an S.A.(US:CSAN)2023-05-16 19:00Financial Data and Key Metrics Changes - Cosan reported a consolidated adjusted EBITDA increase driven by solid expansion across all segments, with net income for the quarter decreasing due to non-cash effects related to mark-to-market updates and tax provisions [7][9][55] - The company's leverage ratio improved to 1.7 times EBITDA, a reduction of 0.3 times compared to the same period in 2022, attributed to increased accumulated EBITDA and reduced net debt [9][62] Business Line Data and Key Metrics Changes - Raizen achieved record global income and adjusted EBITDA of BRL 15.3 billion, with significant growth in the renewables segment and sugar sales due to higher prices [19] - Rumo experienced growth in EBITDA and margin despite a decrease in transported volume, with a record volume achieved in April [20] - Compass reported a 36% increase in EBITDA compared to the same period last year, driven by strong performance across its natural gas distribution companies [20] Market Data and Key Metrics Changes - In Brazil, sales remained stable, but operational margins were pressured by increased product supply and inventory losses [5] - The land segment's EBITDA grew almost four times compared to Q1 2022, reflecting the consolidation of Tellus and Janus [21] Company Strategy and Development Direction - The company is focused on expanding its portfolio and maintaining operational excellence, with ongoing projects in renewables, rail, and gas distribution [6][19][30] - Cosan is actively managing its investments, including divestments from five gas distribution companies, to enhance capital structure and profitability [42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the macroeconomic environment, highlighting potential positive impacts from tax reforms and green investments [31][32] - The company is closely monitoring legal and regulatory developments, particularly regarding tax credits and provisions, to ensure continued growth and dividend distribution [34][55] Other Important Information - The company approved a dividend distribution of BRL 800 million, reflecting its commitment to returning value to shareholders [9] - Cosan's governance structure has evolved, with 50% of the Board now comprising independent members, including two women [9] Q&A Session Summary Question: Insights on Vale acquisition and time allocation - Management indicated that they are dedicating significant time to Vale, assessing the situation and potential value generation from the investment [12][23] Question: Update on projects and macroeconomic impacts - Management confirmed that key projects are on track, despite challenges in engineering capacity in Brazil, and highlighted the importance of ongoing discussions regarding tax reforms [30][31] Question: Impact of provisions on dividends and funding needs - Management clarified that the provisions set up are non-cash and will not affect the fundamentals of Comgás, while also discussing the company's funding strategy for 2023 and 2024 [34][46][67] Question: Updates on Compass and regulatory frameworks - Management provided insights into Compass's growth potential and ongoing discussions with regulatory agencies to replicate successful models from Comgás [64]