Raizen said it will continue to shrink its sugarcane crushing footprint by selling assets as the company seeks an "optimal size," Chief Executive Nelson Gomes said Tuesday.
The announcement followed results that showed Raizen's net loss for the final quarter of the 2025/26 crop nearly tripled. Gomes told analysts on a post-results call that the company has already removed close to 20 million metric tons of crushing capacity from its portfolio - through sales or decommissioning - as part of a program to reduce debt.
According to the CEO, Raizen's divestments amount to 12 billion reais in aggregate. Of that total, 5 billion reais has been collected in cash to date, while roughly 7 billion reais tied to Argentine assets is expected to be received by the end of the crop year.
Gomes also estimated that the current crop season will see an additional reduction in investment exceeding 1 billion reais.
Raizen's Chief Financial Officer emphasized the company is maintaining adequate liquidity amid the restructuring. The CFO said the firm's cash balance remains well above the minimum needed for routine operations and reiterated that the divestment program will be carried out without eroding asset value, while supporting the company's deleveraging objectives.
The combination of capacity removals, realized proceeds and anticipated cash inflows from foreign assets form the backbone of Raizen's strategy to shrink its operating scale and strengthen its balance sheet. Management presented the figures in the context of the larger earnings update that showed a materially larger loss in the final quarter of the crop year.
Raizen's plan includes ongoing disposal activity and reduced capital deployment in the current crop season, with management framing those steps as necessary to reach the company's targeted operating size and to lower indebtedness.
Context and next steps
- Management reports already completed capacity reductions of nearly 20 million metric tons through sales and decommissioning.
- Divestments to date total 12 billion reais - 5 billion reais received in cash and about 7 billion reais expected from Argentine assets by the end of the crop year.
- Additional investment cuts of more than 1 billion reais are expected for the current crop season.