in the North/Northeast. It is also among the largest groups in the sector in Minas Gerais and is one of the largest in Brazil. With four units in Minas Gerais State (cities of Iturama, Campo Florido, Carneirinho and Limeira do Oeste), one in Alagoas (city of Coruripe) and has its own road-rail terminal in Iturama. "Usina Coruripe" has a crushing capacity of 15 million tons of sugarcane, produces more than 1 million tons of sugar, around 500 million liters of ethanol, with a storage capacity of about half of this production, and commercializes renewable energy produced from the burning of biomass. Currently, Coruripe directly employs 7,700 employees.

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