Good morning, ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to SLC Agrícola third quarter of 2018 earnings conference call. Today we have with us Mr. Aurélio Pavinato, CEO, and Mr. Ivo Marcon Brum, CFO and Investor Relations Officer. We would like to inform you that this event is being recorded and all participants are being listened only mode during the company's presentation. After the company's remarks are completed, there will be a question-and-answer session. At that time, further instructions will be given. Should any participant need assistance during this call, please press star zero to reach the operator. Also, today's live webcast, both audio and slideshow, may be accessed through SLC Agrícola website at www.slcagricola.com.br in the Investor Relations section by clicking on the banner Webcast Third Quarter 2018.
The following presentation is also available to download on the webcast platform. The following information is available in thousands of BRL and in IFRS, except when otherwise indicated. Before proceeding, let me mention that forward-looking statements are based on the beliefs and assumptions of SLC Agrícola management and on information currently available on the company. They involve risks, uncertainties, and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions, and other operational factors could also affect the future results of the company and could cause the results to differ materially from those expressed in such forward-looking statements. Now I will turn the conference over to Mr. Aurélio Pavinato, CEO. Mr. Pavinato, you may proceed.
Good morning, and thank you for participating in SLC Agrícola's earnings conference call for the [fourth] quarter and fiscal year 2018. Let's turn to slide three, please. In our current strategic phase, we are focusing on four main pillars of opportunity. The result achieved in 2018 confirmed that this strategy is adding value for the company. On the high-efficiency front, we reached, as you can see on slide four, a record yield in soybean on the 2017/2018 crop year, and repeated the same excellent performance of the previous crop year in cotton. This level of performance was due to a series of operational improvement initiatives that we have implemented over the past few years. On slide five, you can see the strong expansion in cotton area that we delivered, in line with our strategy to grow in higher value crops.
You can also see on this slide the progress made towards a more asset-light business model, which is measured by the ratio of owned land to leased land. Lastly, on slide six, we show the advances made on the front of crop certifications and traceability, which is an initiative that adds value to our business and anticipates an important industry trend. Let's go now to slide eight, where I will comment briefly on the international prices of our main products. In our market, by the trade war between China and the United States, and by a reduction in agriculture imports by China, the scenario for commodities was pressured by concerns related to the uncertainties on world economic growth, which contributed to the natural volatility in agriculture markets. Cotton prices fell in recent months, mainly due to weaker short-term demand reflecting the trade war.
The short-term supply-demand scenario for the fiber remains favorable. However, given the significant production shortfall in the United States in the 2018/2019 crop year, and the fact that China stocks should end the cycle at their lower level in five years. Despite the weaker demand in recent months, structurally, we have observed growth in cotton consumption, with the fiber maintaining its share in the textile industry. In the case of soybean, as you can see in the pricing chart on slide nine, prices remained highly volatile throughout 2018. Despite the lower quotes in Chicago, the prices paid in local currency to Brazilian producers during the year remained above the level of the same period last crop year, supported in part by the premium paid to producers of international prices during the second semester of the year and by the weaker Brazilian Real .
Current prices in Chicago, which are considered low based on the country's production cost, should result in a contraction in planted area in the United States. in the 2019/2020 crop year, according to some specialized consultancies. Let's turn to slide 10, please. Corn prices were less affected by the trade war, given the low volume of trade in this commodity between the United States and China. In the current scenario, under which for the second straight year, global corn consumption is expected to surpass production, prices in global markets should tend to find support. Turning to the scenario in Brazil, production fell sharply in 2017/2018, by 17% compared to the 2016/2017 crop year, which provided higher local prices for corn. I will now pass the call over to my colleague, Ivo Brum, our CFO and IRO, who will comment on our financial results in the period.
Good morning, everyone. Let's go to slide 12, which shows some highlights from our income statement for the period. The operational improvement also supported record financial results for the year, including for the net revenue, which surpassed the mark of BRL 2 billion, growing 13% year-over-year, and for adjusted EBITDA from the operations, which ended the year at BRL 669 million, up from BRL 568 million in 2017. Another financial highlight was the second straight year of EBITDA margin of over 30%. Net income also surpassed an important market of BRL 400 million, growing from the level of net income from agricultural operations in 2017, and with a margin of 19%. Let's turn to slide 13, please. 2018 marked yet another year of the positive free cash flow, which came to BRL 208 million.
Contributing to this result was the receipt of the BRL 64 million from the second installment of the land sales made in 2017. Net debt, which is broken down on slide 14, increased from the end of 2017, basically due to the fact that the free cash flow generated was used to pay dividends and to calculate and conclude the stock buyback program. However, financial leverage remains very comfortable, with the net debt to EBITDA ratio currently at 1.4x . I will now pass the call back over to Pavinato, who will comment on the outlook for the next crop year.
Thank you, Ivo. Let's go now to slide 16. A large part of the soybean crop for the 2018/2019 crop year has already been harvested, and the condition points to exceeding the initial projection in terms of yields. The planting of the cotton first crop and second crop, and corn second crop, has already been concluded, with the crops presenting excellent development and excellent production potential. Moreover, as you can see on slide seven, we have made substantial progress in selling our production, obtaining price levels above the current costs and at the same levels of last crop year. Considering the good potential of the crops, the formation of costs, and the sales prices, we expect to maintain margins at high levels. Thank you. We are available for questions.
Ladies and gentlemen, we will now initiate the question- and- answer session. If you would like to ask a question, please dial star one. If at any point your question has been answered, you may remove your question from the queue by pressing the pound key. Thank you. This concludes today's presentation. You may disconnect your line at this time, and have a nice day.