São Martinho S.A. announced consolidated earnings and operating results for the first quarter ended June 30, 2017. For the quarter, the crushing increased 6.8%, going from 8.1 million tons to 8.7 million tons; the sugar production, 5% higher, 500,000 tons; anhydrous ethanol, 3% higher; and hydrous ethanol, 24% higher. And the main reason for to increase crushing and production of ethanol was the consolidation and full consolidation of the Boa Vista asset in the current crop year.

For the quarter, the company had an increase in revenue of 22.3%, BRL 709 million going to BRL 867 million, basically because of the price increase for sugar of 26% in reais; and increase in volume and prices of cogeneration, 34% increase in price and the volume, 12% increase. EBITDA, in line, 42% increase; EBITDA margin and adjusted EBITDA margin, 54.8%; EBIT amounted over 30%; and net income, BRL 116 million. Gross debt grew by 7%, reaching BRL 4 billion in June 2017. And cash was BRL 1.4 billion in June 2017 at a net debt of BRL 2.6 billion. Operating cash flow in the quarter was BRL 320 million and BRL 274 million is the working capital used in this quarter, which is normal for sugar and alcohol. Adjusted EBITDA was BRL 475.34 million against BRL 333.75 million a year ago. The improvement in EBITDA in the comparison period basically reflects the higher average sales prices for sugar and energy combined with the higher sales volumes of both products. Book EBITDA was BRL 402.644 million against BRL 277.772 million a year ago. Adjusted EBIT was BRL 273.193 million against BRL 176.702 million a year ago. Net loss was BRL 39.618 million against BRL 74.172 million a year ago. The company's maintenance capex amounted to BRL 155.3 million, increasing 18.4% from the previous crop year, mainly due to the effects from the 100% consolidation of Boa Vista Mill in results as of this crop year. Cash income was BRL 230.196 million or BRL 0.64 per share against BRL 102.065 million or BRL 0.30 per share a year ago. The improvement is mainly due to the Adjusted EBITDA growth in the period and the reduction in financial expenses, reflecting lower exchange variation. Net cash provided by operating activities was BRL 125.107 million against net cash used in operating activities of BRL 54.938 million a year ago. Additions to property and intangible assets was BRL 44.244 million against BRL 29.69 million a year ago.