Good morning and welcome to our earnings release, first quarter 2024. With you, Felipe Marques , CFO and Investor Relations Officer at Boa Safra. We'd like to let you know they'll be listening to our teleconference. Right at the end, we will start our Q&A session, and during the question and answer, we'd like to ask you please to submit your questions through our webcast platform. You have the selection of the slides. I'd like to pass the floor to Felipe, who will start the presentation. Felipe, over to you.
Good morning.
Many thanks, José. It's a great pleasure to be here with you. Starting 2024 and, after the conclusion of our homework, and we'd like to start talking about this group. Let us move to slide two. I would like to just recap a little bit of the company. We have new shareholders in the company. Boa Safra starts 2024 as clear number one with regards to soya seeds. We have a very wide portfolio, more than 70 cultivars of soya. This year, 100% being served, 100% of our national territory being served. The past year, 70%. Now we started with the south. We're actually consolidating Boa Safra as a national, nationwide company. Our seed is high tech. We offer the best of technologies in the market. And we're going to be showing you all that in the next slides, our synergy and our portfolio with those seeds.
So we show very robust results in the very beginning of this year, and the momentum is definitely positive in our portfolio with the new seeds and our strategy with the units in the best regions of the country and our distribution centers to meet the needs of our clients all over the place in the national territory. Now let us have a look at the LTM of the company. Of course, it still operates based on the season of the year, and we always have to pay attention to the previous two years so that we can mitigate that seasonal variation. Those 12% of our operation, the LTM and the adjusted revenue, principally because of the minor shareholders. And of course, that is with regards to 2023 and principally with regards to income tax. Now, in slide three, we would like to highlight our quarter.
We always joke about the fact that the first and second quarters are not very strong with regards to the results due to the fact that there is a variation throughout the year, but that is actually the time of the year that we work the hardest. Most of the results that we have in the second semester is due to what we plant on the first and second quarter. This is why those are the most important components to the company. And one of the highest aspects of this quarter is our order backlog. So we have here a record. We never passed BRL 1 billion in our first quarter. Now we have BRL 1.28 billion here in the first quarter this year with a growth of 7% if compared to the first quarter 2023.
This is actually a milestone to us, especially in such a year with the growers making decisions in the moment, in the last minute for everything because they're taking longer to trade their crop. So we can see here that 50% of the crop is being sold. So the grower doesn't sell everything. They don't buy the inputs to the new crop. So this growth 7% in such a scenario is, as a matter of fact, something that shows how robust we are overall. Now, with regards to other seeds, in the first quarter, BRL 29 million. This is the revenue of the seeds. So we're very happy to expose those results. That shows, of course, the potential of mitigation of the season variation of the company because most of all other crops are the second crop. So they're actually an extra to soya.
So we're adding results with the invoicing during the first quarter of the year, which mitigates the season variation. So that is showing how important are the seeds that are present in our portfolio, just adding to the results. And this is why we're dedicating so much more to other crops. And we have BRL 2 billion and more with the CapEx that has been approved to the company. Rather than BRL 40 million to 2024. Part of this CapEx is under implementation. So we're talking about the new distribution centers in Balsas and in Cascavel. We had announced that at the beginning of those works. So we can see that the strategy of growth of this year is, of course, regardless of the whole thing that we had in April, we managed to capture BRL 300 million in such a varied market.
There are several moves that were happening in the international market, the rates and, of course, the war in Israel and so on. We show that we kind of in a window during that week that we changed the follow-on. So that shows how much we are able to leverage resources in such a difficult situation in the market. So that places us in a very relevant position in the market. We believe that 2024 is challenging here, of course, and we are already showing to you very relevant results. And BRL 1 million will be actually in our cash for the results of the second quarter. There is a boom of liquidity in the company, which is much larger than we are already proving on the first quarter. Now, in the following slide, we can see a little bit of our history.
Of course, we are talking about May 2024, but we are working at full blast. We have our new two new centers under construction. We started with 140,000 big bags. This is installed capacity with all the investments that we had in 2023 with a growth of 20% of our installed capacity. We already have this installed capacity. This is the best of the moments to treat the seeds. So, yes, of course, we are a little late because planting was a little late and also that was causing some sort of delay. But when you when you talk about treating the seeds and, of course, in this case, grains as a whole and seeds as a whole is a little bit late. Nevertheless, we are already using this capacity of the company. We're ready for 240 million big bags. We also have forage stored.
