CMAA’s UVT sugar and ethanol mill in Brazil PLANTATION REVIEW Operation in Brazil The Plantation Division’s sugar and ethanol operations in Brazil are held and managed through IndoAgri’s 36.21% stake in CMAA and Bússola. CMAA operates three sugar and ethanol mills in Brazil with a combined annual sugar cane crushing capacity of 9.7 million tonnes, whereas Bússola owns agricultural land. 2024 REVIEW Global sugar prices fluctuated between 18 and 25 US cents per pound, influenced by Brazil’s unpredictable crop performance due to severe drought and fires in key sugar cane regions, along with typical variations in global crop forecasts. CMAA crushed 9.3 million tonnes of sugar cane, compared to 9.45 million tonnes in the previous season, producing 700,000 tonnes of raw sugar, 368,000 m3 of ethanol and 400,000 MWh of electricity. Our share of the joint ventures’ profit was lower at Rp44 billion despite higher gross profit from raw sugar sales. This was mainly due to higher financial expenses and a one-off lease write-off. CMAA’s Bonsucro-certified production was 2.3 million tonnes of sugar cane, accounting for 46% of total cane production in 2024. This was a reduction from 73% in 2023 due to changes in Bonsucro standards, as sugar cane planted on pasturelands prior to January 2008 is no longer eligible for inclusion. 2025 OUTLOOK Global sugar prices are expected to be influenced by crop prospects and sugar production in Brazil, which will depend on ethanol parity, crude oil prices, Brazil’s biofuel policy (RenovaBio) and fluctuations of the Brazilian Real. Prices will also be impacted by developments in other key growing regions, in particular, India’s potential sugar subsidies, export volumes and biofuel policy. Amid a challenging economic landscape and high interest rates in Brazil, CMAA’s priority will be to optimise the sugar-ethanol production mix to maximise profitability. Additionally, it plans to expand its crushing capacity by one million tonnes to reach a total of 10.7 million tonnes in the 2025/26 crop year. This expanded capacity will allow us to optimise profitability at one of the mills and lower costs. Group Overview Financials Other information Sustainability and Governance Operation and Financial Review 18 Indofood Agri Resources Ltd.
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