Cosan's preliminary figures in line with Link Investimentos' projections
(ADPnews) - Oct 26, 2010 - The preliminary figures of Brazilian ethanol maker Cosan (SAO:CSAN3) ranked in line with the projections of Link Investimentos, the investment house said.
On Saturday, Cosan said it generated a BRL 4.7 billion (USD 2.757bn/EUR 1.988bn) net revenue for the second quarter of the fiscal 2010/2011, to end on March 31, 2011, up 32.1% year-on-year.
Driven by the news, the company shares closed up 3.07% at BRL 26.90 on Monday, on Brazil's Sao Paulo Bovespa Stock Exchange (Bovespa).
According to Leonardo Alves from Link Investimentos, Cosan's sales in the three months to September 2010 came a little below the expectations.
In the sugar segment, Cosan posted a net revenue of BRL 1.107 billion, up 42.7% in annual terms, and the revenue from ethanol operations climbed 62.4%, to BRL 532.4 million. The sales of the fuel distribution subsidiary came in at BRL 2.8 billion, up 25.8%.
However, only the fuel sales exceeded Link Investimentos's projections, by 2%. The sugar sales were 15% lower than the expected and the ethanol sales -- 4%, Alves noted.
According to the analyst, the rise of the sugar prices observed recently on the global market should favour the results of Cosan in the next quarter.
Also, based on the second quarter's performance, Link Investimentos now projects Cosan to post earnings before interest, tax, depreciation and amortisation (EBITDA) of BRL 441.4 million for the next three months, and a net profit of BRL 74 million.
Link Investimentos reiterated its "outperform" recommendation on Cosan.
The audited figures of the company will be published on November 10, after the close of Bovespa.
(BRL 1.0 = USD 0.587/EUR 0.423)