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Cosan Limited

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In the last six months, Cosan's American Depository Receipts (ADR) outperformed the industry. We believe that Cosan constantly strives to improve its production capabilities and services to capitalize on the growing sugar and ethanol demand. Its strategy of expanding its network of service stations and acquiring meaningful businesses aided growth over time. Its adjusted net income of R$188.2 million in 2017 (as against net loss of R$135.3 million in 2016) primarily came on the back of higher revenues, fall in selling, general and administrative expenses and lower financial expenses. For 2018, Cosan anticipates pro forma net revenues to be R$50-R$53 billion for Cosan S.A. However, the company is exposed to risks from geopolitical issues, foreign exchange variations, unfavorable weather conditions and mounting operating costs. Also, high debts might raise the financial obligations.

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