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Brazil's Raizen posts quarterly bottom line as ethanol margins drop, taxes increase

Brazilian sugarcane processor Raizen posted on Tuesday a 158.3 million genuine ($ 27.5 million) bottom line for the 2nd quarter of its , due in part to lower margins on its ethanol service and higher income tax expenditures.

The result represents a sharp drop from the 28.4 million real earnings it logged a year previously.

WHY IT'S IMPORTANT

Raizen, whose primary investors are Brazilian corporation Cosan and Shell, is the world's. biggest sugarcane processor.

The firm produces sugar and ethanol, while also. running as a fuel supplier, consisting of to gas stations.

BY THE NUMBERS

Changed revenues before interest, taxes, devaluation. 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 approximated by experts in a LSEG survey.

Net revenue increased 22.6% in the duration to 72.9 billion. reais.

SECRET PRICES QUOTE

The net loss for the quarter was driven by lower. generation of gross revenue, due to the drop in margins in. mobility and sustainable (units), Raizen said in the incomes. report, including that balanced out greater profitability in its sugar. business.

A larger accounting income tax expenditure due to a. temporary difference in the incomes between the group's legal. entities likewise added to these outcomes, it added.

(source: Reuters)