The Company has a differentiated agricultural management structure, at the industry it is engaged, resulting in one of the lowest production costs of sugar and ethanol of the market.
This differentiation has, as main principles: (i) high units range, enabling greater fixed costs dilution, (ii) agricultural synergy among plants, generating greater efficiency in inputs and agriculture actives management, which counts for around 80% of the production costs, (iii) predominantly own sugar cane supply (high verticalization), (iv) one of the lowest average distances between cane filed- plant of the sector, among other factors.
Lower production cost places São Martinho as benchmark of the industry, enabling resilience in results and value generation to shareholders.
Currently, São Martinho has around 55 thousand hectares of own lands, located in highly valued areas. About 65% of these lands is located in countryside areas, São Paulo, and has high agriculture productivity, being relevant part of cane supply verticalization of the Company itself.
The other 35% of own lands are located in more urbanized areas in São Paulo countryside, in the city of Iracemápolis, and are also strategic to São Martinho, as they enable flexibility in keeping own cane supply in these areas, or develop potential partnerships with real state entrepreneurships in the region, always preserving the Company's core business.
In 2023, all the Company´s own lands were revalued by Deloitte Touche Tohmatsu with an amount of approximately R$ 6.3 billion.
The Company has a very strength financial structure. “Capital discipline” is the key term that permeates all the decisions taken, both for investments and debt and cash managements. In the last ten years, around R$3 billion were invested in the Company, and so, the sugarcane milling was more than doubled, increasing considerably the cogeneration of energy to the grid, besides the expansion of sugar and ethanol storage capability. São Martinho has one of the smallest debts in the industry, enabling a differentiated relationship with its creditors, reflecting the low cost of debt, when compared to other companies of the sector.
In October, 2019, Standard & Poor´s, international risk rating agency, upgraded São Martinho's global rating to investment grade (BBB-) and restated the brAAA rating in national scale for the Company.
São Martinho plant, located in Pradópolis, is considered the greatest plant of sugarcane processing of the world, and counts on its own railroad belt, connected to the mesh up to Santos Harbor.
This exclusive advantage of São Martinho enables greater agility in products flow for exportation, with lower costs, being a strategic differential in the sugar-alcohol industry.
Combined to that, São Martinho has carried out a series of investments in the last years with the purpose of increasing the storage capability of its main products, such as warehouses for sugar and tanks for ethanol. Currently, the capability of sugar storage is about 820 thousand tons and for ethanol is about 740 thousand m3.
São Martinho, since its IPO (shares initial public offer) which happened in February, 2007, is part of 'Novo Mercado', segment with higher corporate governance requirements among the companies listed in B3.
Since January 02, 2018, 'Novo Mercado' Regulation, after the approval from CVM (Transferable Securities Values) was changed, including new requirements to the companies listed in this segment enabling a more comprehensive follow-up of the Management decision process, being it by minority shareholders of by the market.
Besides being part of this list segment, São Martinho has internal committees and formal policies which support the Company´s Management and reinforce its governance structure.
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