Brazil · Delayed Price · Currency is BRL SLC Agrícola Earnings Call Transcripts
Fiscal Year 2025
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Record revenue and exports were achieved, with strong operational and financial performance. Expansion in planted area, robust hedging, and disciplined capital allocation position the company for continued growth despite input cost volatility and geopolitical risks.
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3Q2025 featured record revenue and EBITDA, strong soybean and corn yields, and a strategic farmland monetization and irrigation partnership with BTG Pactual-managed funds. Net debt rose due to investments, while a new share buyback program was approved.
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Q2 2025 saw record revenues and crop yields, with net revenue up 37.8% year-over-year and strong operational performance across soybeans, corn, and cotton. Net debt increased due to strategic land acquisitions, but gradual deleveraging is expected. Expansion in acreage and irrigation is planned for 2025-2026.
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Q1 2025 saw strong revenue and profit growth, driven by record soybean yields and expanded planted area, despite higher leverage from recent land acquisitions. Input costs declined, hedging advanced, and dividend payouts remained robust, with stable outlook for margins and area growth.
Fiscal Year 2024
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Net revenue declined 4% year-over-year to nearly BRL 7 billion, with adjusted EBITDA at BRL 2 billion and a 29.4% margin. Planted area expanded 10.6%, and a major acquisition will add 96,000 hectares. Dividend payout remains at 50% of adjusted net income.
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Q3 2024 saw stable revenue and strong operational performance, with record cotton yields and expanded planted area for 2024-25. Adjusted EBITDA margin was 28.4%, net debt/EBITDA at 2x, and cost per hectare is set to decrease. Weather and FX remain key risks.
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Q2 2024 saw lower net revenue due to weak soybean prices and volumes, but cotton revenue surged 73%. Land expansion added 60,000 hectares for 2024/25, and cost per hectare is expected to decline. Ongoing share buybacks reflect undervaluation versus land assets.