Raízen reported accelerated sugarcane processing and increased sales of sugar and ethanol in the second quarter of the 2024/25 crop (July to September) compared to the previous quarter. The company provided an operational preview, with financial results set to be released on November 12.
Cane Processing and Productivity
- 32.9 million tons of sugarcane were processed, 6.5% higher than Q1 but 12.2% lower compared to the same quarter last year.
- Productivity reached 76 tons per hectare, a 13.6% decline from the prior quarter and 16.5% lower year-over-year, largely due to dry weather.
- However, the Total Recoverable Sugars (ATR) content increased to 147 kg per ton, representing an 18% quarterly rise and 2.8% annual growth.
Sugar and Ethanol Sales
- Sugar Sales:
- 5 million tons sold, with 2.9 million tons from third-party suppliers.
- This marks a 53.6% increase compared to the same period in the 2023/24 crop.
- Price per ton ranged from R$ 2,500 to R$ 2,700, reflecting earlier pricing strategies. In Q1, the price averaged R$ 2,531, and a year earlier it was R$ 2,497.
- Ethanol Sales:
- 1.8 billion liters sold, with 974 million liters being the company’s own production.
- Sales increased 38% from Q1 and 25% year-over-year.
- Average prices ranged from R$ 2,600 to R$ 2,750 per cubic meter, representing a decline compared to previous periods. A year earlier, the price was R$ 2,945 per cubic meter.
- The drop was attributed to increased sales of anhydrous and hydrated ethanol, rather than specialty ethanol used in the industry.
- Second-generation ethanol (E2G) production fell 9% to 15 million liters due to maintenance at the Bonfim plant.
Renewable Energy and Mobility
- Renewable Energy:
- 912,000 MWh of energy sold at prices ranging between R$ 220 and R$ 270 per MWh.
- Mobility:
- Sales in Brazil ranged between 6.95 billion and 7.1 billion liters.
- In Argentina and Paraguay, sales were between 1.8 billion and 1.9 billion liters.
Raízen’s solid performance in Q2 reflects its ability to navigate production challenges while seizing market opportunities, particularly in ethanol sales as prices improved.
