Tereos Internacional Falls After Annual Profit Declines 27%
Tereos Internacional SA (TERI3), Brazil’s third-largest sugar and ethanol producer by market value, fell to a five-month low after reporting a 27 percent drop in profit for the fiscal year that ended March 31.
Shares declined 0.7 percent to 2.68 reais at the close in Sao Paulo, the lowest since Jan. 16. The benchmark Bovespa index rose 1.9 percent.
Tereos’s net income retreated to 137 million reais in 2012 from 188 million reais in 2011, the company said in a regulatory filing after the market closed yesterday. Revenue rose 21 percent, to 6.9 billion reais.
The results were “in line with our estimates and the market consensus,” Fator Corretora analysts Rodrigo Fernandes and Hering Shen wrote in a note to clients dated today. “The decline in agricultural productivity affected [subsidiary] Guarani’s operating result negatively although this was partly offset by the rise in average sugar and ethanol prices.”
Tereos fell 1.5 percent this year, while the Bovespa lost 3 percent in the same period.
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