So only in 2024, we have beautiful results with two new TSI equipment. This is part of our new distribution standard of the company. So those distribution standards will also count on TSI equipment so that just strengthens our presence with high tech seeds. Now, we have a good map on slide five when we talk about the most important aspects of the company. This is something that we keep talking about. Pillars of the company are one strategy, one which is increased sales volume. So produce seeds at large scale in most important regions of the country. We also have a new strategy, which is the use of the high tech seed.
So we are able to deliver high value-added seed to the grower, and we are here talking about the TSI, the treatment of the seeds with the presence in the most important regions with a new distribution centers in the market. So that shows that the investment is being done with that strategy in mind. And we expect to conclude those works on the second semester. We will add even stronger capability to us. These were things that were expected to be ready in 2025, but because we started early with our team and our engineers, it really made possible for us to be able to use those two new DCs or distribution centers. They are not even within our installed capacity. Actually, it is additional installed capacity.
With regards to revenue diversification, we are showing that those 30 million seeds extra are really helping us on the optimization of our portfolio. Now, the strategy four, which is mergers and acquisitions, you can see that the market is, there's less liquidity that can be translated into good opportunities to the company. So we can identify strategies that will strengthen our growth, which is either one, two, and three. M&A is ready to drive the growth plan. And in this strategy one, two, and three, we are paying attention to the opportunities that exist in the market, think that they would leverage value to the company and to our shareholders so that we can analyze and proceed with those operations. Now, slide six is basically our thought of the country.
You can see our new units, new distribution centers that are under construction with BRL 140 million invested, 112,000 sq m in refrigerated warehouses. Our strategy, we see strategies one and two quite present on the map, which is to grow distribution centers and storage capacity. We can see that this slide shows our performance as a whole in the south. Of course, here we still don't have any industrial unit. We have partners in the south, which is totally different from the model that we use in the center and the west of the country. We are starting in the south without inventory. That shows there is a great opportunity for us in such a challenging year for those who produce seeds. Well, principally in the south, our production is still minor. Of course, that would not cause any relevant impact for the company.
Now, we are actually working with partners, and that would basically decrease the impact, principally considering the strategy that we have witnessed that it is happening in the south. As a matter of fact, this is the most traditional state for the production of seeds. Perhaps Rio Grande do Sul is state number one. We were expecting, well, when the rain season started, 20%-30% of the areas had been harvested. That was the estimate. So perhaps, the seed market as a whole, since Rio Grande do Sul is a very important seed producer in the country that might impact the seed market because of those rains, because of the quality of the seeds. It might be the case that the quality of the seeds coming from that region is not upholding it.
Now, slide seven, with regards to our financial performance, some of the highlights. LTM to BRL 1 billion. So 12% growth if compared to 2023, the same time of the year. Our net income, there was a drop, of course, first quarter. So that is basically this strategy, something that I mentioned in the beginning of the year. We sold more grains, and they were not turned into seeds that we could sell that in the first quarter. That's why we have more grains in 2024. That is quite minor. This is why there was a drop. There was a more diligent way of preserving working capital instead of carrying grain inventory to the following year. This is why there was this drop in the income coming from grains. And of course, we postponed the treatment of seeds because of the weather. We're talking about the discharge.
As a matter of fact, there was more postponed to the first quarter. We didn't have the opportunity of doing that. Actually, the seeds were not treated. So this is very important with regards to austerity and also considering the working capital of the company. Now, the EBITDA, so we adjust the margin. We adjust, consider the income tax 2023 because of the benefits that the company had. And it was not 100% 2023 OpEx. Companies and also the minor shareholders. We have the participation of other companies, and we exclude those from what it is, as a matter of fact, related to the results of Boa Safra. Nevertheless, we show our LTM 419% and the results of the company and more than 50% moving from 2023 for the first quarter to a positive of BRL 80 million .
