Sao martinho - Investor Relations Mobile



São Paulo, June 27, 2008 − SÃO MARTINHO S.A. (Bovespa: SMTO3; Reuters SMTO3.SA and Bloomberg: SMTO3 BZ), one of the largest sugar and ethanol producers in Brazil, announces today its results for the fourth quarter of 2008 (4Q08) relative to the 2007-08 harvest. The results are presented on a consolidated basis, in accordance with Brazilian Corporate Law, including the partial consolidation of 41.67% of Usina Santa Luiza and Agropecuária Aquidaban. The results for fiscal year 2007 are presented on a combined basis, since on March 31, 2007, São Martinho S.A. consolidated the results of Usina São Martinho S.A. as of May 1, 2006 (total of 11 months).

FY2008 and 4Q08 Highlights

On February 25, 2008, we announced through a Material Fact notice the request for the Company´s effective termination as a member of Copersucar, the sugar and ethanol producers´ cooperative for São Paulo state. The decision will allow us to sell our products in higher value-added markets.

Net revenue grew by 26% in 4Q08 in relation to 4Q07, driven mainly by the increases in anhydrous and hydrous ethanol sales volumes of 181.9% and 49.4%, respectively.

Adjusted EBITDA in 4Q08 grew by 11.2% year on year to R$ 62.6 million, with EBITDA margin of 27.9%, compressing by 2.7 percentage points versus 4Q07.

Sales volume (in TRS equivalent) in fiscal year 2008 grew by 11.8% year on year. This increase was not reflected in the same proportion in "cash COGS” due to our continuous cost-management efforts, with unit “cash COGS” declining by 7.3% versus fiscal year 2007.

In fiscal year 2008, investments in the Boa Vista mill Greenfield project totaled R$ 371,3 million. Approximately R$ 200 million will be invested in the 2008-09 harvest, which will advance the Company´s project to reach production of 3.4 million tonnes of sugarcane in the 2010-11 harvest.

In view of the current situation of sugar and ethanol prices, in the 2008-09 harvest the São Martinho Group will produce approximately 631,000 cubic meters (m3) of ethanol and 578,000 tonnes of sugar. Accordingly, approximately 64% of the sugarcane processed will be destined for ethanol production and 36% for sugar production. This production will come from the crushing of 11.6 million tonnes of sugarcane in the 2008-09 harvest at the Group´s mills.

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