Financial Performance - Net sales for the fiscal year ended December 31, 2024, increased by R$4,482.2 million, or 11.4%, to R$43,950.7 million compared to R$39,468.5 million in 2023[693] - Gross profit rose by R$2,796.1 million, or 25.6%, to R$13,714.7 million in 2024 from R$10,918.6 million in 2023[693] - Profit for the year from continuing operations decreased by R$13,274.9 million, or 274.3%, resulting in a loss of R$8,435.6 million in 2024 compared to a profit of R$4,839.3 million in 2023[693] - Rumo's net sales increased by R$2,998.7 million, or 27.4%, driven by a 5% increase in volumes transported and higher average transportation tariffs[697] - Compass's net sales grew by R$616.1 million, or 3.5%, primarily due to the acquisition of Compagas and increased volumes of distributed natural gas[698] - Moove's net revenue increased by R$169.7 million, or 1.7%, attributed to the implementation of the Moove Performance System[699] - Radar's leases and sales of land surged by R$698.4 million, or 93.9%, due to the sale of nine properties in 2024[700] Costs and Expenses - Total cost of sales rose by R$1,686.2 million, or 5.9%, to R$30,236.1 million in 2024 from R$28,549.9 million in 2023[702] - Selling expenses increased by R$225.3 million, or 16.7%, to R$1,575.9 million in 2024 compared to R$1,350.6 million in 2023[711] - Selling expenses increased by R$186.4 million, or 16.3%, to R$1,331.4 million for the fiscal year ended December 31, 2024, compared to R$1,145.0 million in 2023[714] - General and administrative expenses rose by 12.6% to R$2,845.3 million in 2024, up from R$2,527.9 million in 2023[716] - Moove's general and administrative expenses increased by 42.7% to R$921.2 million in 2024, primarily due to a R$175.3 million rise in depreciation and amortization expenses[720] Other Income and Financial Results - Other income, net decreased from R$3,924.4 million in 2023 to an expense of R$1,549.8 million in 2024, mainly due to a R$3,155.4 million impairment effect from extreme weather events[723] - Interest in earnings of associates rose significantly by R$1,368.6 million, or 390.6%, to R$1,719.0 million in 2024 from R$350.4 million in 2023[693] - Finance results, net totaled a financial expense of R$8,749.7 million in 2024, an increase of R$852.7 million, or 10.8%, compared to R$7,897.1 million in 2023[726] - Total income tax expenses rose significantly to R$3,190.5 million in 2024 from R$274.4 million in 2023, resulting in an effective tax rate of 60.8%[732] Profitability - Profit attributable to the Company's shareholders decreased from R$1,094.4 million to a loss of R$9,423.8 million for the fiscal year ended December 31, 2024[733] - Profit for the year from continuing operations rose significantly by 174.6% to R$4,839.3 million, compared to R$2,771.0 million in the previous year[735] - Profit attributable to owners of the Company decreased by 6.9% to R$1,094.4 million from R$1,176.0 million in 2022[735] Cash Flow and Capital Expenditures - Cash flows generated from operating activities increased to R$13,081.3 million in 2024, up R$2,755.9 million from R$10,276.4 million in 2023[784] - Net cash flows used in investing activities increased to R$4,488.3 million in 2024, compared to R$4,303.1 million in 2023, primarily due to increased acquisitions[785] - Net cash flows used in financing activities were R$6,605.9 million in 2024, an increase of R$2,089.3 million compared to net cash flows generated in 2023[786] - The company’s capital expenditures for the fiscal year ended December 31, 2024, were R$7,834.5 million, up from R$6,268.0 million in 2023, and R$4,531.4 million in 2022[801] Debt and Financing - Total debt increased by 16.8% to R$66,455.4 million as of December 31, 2024, from R$56,904.7 million in 2023[788] - The company maintained compliance with all financial covenants as of December 31, 2024[790] - Raízen Fuels issued two series of green bonds totaling U.S.$1,500 million (R$7,472.2 million) with maturities in March 2034 and March 2054[793] - The company has a loan of R$2,983 million with a 7.25% annual interest rate, maturing on June 27, 2031[792] - The company’s total current liabilities were R$4,403.1 million as of December 31, 2024, compared to R$4,882.4 million in 2023[796] - The company’s total non-current liabilities increased to R$62,052.3 million in 2024 from R$52,022.3 million in 2023[796] Investments and Acquisitions - Rumo's capital expenditures were R$5,492.7 million in 2024, up from R$3,689.9 million in 2023, focusing on asset renovation and infrastructure improvements[803][807] - Cosan Luxembourg S.A. commenced offers to purchase a total of U.S.$900 million in senior notes, purchasing U.S.$236.5 million of 5.500% notes due 2029, U.S.$273.2 million of 7.500% notes due 2030, and U.S.$268.7 million of 7.250% notes due 2031[802]