With regards to the debt, the net debt of the company, this is something that it is important to highlight. Today, BRL 98 million of net debt of the company. The first quarter 2023, it was BRL 44 million. Now, there was an increase of 120%. But remember, we paid BRL 85 million in JCP the first quarter. So it was a very important remuneration to our shareholders. But still, with all the growth that we logged, it was a shy growth because of the pay that we provide to the shareholders. So we have in a consolidated result, our net debt is BRL 98 million. Remember, when we talk about consolidated, we have to remember that Fiagro is not there. And because of the fact of this consolidation with regards to the production area, this is a very important point to highlight. There was quite growth about 57%.
We went to 227,000 hectares from 144,000 hectares. So that is a challenging year for producers. In our strategy with utilization, which is much higher from our installed capacity to 200,000 from 140,000, we grew a lot, principally with regards to seed sales. This is a very positive strategy in such a difficult year because of the amount of rain that we had during the crop season and the harvest season. And of course, we are producing much less, thinking about the potential that we would have expected for the country. We have one. So that gives us a buffer to us to make sure that we have a wide portfolio with all the varieties that we want to have for us to be able to put all that volume in our production units, our 240,000 big bag capacity.
Slide eight, you can see the importance of the diversification with new crops. This is not actually a pilot project of the company. This came to stay. You can see the figures, and they prove themselves. This is the reality of the company. More than BRL 29 million of results in the first quarter. So no shadow of a doubt, this is a great contributor to the results of the company during the first quarter and the optimization of our assets. That helps us optimize our distribution centers. We have our business unit, and so that proves the capacity of generating value. The KPIs, the addition of new crops to our portfolio is just a positive thing. No shadow of a doubt, the quarters are the very important. So you see for seed almost 14 million. That shows that our strategy is solid.
Using those seeds that are in our portfolio, this is our strategy number three, the one that I mentioned before. That strategy helps us move with those crops that show great potential of growth. So our market share isn't too shy, but then there is huge potential for growth with them. slide nine. I'll just go back to our order backlog. This is one of the most important points. M ore than BRL 1 billion last year, first quarter BRL 157 million. Yeah. So you have a 7% growth. Remember, our backlog is invoiced, and then it becomes revenue in the second and third and the quarter in the fourth quarter when the rain starts and when we start planting. So remember, seeds are applied. You have to have ideal temperature, humidity, so that we can prove that with our distribution standards that is guaranteed with our good warehouses.
So our client receives that product that is high quality. This is why we have no possibility of anticipating sales for the planting season. We guarantee high-quality seeds. We guarantee high-quality seeds. This is the synonym of guarantee of a good season. Slide 10 shows once again our adjusted net profit. As I mentioned before, we have the LTM 82% growth, BRL 159 million, and EBITDA, adjusted EBITDA. You can see also the BRL 325 billion in the gross profit. So EBITDA, adjusted EBITDA is most important to our team. Really, we're smart in getting the details of the market and the characteristics for us to really make use of the best way of reflecting our possibility of cash generation. We consider all the details in their several details that would be receivables, payables.
So we remove those details that are on balance, so the derivatives increased derivatives to make sure that we would have operational positive results. There is a new technology for the calculation of the adjusted EBITDA to prove to you that nobody needs to be calculating things after things. So we actually try to show how we understand is the best view in terms of cash generation to the company. We show that 32% growth when you analyze the LTM and this quarter. Q3 has a drop compared to the previous year because we removed that issue related to stock, 15 million. We can see that we remove that part. This is a good methodology when we analyze the EBITDA of the company. And this is what matters in here.
We're going to be showing how this evolvement of our results at Boa Safra will perform in this and along this year. Slide 11 shows that even before the follow-on strategy, we were looking for liquidity. 2024 would be a challenging year. Of course, I, I myself expected it too because in 2023, I always said the same thing. And now, once again, 2024 is showing to be a challenging year. This is why we wanted to have high levels of liquidity. You can see there's 130% in terms of cash, cash equivalent and CVM. And of course, the following quarter and the results, that shows even a stronger strategy with regards to our evolution in terms of our consolidated gross debt, 130%. Of course, we add the same proportions of growth.
Now, with regards to our strategy for the investment and the net debt in the adjusted LTM. This profile is something that we take pride of. So the rates that are fixed, so that proves the possibility of maximizing the equity of the company and provide good capital allocation. The consolidated net debt, we went from BRL 44 million to BRL 98 million. So it seemed to be healthy. And of course, we didn't consider here the JCP payment and the net debt and EBITDA also adjusted. We can see that we have a very conservative approach from 22 to 0.36 only if you compare the first quarter 2023 to the first quarter 2024. Now, this last slide shows our commitment with our shareholders. We want to deliver results with regards to our IPO process. We have always considered the result, as the base is 2020.
