FS discloses its financial results for the last quarter of its fiscal year
Lucas do Rio Verde, November 26, 2021 – FS, a leading producer of corn ethanol, animal nutrition and energy, announces its results for the second quarter of the 2022 fiscal year (2Q22). The main highlights of the period were: Net Revenue of R$1,520.3 million, EBITDA of R$617 million and Net Income of R$125 million. The Company’s financial statements were drawn up in accordance with the International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB) and the accounting practices adopted in Brazil.
FS processed approximately 834.5 thousand tons of corn in 2Q22, increasing by 29.2% over 2Q21, driven by the operational startup of the expansion of the Sorriso (MT) plant, in February 2021. With this expansion, the Company reached an annual production capacity of 1.4 million cubic meters of anhydrous ethanol. The total production of anhydrous ethanol in the quarter was 366.7 thousand cubic meters, 32.9% higher than in the previous quarter.
Net revenue per segment
Net revenue from the ethanol segment totaled R$1,050.3 million in 2Q22, up by 158.7% over 2Q21. Another highlight was the 32.1% increase in sales volumes in relation to 2Q21, due to the start-up of the expansion of the Sorriso (MT) plant, which also boosted results for animal nutrition. Net revenue in this segment totaled R$305.1 million, 118.1% higher than in 2Q21. Higher prices for substitute products (soy and corn derivatives), combined with commercial initiatives and better product positioning, were other key factors for the increase in animal nutrition prices.
Net revenue from corn oil totaled R$62.7 million in 2Q22, increasing by 180.9% over 2Q21. Net revenue from Energy Cogeneration totaled R$17.9 million, increasing by 189.9% over 2Q21. Sales volume in this segment increased by 35.1% in 2Q22 over 2Q21.
Expansion plans based on sustainability
In November 2021, FS announced the construction of its third corn ethanol plant in the city of Primavera do Leste, in Mato Grosso. The plant requires an estimated investment of R$2.3 billion and will generate nearly 8 thousand indirect jobs during the construction phases and 500 direct and indirect jobs during its operation. Landscaping works have already initiated and the plant’s total production capacity, which is scheduled to open in 2023, will be 585 million liters of ethanol per year.
FS, which has the two largest 100% corn ethanol plants in the country, in Lucas do Rio Verde and Sorriso, in Mato Grosso, currently has a production capacity of over 1.4 billion liters of ethanol per year. With the inauguration of the Primavera do Leste plant, the Company is expected to become one of the three largest ethanol producers in Brazil, with a production capacity of 2 billion liters of ethanol/year. Its investment plans include three additional plants by 2026, all in the state of Mato Grosso, allowing it to reach a production capacity of approximately 5 billion liters of ethanol per year.
In 2020, FS was certified to join RenovaBio and issue decarbonization credits (CBIOs) and, in 2021, published six long-term commitments to society under the FS 2030 Sustainability Commitment. These goals are related to the United Nation’s Sustainable Development Goals (SDG) and in line with the Paris Agreement.
FS holds the second best Energy-Environmental Efficiency Rating (NEEA) for anhydrous ethanol and hydrated ethanol. FS is also the only certified corn ethanol producer that discloses primary data, including traceability of agricultural emissions from grain suppliers, and is aligned with the Green Bond principles, as confirmed by an assessment from Sustainalytics.
Also in 2021, FS announced the implementation of a revolutionary system worldwide: BECCS – Bioenergy with carbon capture and storage. The BECCS system will be installed at FS’ Lucas do Rio Verde plant. The carbon injection site will be located within a 5km radius of the plant, to be defined according to geological and seismic studies, with a depth of 3km and will be monitored during its use. Worldwide, there are currently 18 bioenergy projects using the BECCS system.
Investments for this project will total R$250 million, and it is estimated to eliminate 400 thousand tons of carbon, annually. By implementing the system, FS will be among the few global companies, and the first from RenovaBio, to have a negative carbon footprint. The Company’s goal is to reach 32 million Cbios issued by 2030 with this pioneer technology and the implementation of its expansion plan.
FS is the first Brazilian ethanol company to use corn in 100% of its production. The Company currently has two plants, one in Lucas do Rio Verde and another in Sorriso, Mato Grosso, and is already the largest producer of corn ethanol in the country, with a production capacity of 1.4 billion liters per year. In addition to ethanol, FS uses cutting-edge technology to manufacture animal nutrition, known by the acronym DDG (Dried Distillers Grains), corn oil and bioelectricity products.
FS prioritizes and constantly invests in sustainability. The Company is aimed at consolidating its sustainable development agenda and strengthening its long-term commitments to society and therefore adopts a set of actions defined for its six long-term commitments (FS 2030 Sustainability Commitment), created in line with the United Nations Sustainable Development Goals (SDGs) and the Paris Agreement for 2030. One of these actions is the implementation of the BECCS (Bioenergy with Carbon Capture and Storage) system, which will place the Company among the few global players, and the first in RenovaBio, to have a negative carbon footprint.
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