São Martinho S.A. announced consolidated earnings and operating results for the first quarter ended June 30, 2018. For the quarter, the company announced crushed sugarcane of 9,508,000 against 8,739,000 a year ago. Sugar production was 406,000 tons against 504,000 tons a year ago. Ethanol production was 486,000 tons against 329,000 tons a year ago. Cogeneration production was 327,000 tons against 300,000 tons a year ago.

For the quarter, the company announced net revenue of BRL 757,184,000 against BRL 812,266,000 a year ago. Operating profit, before financial effects was BRL 192,401,000 against BRL 200,198,000 a year ago. Income before income and social contribution taxes was BRL 153,825,000 against BRL 160,911,000 a year ago. Net income was BRL 103,959,000 against BRL 116,873,000 a year ago. Net cash provided by operating activities was BRL 176,483,000 against BRL 125,107,000 a year ago. Additions to property and intangible assets were BRL 45,409,000 against BRL 44,244,000 a year ago. Additions to biological assets (planting and crop treatment) were BRL 166,484,000 against BRL 152,257,000 a year ago. Adjusted EBITDA was BRL 401,390,000 against BRL 475,340,000 a year ago, mainly due to the lower sugar sales volume and lower average sugar sales price, which were partially offset by (ii) the higher ethanol and cogeneration sales volume, with higher average prices in relation to first quarter of 2018, and the lower unit production cost for both sugar and ethanol. Adjusted EBIT was BRL 198,124,000 against BRL 273,193,000 a year ago. Cash income was BRL 157,827,000 against BRL 230,196,000 a year ago. Book EBITDA was BRL 395,667,000 against BRL 402,644,000 a year ago. Net revenue decreased 11.1% mainly due to the lower average sugar price and lower sugar sales volume. The reduction in Adjusted EBIT is due to the same factors that adversely affected EBITDA. Net debt as at June 30, 2018 was BRL 2,651,458,000 against BRL 2,462,768,000 a year ago. Maintenance capex was BRL 164,459,000 against BRL 152,911,000 a year ago, basically due to the higher investments in planting. Capex was BRL 205,984,000 against BRL 196,061,000 a year ago. Cash income per share was BRL 0.45 against BRL 0.64 a year ago.