We moved from that adjusted net profit, and we delivered BRL 246 million after those three years. We're talking about 3.7x growth of the net profit of the company since the IPO process, BRL 160 million . So when we had that chart. Now, with a new follow-on of the company, we move from this base of BRL 246 million in adjusted net profit and capturing, now we are looking forward 2024, 2025, 2026. So it is very important to consider three years in the company. We like this approach. And I think that this follow-on has this perspective of checking 2024, 2025, 2026. And we are just rendering accounts of the company. And we want to show the capacity of capital allocation.
This also shows the results in terms of growth, in terms of installed capacity, in terms of biotechnology growth and TSI, and also our growth of market share and the net profit per big bag, per installed capacity. This is actually the goal, the main goal of the company, no matter what operational or financial result. Things translate, of course, in the derivatives and the working capital. Of course, depending on the strategy of paying before or the raw material or production costs, the payment in advance. Those are things that communicate among themselves. You can see that in the end, and in this regard, the bottom line is that we want to look at the adjusted net profit and the big bag. This is the main metric.
This is what we always be using to disclose to the investors the capacity of generating results when we increase the installed capacity of the company. You can see now the LTM of 2024. As we evolve during the year, we're going to be showing you the figures for 2024. We're going to be able to have a perfect comparison in terms of our growth and results compared to the previous years. Yes, I'm going to be calling back to the mic, José. We're going to be moving now to the Q&A session.
Thank you, Felipe. Now we will be starting the Q&A session for investors and analysts. Please submit your questions to our webcast platform. First question by this Ellis with whom?
She says, congratulations on the results, and asks the following question: This quarter, there was a growth of 7% of orders if compared to the previous year. Could you please make a comment? How much of this growth is price? How much of this growth is due to volume?
Ellis, thank you for providing your assistance and also for being present during our conference. Great question. As a matter of fact, we believe in a little bit of the strategy of the company. We would like to go into this detail of what it is volume, what is TSI, what it is biotechnology, is price. But I can tell you in 2024, we have a very similar situation to 2023 despite the fact that there was a little bit of drop in the commodity price and credits.
There is a little pressure because of the drop of the price of the seeds. But there is a downward pressure with regards to the price of the commodity. But as I mentioned, this is a more complex year when it comes to seed production. This also, there is also a situation of supply and demand in the market. There are changes in the dynamics of pricing. I would like to share this connection with you, but volume and price, we're going to be waiting to make a comment about that at the end of the year. So this, order backlog shows how robust we are in terms of what we can expect for the second semester because it was postponed in the purchases of the inputs and defensive fertilizers. So that gives us the more robust support volume. That is something that we've seen in previous years.
There were several question marks from the market when there was the drop in the price of the commodity in 2022 and 2023. Of course, we thought that the seed price would drop. Then the other big round there, what happened? The big bag went up. Despite the fact that the same seed had a drop in price, we delivered higher technology. We delivered seeds with more technology, biotechnology, and the seeds that were treated and more productive cultivars. That shows that in 2024, the grower, in spite of the fact of the situations, the grower wants productivity. The seed is the main protagonist when you talk about productivity, even with margins different from what we had in 2022, more restricted margins.
Despite the fact that there was a little improvement, overall from the end of the year to now, the productivity, the grower wants to have such a good quality seed to guarantee good margins in the end. There's no change. We don't see that growers want to save money when they buy seeds because they are going to put the activity at risk. That shows that we guarantee. So this is something that happened between 2023 and 2024. This is something that I can share with you. So base it on the perception and that we have here back in the company. The second question from Ellis is in the last 12 months, you can see that there is a relevant growth.
But with the drop in the price of soya, can you make a comment with regards to perspectives with regards to cost to the end of the year? Well, Laryssa had several fronts, where we can grow for us to be able to control our costs. And also to leverage big results. Yes, our installed capacity is 24% growth. That is significant. So we can dilute cost and expenditure. So that translates in sales in the end. Another thing, we added different seeds, 49 million just in the first quarter last year, 6% of our net profit from all of the businesses of the company. So that shows how we can optimize the assets that we already have in our portfolio. And because of the scale that we have this year, we show the potential of diluting costs and at profit.