4Q24 Unaudited Financial Information February 27, 2025 Confidencial Disclaimer Any estimates and forward-looking statements made during this presentation regarding our strategy and opportunities for future growth are primarily based on our current expectations and estimates or projections of future events and trends that affect or may affect our business and operational results. Although we believe that these estimates and forward-looking statements are based on reasonable assumptions, they are subject to v ...

Cosan S.A. (NYSE:CSAN) Q4 2024 Earnings Conference Call February 27, 2025 11:00 AM ET Company Participants Nelson Gomes - Chief Executive Officer of Raízen Marcelo Martins - Chief Executive Officer Rodrigo Araujo - Chief Financial, Investor Relations Fernando Tinel - Head of IR & ESG Conference Call Participants Isabella Simonato - Bank of America Gabriel Barra - Citi. Thiago Duarte - BTG Pactual Victor Modanese - UBS Regis Cardoso - XP Operator Good afternoon everyone. Thank you for waiting and welcome to ...

Group 1 - The core recommendation is to buy Cosan (NYSE: CSAN) shares despite a significant deterioration in the Brazilian economic scenario since the initial buy recommendation on April 1, 2024 [1] - The analyst acknowledges that the Brazilian economic conditions have worsened considerably, which poses a risk to the investment thesis for Cosan [1] Group 2 - The analyst has over 5 years of experience in equity analysis in Latin America, providing in-depth research and insights for informed investment decisions [1]

Financial Data and Key Metrics Changes - The company reported significant changes in financial metrics, including revenue growth and profit margins, which are critical for assessing overall performance [4]. Business Line Data and Key Metrics Changes - Each business line showed varying performance, with some segments outperforming others, indicating a need for strategic adjustments [4]. Market Data and Key Metrics Changes - The company highlighted changes in market dynamics, including shifts in demand and competitive positioning, which are essential for future planning [4]. Company Strategy and Development Direction - The management outlined strategic initiatives aimed at enhancing operational efficiency and expanding market share, reflecting a proactive approach to industry competition [4]. Management Comments on Operating Environment and Future Outlook - Management provided insights into the current operating environment, discussing challenges and opportunities that could impact future performance [4]. Other Important Information - Additional information regarding regulatory changes and their potential impact on operations was discussed, emphasizing the need for compliance and adaptability [4]. Q&A Session Summary Question: What are the expectations for revenue growth in the next quarter? - Management indicated a positive outlook for revenue growth, driven by increased demand in key markets [4]. Question: How is the company addressing competitive pressures? - The company is implementing strategic measures to enhance its competitive position, including innovation and cost management [4]. Question: What are the plans for capital expenditures in the upcoming year? - Management outlined plans for targeted capital expenditures aimed at supporting growth initiatives and improving infrastructure [4].

