Cosan SA (FRA:9CI0)
€ 5.2 0 (0%) Market Cap: 2.42 Bil Enterprise Value: 14.84 Bil PE Ratio: 6.78 PB Ratio: 0.76 GF Score: 81/100

Q3 2024 Cosan SA Earnings Call (English, Portuguese) Transcript

Nov 14, 2024 / 01:00PM GMT
Release Date Price: €7.35

Key Points

Positve
  • Cosan SA (CSAN) has been disciplined in capital allocation and improving leverage through liability and portfolio management, especially in a high-interest rate environment.
  • The company successfully completed several strategic transactions, including the acquisition of Compagas and the sale of Norgás, enhancing its portfolio management.
  • Rumo experienced higher volumes and tariffs, resulting in increased margins and market share gains in the Port of Santos.
  • Moove achieved a 9% EBITDA increase quarter-on-quarter despite lower volumes, supported by a strong product mix and commercial strategy.
  • Cosan SA (CSAN) improved its debt maturity profile to 6.4 years and reduced the average cost of debt, benefiting from favorable debt capital market conditions in Brazil.
Negative
  • Cosan SA (CSAN) reported a decrease in net income compared to the previous year, primarily due to lower dividends from Vale and the impact of Cosan's shares.
  • The company experienced a slight increase in safety incidents during the quarter, although it remains within acceptable levels.
  • Raizen faced challenges with reduced sugarcane crushing levels due to drier weather and fires, as well as lower ethanol prices impacting EBITDA.
  • The debt service coverage ratio decreased slightly, raising concerns about future dividend sources and the need for portfolio management to maintain financial health.
  • The company faced challenges in executing IPOs for Moove and Compass due to market conditions, impacting potential liquidity events.
Operator

Good morning, everyone, and thank you for waiting. Welcome to Cosan's third quarter 2024 earnings conference call. (Operator Instructions)

Please note that this conference call is being recorded and will be made available on the company's Investor Relations website at cosan.com.br. You can also download the presentation including the English version in the chat icon. (Operator Instructions)

We would like to highlight that the information provided in this presentation and any statements that may be made during the conference call regarding the business outlook, projections and operational and financial targets of Cosan are based on the company's management's beliefs and assumptions as well as information currently available.

Forward-looking statements are not performance guarantees. They involve risks, uncertainties and assumptions as they refer to future events and therefore, depend on circumstances that may or may not occur. Investors should understand that general economic conditions, market conditions and other operational factors may affect Cosan's future performance and

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