Of course, that will depend on the dynamic of prices and how we can translate that into sales in the end of the story. But the steps in our strategy for us to look for the vast results for our assets, these are steps that have been taken in this very expensive year when you compare those two points, principally with the new TSI equipment. So we have 15 pieces of equipment this year. So that shows the capacity of delivering the best of the high-tech seeds present in the market to our clients. So these are very important steps. And during this year, we're going to be seeing how much more we are going to deliver in terms of profitability of the company. Thank you for the question.
Alejandro Lima, an investor, asks a question with regards to perspectives of growth in the market, international market. He asks about Africa. How would you grow in Africa?
Well, good catch. Alejandro, many thanks for your question. Yes. This is the question that we have been asked a couple of times. Yes. Synergies, we have great possibilities. It is not under our radar, making sense outside Brazil at this point in time. But what we might have is some seeds that are exported. And that, of course, generates some opportunities. But those are very special situations, principally all the crops as well. We are actually talking about exporting activities other than having CapEx or business units outside Brazil. This is actually not in our plans at this point in time.
We're just assembling more questions. Please hold. Yes, I will just ask two questions. With regards to credit, what is your assessment? What about the late periods? Would that rate affect prices?
He believes, yes, considering the price of the bag and the fact that Mato Grosso would be buying more seeds. Hope you do be able to talk about it.
Thanks for the question. Well, first thing, with regards to the credit assessment, one year will be difficult because of the liquidity. It's good to see. However, I think in the end, it was a positive situation despite the fact that there was a lot of a little bit of exaggeration with regards to the credit for 2024. This is a personal opinion based on what I spoke. I was talking to investors. Everybody was explaining who we were actually in fighting behind the financial market and also companies that provided credit in the market. That was good because everybody is worried. Everybody is kind of anticipating things. That was good. It makes people wake up.
This excessive concern was positive in the end. Everybody was quite wide awake and prepared to be able to receive those accounts this year. Yes, there are some delays in our market, as a whole. Why? Because the growers didn't sell their crops. So they asking for time so that they can pay for their obligations. Government also contributed somehow because we had less, in the end, we had a little less soya compared to the previous year. So there is some sort of delays. And the government is providing some help for them to do so. The grower has to have good credit. They have to be in time. They cannot have anything overdue or there are no delays because otherwise, if they are in arrears, they can renew their credit with the banking system. Well, the system depends on a credit.
The grower sees that they need to have a good name in the market because the cost is becoming increasingly more relevant when it comes to the activity. So there must be always a score. So that delay is just a few days. I don't think that this is really significant as it happened in the past. So we are okay at this point in time. This is not the best moment in the market. So for the small and medium grower, this they show a totally different performance. So our portfolio is positive. And I see that play in a positive way. Of course, there is a stress because of the liquidity of the market. And of course, in our case, this could be translated in good opportunities because of the high level of liquidity that we have in the company and the follow-on.
We know that in a more stressed market because of liquidity. I'm not talking about a bad day, a bad day. I think that this, in all, can be very positive. As we mentioned in 2023, threats might become opportunities. And actually, this is how I can use that is what's happened in 2024. With regards to late orders, Mato Grosso, if they're going to buy more seeds or not, I have not much I can tell. Yes, of course, they offer. They suffered a bit because of the offer of the seeds and because of the drop in the activity. And in that case, it was more expressive. They might produce less seeds. We have only one unit in Mato Grosso and the smallest unit in the company. So our impact there is less significant if you compare to the case of other competitors that produce in Mato Grosso.
What I see with these late orders is that, yes, there is that pressure for the down payment. This is actually happening a little late. Growers are buying late. There's less money in the system for the down payment. Yes, that might generate some increase in our working capital of the company. Now, of course, that change would be translated into price. So if they pay late, I'm going to charge them more. Or if they pay earlier, they would pay less. So we're talking about another aspect, operational results and financial results. They're always communicating themselves. This is why we have to check the profit with big bags. So depending on where the result comes from, and this is the way how we make the decisions, how we can pay more for our installed capacity.
