Sao Martinho Q2 FY 2011 profit climbs 16.8% Y/Y

Nov 15, 2011 - Brazilian sugar and ethanol maker Sao Martinho (SAO:SMTO3) posted a net profit of BRL 48.7 million (USD 27.6m/EUR 20.3m) for the second quarter of fiscal year 2011/12, to end in March 2012, an increase of 16.8% year-on-year.
The strong performance was attributed to higher sugar sales and prices. The company sold 297,000 tonnes of sugar in the period, a growth of 10.2%, while the average price rose 16%.
In the first half of 2011/12, Sao Martinho's net profit climbed 43% year-on-year to BRL 86.6 million.
Net revenue increased by 17.5% to BRL 398 million in the three months to September while from April to September, it swelled 16.5% to BRL 624 million.
The adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) added 8.1% to BRL 163.1 million in the second quarter and 5.5% to BRL 306.4 million in the first half.
Sao Martinho also said it downgraded its estimate for the 2011/2012 sugarcane crushing by 11.8%, due to the adverse weather conditions throughout the centre-south region during current harvest. As a result, the company now expects to process 10.7 million tonnes of sugarcane, producing approximately 770,000 tonnes of sugar, 200,000 cu m of anhydrous ethanol and 180,000 cu m of hydrous ethanol.
(BRL 1 = USD 0.566/EUR 0.417)

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