Brazilian sugar and ethanol producer Raizen BMFBOVESPA:RAIZ4 is set to continue reducing its sugarcane crushing capacity through divestments, as the firm seeks its "optimal size," Chief Executive Nelson Gomes said on Tuesday.
Gomes said in a call with analysts, after the firm nearly tripled its net loss for the final quarter of the 2025/26 crop, that Raizen has already sold or decommissioned nearly 20 million metric tons of crushing capacity as part of a plan to reduce debt.
Raizen already received 5 billion reais ($967.21 million) from 12 billion reais in total divestments, Gomes said.
Company expects another 7 billion reais from Argentine asset sales by end of crop year.
Capital expenditure fell 27.7% to 8.6 billion reais in 2025/26; expects another 1 billion reais cut in 2026/27.
Raizen is the world's largest sugarcane processor and pursues an extrajudicial recovery. It aims to ratify its extrajudicial recovery plan by September.
($1 = 5.1695 reais)