Thank you very much, Felipe. Two questions from Laura with regards to our order backlog. She's asking, other companies mentioned on the late trade of inputs. And the Boa Safra also refused that. Can you give us more details in the sales? And what about April? What we can expect from now on?
Thanks for your question. And also, from Guilherme, as a matter of fact, Santander usually adding value to our conference. With regards to our growth, what's happening in the present, of course, this order backlog being late. Of course, you have to compare to other companies in the sector. You can see that those 7% really showed the difference, in a positive note. Yes. We have also to understand what it is that decides to make late or the risk of not buying it at all. So this is something that we should consider in the market.
So each company has a different characteristic, but there's no lack of demand because of the seeds that we have. No, as a matter of fact, we see that our estimate and the planted area is going to be less for this year. Of course, we can see that soya fields, basically the same as the previous year. Perhaps, as a matter of fact, they're going to be, well, larger. There'll be more area planted. Let's see what the coming weeks bring to us. Now, postponing a decision doesn't mean that they won't buy from us. So remember, this being late, but they will make a decision. So I think other companies in the sector, of course, each company has a different characteristic, a different portfolio.
So perhaps that would help you analyze why the grower will not buy from a certain company because they won't use the same product that they used the previous year. So this is something that it is more related to portfolio, but it is not the case in our company, in our understanding. It is just this in our understanding. It's just, we are just postponing the decision, but it is going to happen anyhow. Principally, when we go see the figures on the second quarter, that will give you a good ground because the producer or the grower won't be too late to make a decision on the purchase of the seeds by the end of June. At this moment, we are going to be really round with this issue regarding postponing the purchase. With regards to bad debt and the relation with the sales, yes, good point.
As I mentioned before, there are some delays in terms of our portfolio, but nothing that really worries us. Sometimes, exchange of seeds or some adjustments, but default change or pay. Nothing to worry because principally, if you analyze the second quarter, we're going to have a very good passing understanding of our portfolio, BRL 485 million that we have at the end of December. So we're going to be sure. With regards to changing sales, as you quoted, what we have is there was some movement, some sale of the seeds in January. Historically speaking, we didn't have that. And of course, we had the issue of replanting. There's some stock that was dedicated to seeds, but they were replanted. That was actually related to the late planting time. That was just a special to this first quarter.
Something that we hadn't seen that in the past. Now, with regards to April and on, nothing that really worries much us. Principally, with the results in June, we're going to be able to show a good picture of our receivables.
Yeah. Two questions from Audi Capital. First question, how much other crops will be present? How much of, what is the importance of other crops in 2024? And the second question, how do you see the increase in the adoption of biotech seeds? And what would be the impact of the increase in cost?
Thank you very much, Raul, for your questions. You were actually going straight to the point. Well, because of strategic issues, I cannot be very objective with regards to what you just mentioned. But as we mentioned before, other crops, we are actually putting a lot of efforts to other crops.
This energy, the company is dedicating efforts. A lot of energy is being dedicated to soya. It's growing. Yes, but it is something that we already consolidated in the market. It's clear. And it is happening. And it is still and will be our main activity and source of revenues. Other crops have tremendous potential. I'm going to be checking the results. Our energy is being extremely high. It's totally dedicated to increasing the number of crops. The adoption of biotech, y es, we are working hard on it. And there are new biotechnologies being adopted in the market with the new diverse results, productivity, and the protections, additional protections that are granted with new biotechnologies. So there is an appearance. We are going to be checking quite soon on the results. A biotechnology is being embraced in microorganisms.
We are well positioned to be able to provide the new material that is on demand in the market.
Thank you, Felipe. From BTG, Manuel asks, can you please make a comment about receivables and, of course, the distributions for the last first quarter? How can we interpret the volume. What about the investments in the first quarter? How do you see the results in the end?
Thank you, Henrique. Your question, of course, how the follow-up that BTG provides to us. I actually mentioned what you just asked in the first part of the question during my presentation. Nothing that really worries us at this point in time. Second quarter, we're going to be showing the results of the company. There are several layers of protection in our portfolio. So actually, we didn't need to use any of those. Those delays are very minor.
