Castrolanda raises credit rating and reinforces confidence in agriculture

Castrolanda Cooperativa Agroindustrial had its credit rating upgraded by Moody's Local Brasil. The issuer rating was raised from A to A+, with a stable outlook. The decision reflects the robustness of the cooperative model adopted, the strengthening of operating results, and the organization's financial discipline over recent years.

Moody's report highlights cooperative member loyalty, low origination risk, historically low default rates, and operational efficiency as key elements of this strong performance. Furthermore, it emphasizes the importance of Unium—a strategic alliance with the Frísia and Capal cooperatives—for sustainable growth, especially in the dairy segment.

In 2024, Castrolanda's EBITDA reached R$555 million, with a 10% margin, compared to R$385 million and a 7% margin recorded in 2023. Moody's report also pointed out that the cooperative's operating cash generation was R$227 million, even in the face of an intense cycle of investments in projects such as the new Cheese Factory, in Ponta Grossa, and the Malt Factory in Ponta Grossa, the result of intercooperation between six cooperatives in Campos Gerais.

The stable outlook also considered the projected 5% annual growth in the cooperative base and consistent investments in infrastructure such as the new grain unit in Colinas do Tocantins.

"This was great news for us, as it reflects the results of the medium-term work we've been implementing here at the cooperative. Management focused on processes, procedures, and the sustainability of Castrolanda," celebrates Willem Berend Bouwman, president of Castrolanda.

Willem also notes that the recognition comes at a challenging time for the agricultural sector. "We've put our house in order. It took five years of preparation and planning, and now we have this recognition from a renowned agency. This gives confidence and peace of mind to our members, who see the strength of the cooperative validated by an external institution. The agricultural sector has been undergoing a major transformation, with many challenges. Even so, Castrolanda managed to improve its rating, which demonstrates our resilience," he adds.

Financial strength

According to Paulo Alberto Machinski, Castrolanda's executive financial manager, the rating upgrade by Moody's Local reinforces the cooperative's solidity and credibility in the market. "The credit rating is essentially an assessment of Castrolanda's credit risk in the market. Moody's has the credibility to determine whether or not we are good payers, and this rating reflects that," he explains.

Machinski also points out that having a high rating of A is a sign of strength. "This rating shows that Castrolanda's growth and development strategy, built on the Horizon 2030 Strategic Plan, is on the right track," he points out.

For members, he says, it's a clear sign that they're linked to a solid cooperative, with sound economic and financial foundations, efficient processes, and well-defined credit metrics. "This is positive not only for the cooperative's image, but also for creditors, who begin to see better conditions, including the potential for lower funding costs," concludes the executive manager.