Sucro Limited (SUGR) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone, and welcome to Sucre Limited's fourth quarter and full year 2025 earnings conference call. Today's call is being recorded. Joining us are Jonathan Taylor, Chief Executive Officer, and Stefano Dianello, Chief Financial Officer. At this time, I will turn the call over to Jonathan Taylor. Jonathan, please go ahead. Thanks, Operator, and good morning, everyone. Before we begin, I'd like to remind listeners that management's comments today may include forward-looking statements. Please refer to our filings for a full discussion of the associated risks and uncertainties. 2025 was a challenging but ultimately very productive year for Sucro. Across the business, we faced meaningful margin pressure driven by lower sugar prices, a volatile tariff environment in the U.S. and structural changes such as the elimination of the US specialty sugar quota. These dynamics impacted physical supply chains and pricing across both conventional and organic markets, and in many cases, limited our ability to fully pass through costs. At the same time, the year clearly demonstrated the resilience, flexibility, and strength of our business model. We increased volumes significantly across our network, particularly through wholesale trading and origin flows, and continue to optimize our integrated platform, balancing refining, trading, and logistics to capture opportunities wherever they emerge. Operationally, we also made substantial progress. We reduced SG&A and interest expense despite higher activity levels. We improved working capital efficiency and reduced balance sheet intensity. And we continue to execute on two major refinery builds. All of this was achieved while remaining focused on free cash flow generation and disciplined capital deployment. In short, 2025 was...