BRAZIL: Biosev increases crush by 7% in in the first half of the 2017/18 season

Published: 11/09/2017, 3:58:59 PM

Biosev announced Thursday it crushed 22.7 million tonnes of sugarcane in the first six months of the 2017/18 season, up 6.8% from the prior cycle, reports Sugaronline.

"The greater milling volume in the first six months of the 2017/18 season is mainly due to the greater availability of cane itself, as a result of increased productivity (tonnes of cane per hectare) and the efficiency and reliability of all of the company's operations," the company said in its earnings report.

Productivity measured by tonnes of cane per hectare (TCH) totaled 85 tonne/h, up 2% from the first six months of the 2016/17 season.

Total Recoverable Sugar (ATR) reached 130.8 kilos per tonne in the first half of the season, up 0.7% from the same period last year, due to improvement in the management of sugarcane fields and better weather conditions for mills located in the Ribeirão Preto region, in relation to the same time last year. Total volume of produced ATR has also increased 9.4%, to 2.9 million tonnes.

Biosev's net profit totaled BRL32.8 million (US$10.1 million) in the second quarter of the season, up 39,7% from the same period last year. In the first six months of the season, the company still accumulates a net loss of BRL544.5 million (US$167.3 million).

Net revenue reached BRL1.78 billion (US$546 million) in the second quarter of the season, down 20.2% from the same time last year. In the first six months of the 2017/18 cycle, net revenue totaled BRL3.6 billion (US$1.1 billion), down 7.4%.

Biosev hedged 1.299 million tonnes of its estimated sugar production for the 2017/18 season, and 261,000 tonnes for the 2018/19 season.