Cosan S.A. (NYSE: CZZ ), a diversified Brazilian conglomerate, has reported its first-quarter financial results for 2024, emphasizing capital allocation discipline and a strategic focus on supporting contracted growth.
The company's CFO, Rodrigo Araujo, highlighted an EBITDA under management of BRL 7.1 billion, despite a net income loss of BRL 192 million. The call also detailed Cosan's approach to managing debt, dividends, and investments, including its stake in mining giant Vale.
Key Takeaways Cosan reported an EBITDA under management of BRL 7.1 billion for Q1 2024. Net income for the quarter was negative at BRL 192 million.
The company is prioritizing capital allocation discipline and execution across its portfolio. Cosan is focused on deleveraging, with a leverage target of 1.5 to 2 times interest coverage.
There is an emphasis on interest coverage, with plans for dividends inflow to match or exceed interest coverage outflow. The company is adjusting its stake in Vale, including unwinding a collar structure and potentially selling a portion of its stake. Cosan is considering the listing of Moove and Compass in the future and is open to bringing in strategic partners for projects.
Regulatory issues and CEO succession were discussed, with Cosan aiming to be an active shareholder. The company is not currently considering new M&A operations due to market conditions. Cosan is managing equity, dividends, and crop rotation at Raizen, aiming to maintain healthy crop rotation and .