Net revenues: US$ 979 mm
EBITDA: US$ 68 mm
Social investment¹: R$ 1.8 mm
___Company resources: R$ 1.1 mm
___Votorantim Institute: R$ 0.7 mm
1Amount managed by the Votorantim Institute. It does not include additional resources for initiatives to combat COVID-19.
One of the world leaders in orange juice production, Citrosuco started the 2019/2020 crop year (July 2019 to June 2020) with a 35% increase in the supply of oranges in the São Paulo belt. During the crop year, the volume of Brazilian exports increased by 17%. The drop in the price of orange juice affected the results of the company, which uses the US dollar as its functional currency. Citrosuco ended the crop year with net revenues of US$ 979 million and EBITDA of US$ 68 million, 16% and 54% lower than the previous year, respectively. This led the company to incur a breach of contractual financial covenants, which were negotiated with the lending institutions. The company’s established track record, together with the improvement in the competitive environment expected in the coming years, enabled this negotiation to happen without the need to prepay debts.
The COVID-19 pandemic, which began at the end of the 2019/2020 crop year, had a specific impact on the orange juice market. However, there were no relevant changes in Citrosuco’s supply, due to the implementation of a series of measures by the company, which prevented logistical restrictions. Demand remained stable in most markets and, in a few developed countries, it grew due to the recognition of the health benefits of orange juice, such as the strengthening of the immune system.
Despite uncertainties around the global economy caused by the pandemic, during the 2019/2020 crop year the company invested US$ 64 million in product development and efficiency gaining initiatives. This move reinforced the growth strategy and the pursuit of competitiveness in the long term, through the promotion of technologies applied to the production process, such as scanning, telemetry, connectivity and irrigation systems and the use of pesticides.
In the social arena, the company supported new initiatives to address the challenges imposed by the COVID-19 pandemic, aimed at the communities where it operates. With a focus on inclusion, diversity, education and professional qualification, Citrosuco maintained projects aimed at strengthening the quality of education and preparing youth for the workplace. Due to the pandemic, educational projects were adapted to a remote format with virtual classes, requiring re-planning and extra volunteer efforts. One example is Para Todos, a diversity program dedicated to promoting the inclusion of People with Disabilities (PWD) in different jobs within the company, from harvesters to business leaders, with support from different agents within the communities, in a movement that goes beyond meeting quotas. During the crop year, Para Todos included 414 professionals and advanced discussions and planning to include other minorities and create an increasingly diverse environment.
In line with the demand for a low-carbon and sustainable economy, Citrosuco operations reached approximately 60% renewable energy in its 2019 energy matrix. This achievement includes a joint investment with Votorantim Energia for the construction of wind farms.
Since 2017, Cistrosuco has audited 100% of its company-owned operations against sustainable production standards, including the Rainforest Alliance, SAI Platform and Fairtrade certifications. In 2020, the company committed to sustainable supply by joining the Sustainable Juice Covenant (SJC), a global initiative centered on the target of 100% sustainable supply of juices and ingredients derived from fruits and vegetables by 2030. At the end of the 2019/2020 crop year, approximately 50% of all production was in compliance with SJC’s sustainability standards. Similarly, as an evolution of the Trilhar Program, which focuses on improving relationships and promoting the social and environmental development of the fruit supply chain, Citrosuco entered into a partnership with the NGO Produzindo Certo, with the goal of promoting awareness, performing assessments and creating a social and environmental action plan in 100% of its fruit suppliers.
These initiatives illustrate Citrosuco’s sustainable way of doing business, which is summarized by the expression “much more than juice” and demonstrates how the commitment to sustainable development is part of products, people and the planet. In addition to orange juice, the company produces natural ingredients that support the global trend of replacing non-renewable raw materials with renewable ones, and serve different economic sectors, such as cosmetics, health and cleaning, among others, maintaining sustainability as a nonnegotiable value.
