Normalized net income, excluding the gain on bargain purchase was R$ 22 million in 2023. Again, “other income” was a big part of this. Net income of R$ 692 million in 2023, representing a profit margin of 40%. Normalized EBIT without this accounting gain was R$ 298.3 million in 2023. This increase is due mostly to a large increase in “other income”, which is a one-time gain on a bargain purchase that is a recorded as income for accounting purposes, but is not a cash inflow. Gross profit of R$ 547 million in 2023, representing a gross margin of 32% in 2023, down from 52% in 2022.ĮBIT of R$ 969 million in 2023, up from R$ 735 million in 2022. R$ 1.7 billion in revenue in 2023, up from R$ 1.45 billion in 2022. As always, let me know what you think in the comments below! Interested investors can also look at São Martinho (Ticker: SMTO3) and Raizen (Ticker: RAIZ4) which are also Brazilian sugar stocks. The majority of Brazil’s sugar industry is private, including the country’s largest producer and exporter, Copersucar. I think it’s a market worth studying and Jalles Machado is a great case study to look at the industry They also have a robust domestic ethanol market. Your view of sugar prices is probably going to determine your view of Jalles Machado stock as an investment.īut again, my goal here is to draw your attention to the Brazilian industry as much as it is to highlight Jalles stock as a potential investment.īrazil is the largest producer and exporter of sugar in the world. The current valuation is mixed, reasonable by some metrics, expensive by others. Their current financials are decent but not great. They have 3 plants which have large installed milling and ethanol production capacity. Jalles Machado harvests over 87,000 hectares of sugarcane. My goal with this analysis is to put the Brazilian sugar industry on your radar by highlighting a pretty standard Brazilian producer. ![]() ![]() I don’t have an opinion, bullish or bearish, on the price of sugar. Given the current attention and price action in sugar, I wanted to cover a sugar company. I think it’s reasonable to say sugar prices are at an inflection point. The price of sugar has increased significantly over the past 3 years and is currently hovering around its highest price in over a decade. ![]() Sugar has received a lot of attention from investors recently. This edition will cover Jalles Machado, a vertically integrated Brazilian sugarcane producer.
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