Biosev reaches 1,8 billion in adjusted EBITDA in the 19/20 harvest

A Biosev SA. ended the 19/20 harvest with an adjusted EBITDA of R$1,8 billion, an increase of 12,9% compared to the same period in the previous harvest. In 4Q20, the indicator reached R$389,7 million, with an EBITDA margin of 47,1% and unit EBITDA of R$341,2 per ton, values ​​higher than 4Q19 by 27%, 7,5 p.p. and 29,2% . The variation is the result of the reduction in cash COGS, the increase in net revenue and the Company's strategy of optimizing sales with priority to products and periods of greater capture of added value.

Net revenue in the 19/20 harvest, excluding the accounting effects (non-cash) of hedge accounting of debt in foreign currency (HACC), reached R$6,8 billion, 7,6% higher than last harvest. In 4Q20, the index reached R$1,9 billion, 47,5% higher than 4Q19. One of the factors that contributed to the result was the increase in ethanol sales on the foreign market.

Regarding the operation, crushing recorded in the 19/20 harvest totaled 27 million tons, in line with the 18/19 harvest. This is due to the Company's strategy of mitigating the effects of the frost that hit the Mato Grosso do Sul region, offset by growth of around 5% in the other regions in which it operates. Sugarcane productivity measured by the consolidated TCH reached 82,9 tons/ha, 3,5% higher than the previous harvest, a result resulting from more favorable weather conditions during the sugarcane field formation period - which occurs from January to March.

The ethanol mix in the 19/20 harvest reached 65,3% due to the greater profitability of biofuel compared to sugar. This is a result in line with the previous harvest, with the anhydrous mix being 28,9%, 7,5 p.p. higher than the previous harvest, a result of the commercial strategy of focusing on products with higher added value.

For Juan José Blanchard, president of Biosev, the result reflects the alignment of the teams with the Company's objective. “We had significant gains in operational productivity, the result of the last three years of work. We remain focused on reducing costs and increasing efficiency while constantly adapting to market movements and sector developments. During the harvest that ended, we worked very focused on evolving our processes in the field and in the production units, which brings efficiency to our business and contributes to the increasing improvement of our results”, he states.

RenovaBio

Biosev completed the certification of all its plants for the RenovaBio program, the Federal Government's new National Biofuels Policy, whose main objective is to increase the participation of biofuels in the Brazilian transport matrix, also contributing to the reduction of greenhouse gas emissions greenhouse in the country. With this certification, the company is able to issue CBIOs, decarbonization credits, based on our purchase and sales invoices. Each CBIO will correspond to one ton of CO2 that is no longer emitted, will have no expiration date and will only be removed from circulation when the holder requests retirement of the credit. For the issuance, a bookkeeper (bank or financial institution) will be used and the registration, negotiation and retirement request will be made at B3 S.A. – Brasil, Bolsa e Balcão. Currently, the company is in the process of analyzing the bookkeeping.