We didn't have to use any of the guarantees that we have. No, no insurance, we used. So we are okay. Receivables in May, very important. Yes. Nothing is really showing that there will be any relevant fact of things that are not received. With regards to the order backlog, 7% year-on-year, the volume, the contribution, price, implementation of new technologies. We don't want to open this information due to strategic approaches. But we are going to be disclosing that throughout the year. There is a drop in the price of the seed, the basic seed, compared to 2023. At that point in time, the commodity price was quite low, more than 30% drop. And the commodity price, of course, that would be impacting the price of the seed, untreated seed.
So now this year, we can see that we're starting a minor drop in the price. But still, prices are stable. We are not seeing any repetition of what we experienced in 2023. The capacity of the company that having more technology and be able to have more added value product compared to 2023, we do good. With regards to corn, yes, there was a last area planted with high stocks. So corn seed this year is actually this sector is accommodating, settled. We are well positioned. We are in good relationship with the main companies that that attain technology with corn seeds. So we can see, we can anticipate that in the medium and long run, that will be positive. We are prepared and well positioned with regards to the opportunities that we have with corn. So as new things happen, we'll be sharing.
Now, the third part of your question with regards to the effective and so the seasonal effects and what happens throughout the year. So there are several discussions with regards to taxes in. And that is bad, of course. But we have our analysts on how we can optimize our structure for us not to have any additional impact. Well, of course, most of our results will come in the second semester. The first and the second quarters are not really good proxies in terms of effective taxes and because there are no results. We are not selling soya. So those are very low margins at this part of the year. So our fiscal strategy will be more evident in the second semester. And other than now to be trying to indicate some results or some what we have in the first quarters.
Of course, there are very clear strategies on how we are operating, for us to mitigate any impact. Another important thing is that because of our cash, we have stock. And this is part of our asset of the company. So that could mitigate any cash effect for 2024. So this is clear. This is in our balance. And we want to use all the stock that we have to mitigate any cash effect. And of course, first to make the most of the alternatives that we have with regards to our fiscal strategy to the second semester in 2024.
Thank you, Felipe. Another question from Tomas. Can you give us details about the margins and the proportion of seed with high level of technology? Is it similar to what you have in soya?
Tomas, good question. We have very good capacity in terms of optimizing the seeds that we use. Because of the optimization of that, we can or we should have the optimization of the delivery as well, delivery of results, results that are more relevant. It has different characteristics. Beans, wheat, that would be different. Forage also, sorghum, next to corn. So they're hybrids. Now, it would be different in terms of the dynamics of each of those crops. So they are very special. There are special things to each of those crops. I can tell you, regardless of each of the details for each of the type of crops, yes, they have their own capacity of raising results. That is interesting to the company. This is why we are dedicating energy to those different crops to optimize our assets and the company as a whole.
We are not going to provide any type of guidance regarding other crops in the company, not even margins. But yes, we're still working on this to become a reality to us.
I would like to thank you to all who submitted questions. Since we have received many questions, we ask you, for those who haven't had their questions answered, please submit that via email to our Investor Relations. I would like to pass to Felipe to make his last comments.
Thank you. I would like just to thank you for the presence. On behalf of our entire team, we are thankful for the trust deposited on us and the analysts who follow us. They have been working hard on trying to understand the company, a lways in contact with investors to disclose our perspectives, our results, regardless of their own different points of view.
So, many thanks to this good communication and to this synergy of the contributors and also to our team with the follow-on that we had that was in such a difficult moment in the market. We heard that a few companies will be able to have that offer considering the current situation of the market. That shows that there is trust. Just three years in the stock market. A very new, very young company. Nevertheless, we see that there was a lot of trust deposited on us. All we have to say is thank you is increase the capital. All of us in Boa Safra, we have huge and even greater responsibility to honor this trust being deposited on us. Once again, we're going to be working with a lot of energy.
I don't know if I can put even more energy compared to the last three years in terms of we'll be really eager to deliver results. So of course, there are the difficulties and the ups and downs of the market, but we do firmly believe that we are well positioned. We can face any sort of difficulty that we anticipate that might happen in the market. So those, in our understanding, will be great opportunities for our shareholders to count on us. Many thanks for your trust. We count on you. Next, this coming quarter, when we close the crop, we're going to be talking about results and the sales that are going to be done second semester 2024. Thank you very much and have a great week.
This teleconference, the first quarter of 2024, is now ended. You may now disconnect.