Brazil's Raizen posts quarterly net loss as ethanol margins drop, taxes rise
Adds details of the earnings report
SAO PAULO, Nov 12 (Reuters) -Brazilian sugarcane processor Raizen RAIZ4.SA posted on Tuesday a 158.3 million real ($27.5 million) net loss for the second quarter of its fiscal year, due in part to lower margins on its ethanol business and higher income tax expenses.
The result represents a sharp drop from the 28.4 million real profit it logged a year earlier.
WHY IT'S IMPORTANT
Raizen, whose main shareholders are Brazilian conglomerate Cosan CSAN3.SA and Shell SHEL.L, is the world's largest sugarcane processor.
The firm produces sugar and ethanol, while also operating as a fuel distributor, including to gas stations.
BY THE NUMBERS
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at 3.7 billion reais in the quarter, down almost 2% year on year and below the 4 billion reais estimated by analysts in a LSEG poll.
Net revenue rose 22.6% in the period to 72.9 billion reais.
KEY QUOTES
"The net loss for the quarter was driven by lower generation of gross profit, due to the drop in margins in mobility and renewable (units)," Raizen said in the earnings report, adding that offset higher profitability in its sugar business.
"A larger accounting income tax expense due to a temporary difference in the earnings between the group's legal entities also contributed to these results," it added.
($1 = 5.7490 reais)
Reporting by Andre Romani; Editing by Anthony Esposito and Chris Reese
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