Tridge summary
Even in the face of a challenging scenario for the 2025/26 crop, Itaú BBA concludes that the sugar and ethanol sector's mills are financially better prepared to face market fluctuations than they were a decade ago. According to the study, which evaluated 48 groups responsible for 53% of the milling in the Center-South, the sector enters the 2026/27 crop with an average liquidity index of 2.7x, double that of the 2015/16 crop, and leverage 51% lower, at 1.8x. This solidity reflects advances in governance, risk management, and access to more competitive credit.
Original content
The survey reveals that 54% of the companies have cash in excess of 1.5x their short-term debt, ensuring greater stability and EBITDA generation. The research also shows a consistent movement towards professionalization and restructuring: in the last six cycles, most mills have migrated to groups with better financial performance. Today, only one of the 12 mills previously classified in Group D remains in that category, indicating evolution in the sector's management. The study points out that the capital market's participation in the companies' debt grew from 13% in 2019 to 27% in 2025, while Itaú BBA increased its share from 14% to 20%. Even with the rise in bank indebtedness to R$ 161 per ton of sugarcane in the 2025/26 crop, driven by the fall in sugar, high interest rates, and new ...
Source: Agrolink
Would you like more in-depth insights?
Gain access to detailed market analysis tailored to your business needs.
Related market data
What to read next
Read more relevant content
By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes. To learn more about our cookies, please read our Privacy Policy.