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Financial Performance - For the fiscal year ended December 31, 2023, net sales increased by 0.4% to R$39,468.5 million compared to R$39,322.8 million in 2022[871]. - Gross profit rose by 24.2% to R$10,918.6 million, up from R$8,766.0 million in the previous year[871]. - Profit for the year from continuing operations surged by 174.6% to R$4,839.3 million, compared to R$2,771.0 million in 2022[871]. - Profit attributable to owners of the Company decreased by 6.9% to R$1,094.4 million from R$1,176.0 million in the previous year[871]. - Other income, net increased significantly from R$1,752.2 million in FY 2022 to R$3,924.4 million in FY 2023, driven by fair value changes in investment properties and dividends from Vale[901]. - The company reported a profit for the year of R$4,026.4 million as of December 31, 2023[970]. Sales and Revenue - Rumo's net sales increased by 11.1% to R$10,937.7 million, driven by demand for key agricultural commodities[875]. - Compass's net sales decreased by 9.9% to R$17,767.3 million, primarily due to a decline in distributed natural gas volume[877]. - Moove's net revenue grew by 12.2% to R$10,078.6 million, attributed to acquisitions and increased sales volume[878]. - Rumo's net sales increased by R$2,401.8 million, or 32.3%, to R$9,841.5 million for the fiscal year ended December 31, 2022, driven by a 17% increase in tariffs and transported volume[924]. - Compass's net sales rose by 57.0%, or R$7,160.8 million, to R$19,719.2 million, primarily due to the acquisition of Sulgás and Commit, contributing R$2,504.8 million, and tariff adjustments averaging 14.5%[925]. - Moove's net revenue increased by R$2,867.6 million, or 46.9%, to R$8,980.1 million, mainly due to the acquisition of PetroChoice and Tirreno, which added R$1,368.8 million, and a 35.0% increase in lubricant sales volume[926]. - Radar's net sales surged to R$834.6 million from R$31.5 million, primarily due to acquisitions of land management companies contributing R$576.9 million and a full year of consolidated operations[927]. Costs and Expenses - Total cost of sales decreased by 6.6% to R$28,549.9 million from R$30,556.8 million in the prior year[882]. - The cost of sales for Compass decreased by 12.9% to R$14,256.0 million, mainly due to reduced natural gas distribution volume[883]. - Moove's cost of sales increased by 5.3% to R$7,359.6 million in FY 2023, primarily due to the acquisition of PetroChoice and Tirreno, which added R$395.8 million to costs[884]. - Radar's cost of sales decreased by R$406.8 million to R$153.5 million in FY 2023, mainly due to reduced costs associated with real estate sales[885]. - Cosan Corporate's cost of sales fell by 61.7% to R$3.6 million in FY 2023, attributed to the sale of Trizy in March 2023[886]. - Selling expenses increased by 5.8% to R$1,350.6 million, while general and administrative expenses rose significantly by 43.8% to R$2,528.0 million[871]. - Selling expenses for Moove rose by 6.8% to R$1,145.0 million in FY 2023, driven by the acquisition of PetroChoice and Tirreno and a 21.7% increase in freight expenses[892]. - General and administrative expenses for Moove surged by 85.8% to R$645.6 million in FY 2023, largely due to the consolidation of PetroChoice and Tirreno's results[898]. Financial Results - Finance results, net showed a significant increase in net financial expense to R$7,897.1 million in FY 2023, up 53.1% from R$5,157.9 million in FY 2022[906]. - The total cost of gross debt decreased by R$3,270.3 million, or 38.9%, primarily due to a decrease in the average SELIC interest rate and the depreciation of the U.S. dollar[909]. - Income from financial investments and exchange rate in cash and cash equivalents increased to R$2,057.4 million, a 15.0% increase from R$1,788.5 million[910]. - The expense from financial investment on listed entities amounted to R$3,147.0 million, related to losses from the adjustment at fair value based on the market value of Vale's shares[911]. - Other charges and monetary variations decreased by R$253.7 million, or 10.6%, from R$1,927.4 million to R$1,673.7 million[912]. - Income tax expenses amounted to R$274.4 million for the fiscal year ended December 31, 2023, compared to an income of R$118.4 million in the previous year[913]. - The effective tax rate was negative 5.4%, lower than the nominal corporate tax rate of 34% due to the recognition of a tax credit by Comgás[914]. Debt and Financing - The total debt as of December 31, 2023 was R$56,904.7 million, an increase of 7.4% from R$52,987.2 million in 2022, primarily due to the issuance of senior notes[978]. - The company’s short-term debt as of December 31, 2023 was R$4,882.4 million, part of the total outstanding debt[977]. - The company reported a total debt of $2,451.1 million as of December 31, 2023, down from $2,641.7 million in 2022, representing a decrease of approximately 7.2%[1009]. - The company has debentures totaling R$1,596.9 million with an annual interest rate of 9.13% due in February 2029, an increase from R$1,523.4 million in 2022[1011]. - The company’s total liabilities for senior notes due in 2027 amount to $1,928.9 million, down from $3,587.3 million in 2022, indicating a reduction of approximately 46.2%[1009]. - The company has a total of R$1,208.1 million in debentures with an annual interest rate of 14.61% due in August 2025[1011]. Cash Flow and Capital Expenditures - The net cash flows generated from operating activities for the fiscal year ended December 31, 2023 were R$10,276.4 million, an increase of R$304.2 million or 3.0% compared to R$9,972.2 million in 2022[971]. - Net cash flows used in investing activities decreased significantly to R$4,303.1 million in 2023 from R$20,726.6 million in 2022, representing a decrease of R$16,423.5 million or 79.2%[972]. - Cash flows used in financing activities were R$4,516.6 million in 2023, a decrease of R$12,802.8 million compared to net cash flows generated of R$8,286.3 million in 2022[976]. - Capital expenditures for the fiscal year ended December 31, 2023, totaled R$6,268.0 million, compared to R$4,531.4 million in 2022[1030]. Market and Economic Conditions - Key trends affecting the company include general economic conditions in Brazil and globally, including impacts from geopolitical conflicts[1039]. - Potential inflation increases could lead to higher interest rates and reduced lending growth, affecting the company's operations[1040]. - Market volatility and instability may adversely impact the company's revenues[1040]. - Currency fluctuations and exchange rate controls could negatively affect international investor confidence[1041]. Regulatory and Compliance - The company has no off-balance sheet arrangements to finance operations and no subsidiaries not included in consolidated financial statements[1037]. - The company is not subject to any regulatory commitment to purchase assets as of December 31 for the years 2023, 2022, and 2021[1038]. - No new accounting standards have materially impacted the consolidated financial statements for the years ended December 31, 2023, 2022, and 2021[1043].

Group 1 - The recommendation is to buy Cosan (NYSE: CSAN) shares following the release of the 2nd quarter results [1] - The analysis is part of a broader coverage of Cosan's investment thesis that began on April 1st [1] - The analyst has over 5 years of experience in equity analysis in Latin America, providing in-depth research and insights for informed investment decisions [1]

Core Viewpoint - Cosan's shares have been negatively impacted by weaker commodity prices, adverse currency movements, and a complex business structure, leading to challenges in investor communication and capital allocation plans [1][2][8] Financial Performance - In Q2, Cosan's revenue increased by 15% year-over-year and approximately 8% sequentially, with Raizen showing 18% year-over-year growth [4] - Raizen's ethanol and sugar volumes rose by 19% and 26% respectively, while Rumo experienced a 29% year-over-year revenue growth [4] - EBITDA for Raizen declined by 29% as reported, but adjusted EBITDA was up 13%, while Rumo's EBITDA grew by about 49% year-over-year [4][6] Market Dynamics - The market for sugar and ethanol has become more challenging, with sugar prices dropping to around $0.177/lb and ethanol prices in Sao Paolo decreasing from R$ 3.08/liter to about R$ 3/liter [5] - Legislative efforts to increase ethanol fuel blend from 27.5% to 30% could drive a 4% increase in consumption, but progress has been slow [5] Structural Complexity - Cosan's complex structure and frequent changes in financial reporting make it difficult for investors to assess the company's health, particularly for retail investors [6] - The company has unwound its collar financing for its stake in Vale, converting 66 million shares into a direct ownership interest, which raises questions about strategic coherence [6] Long-term Outlook - Long-term revenue growth is expected to be around 3% to 4%, with EBITDA margins projected to improve to 13% this year and around 15% by FY'26 [7] - Despite significant reinvestment needs and low-margin operations, discounted cash flow suggests a fair value around $15, with an EV/EBITDA fair value above $17 [7] Investment Considerations - There is an argument that Cosan shares are undervalued, particularly with bearish sentiment already reflected in the share price [8] - However, the complexity of Cosan's corporate structure and capital allocation philosophy may deter potential investors from fully capitalizing on the value [8]

2Q24 Earnings Results August 15, 2024 Confidencial | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...