Good morning to all, welcome to our conference for Boa Safra second quarter results. Among us, Felipe Marques, Investor Relations and CFO, and Marino Colpo, CEO. We would like to let you know that you'll be listening to this teleconference during the presentation. Just at the end of it, we will start the Q&A session. During Q&A, we would like to ask you please to submit your questions through our web class platform. The slide selection will be on you. I would like to pass the floor now to Marino, who will start his part of the presentation. Please, Marino, please go ahead.
Many thanks to all participants for this time with us, for our earnings release for the second quarter of 2023. I would like to ask please to go to slide 3. Let me talk about the main highlights of our second quarter, 2023.
In my opinion, our major highlight is our order backlog, which is equivalent to BRL 1.1 billion. This is in history, our largest backlog. This is, this is in our history. We're showing 40% growth if compared to the same period past last year, which was about BRL 800 million in orders. 34% for soybean seeds, BRL 41 million, referred to BestWay Sementes contract, which is a company that we acquired at the end of the past year, to which we own 2/3. Our operating revenue showed increasing growth, BRL 1.8 billion, 53% increase versus the second quarter of 2022. Our debt EBITDA ratio in the last twelve months, it went from 2.6 in the second quarter, 2022, to 1.8 in the second quarter, 2023.
Of course, we are considering the season variation of the year. Of course, we close the year with no debts, and now in the 1st and to the 3rd quarter, this is when we buy our raw material. Basically, we show major use of the capital. That's why we have a greater debt. Of course, at the 4th quarter of 2023, things change again. After September, October, November, the company will be paying the debts, the short-term debts. The debt will show either very low or negative. This is at the end of the year. This is our target for the end of the year. Of course, as you know, during the entire year, the operation, there is these variations, the seasonal variation, because we are buying raw material.
You can see that we also have the stock. Now, talking about expansions. Expansions are doing well. There are 5 job sites. Basically, 1 new plant in Tocantins, and the other 4 are expansions. We'll be talking about that further down during the presentation. We are extremely happy because we have, as a matter of fact, 200 big bags- 1,000 big bags this year. Because of all this investment, we will be reaching 240,000 big bags in this coming year. So there's a lot to grow, of course, a lot to be delivered, and of course, a lot of expansions to accomplish this coming year. Now, I would like to mention our distribution center in Balsas, with 9,000 square meters of refrigerated warehouse.
That was that started a month ago. We also have our Bestway unit for corn. We actually concluded that job. We will be reaching 1.3 billion bags. This is for corn, for seeds. Of course, corn starts being very relevant in the composition of our company. I would like to remind the investors that we have 66% of BestWay Seeds. Basically, the this expertise is corn seeds. We have two-thirds of that capital, and we invest $445 million for concluding that plant. At this point in time, we have a realized CapEx of approximately $127 million. That is the investment with regards to soya and $45 million in corn, which totals $455 million. That is.
We'll be able to invest this year out of this BRL 177 million. The job is doing well, so we can reach 240 big bags, 2,000 big bags at this coming year, and also corn. Corn will be starting as of this coming month. Now, I would like to mention a little bit of the figures. Please, move to slide number 4. Now, we compare the second quarter 2023 to compare to the second quarter 2022. We can see an increase on our net operating revenue of 7%. We went from BRL 125 million- BRL 134 million. That was the growth of in our adjusted EBITDA.
It went from BRL 5,000- BRL 10,000. Also in a net income, we went from BRL 6 million- BRL 27 million. I would like to talk about beans. Out of those BRL 27 billion that you see, about BRL 6 billion are actually with beans. Our effort is major, so that most of it opens or diversifies the sources of revenue, so that we are no longer so seasonal. Despite of the fact that soya is still the major commodity in this country, we are already working with fodders, with beans and corn, as you know. We are trying to open a, you know, wide portfolio or a lot of commodities. This is quite welcomed by our customers.
As a matter of fact, we are very happy with the reaction from our customers, and we are also proud of being able to meet all those needs in our port-quarter. Despite of the fact that those that are, at the point in time, not being much of a major change in our season variation, but once again, as soya is the main commodity in the country, we remain at our major point of identification. I would like to talk about our order backlog. We went to BRL 832- BRL 1,000,122. That is just soya. Now, of course, we have the BRL 41 million from basket of corn, which we didn't have last year. As you see, it's not applicable for the second quarter 2023 too.
Slide number five shows our business and how it varies throughout the year. It is always good to remind all investors, some are already acquainted with our reality and how the balance sheet works, and some who are new to our company as investors. We would like to remind you that the first quarter, when we start forming our stocks, when we are harvesting, the period is when we build our eventually. The second quarter to the third quarter, there's more logistic, more storage. The major results come in the third, after September, third quarter, when we start planting soya. In September, October, November is the time we plant soya, soya, and this is when we reap the results. Then, of course, that soya is already sold by the company.
This is why we show our order backlog. This is why we celebrate that in advance. We have this 40% growth in our order backlog, things that are already sold. That's why we are happy. There is a lot of seed that is already sold, and this is going to turn into revenue in the third and the fourth quarter. Now, please move to slide number 6. Slide number 6 shows our operating capacity or installed capacity better. We moved to 170,000 big bags in installed capacity in 2022. In 2023, we went up to 200. Now, our goal is 240 for the coming year. Now, let us talk about the seeds received.
246,000 tons were received in seeds, as opposed to 204,000 tons, the same period with the past year, so about 20% more. Our goal is to cover 200,000 bags produced. Okay? Please move to slide number 7. With that, I would like to invite Felipe, our CFO, to take the lead in our presentation.
Good morning to all. It is a great pleasure to be with you. Many thanks, Marino, for starting the presentation. Slide number 7. You can see our financial performance. Once again, just drawing your attention to the growth in our order backlog, 40% compared to last year, along with our corn operation. We can see that there are some contracts to be performed. As Marino said, that strengthens our idea of diversification.
This is a spoiler, a fun fact for our balance. You can see already in advance, corn, the results, and also the revenue that we expect to have in the second quarter, BRL 11 million. As Marino mentioned, that is also part of our second quarter result. Beans, bean seeds. We move away from the seed variation, not only grains, and now we also have revenues of that are related to all other activities as an organ for us, of course, as a company, which mitigates a little our season variation, which is already our aim to strengthen us as a company dedicated to the production of seeds. Slide 8. You can see in slide 8, our net revenue. Of course, once again, I would like to repeat that because of the variation throughout the year, we analyzed the LTM.
You can see that the revenue is BRL 1.8 billion, as opposed to BRL 1.2 billion at the same period last year. Our net revenue in details, as I said, once again, the participation or the composition with new commodities, our project of diversification already making them their presence in our- the, the composition of our revenue. You can see corn, beans, and others that are also part. We are not concentrated only or basically 100% selling grains, that are those marginal operations that represent quite little, and they were making part of the results of our quarters of the year. In slide 9, financial performance. Net revenue, focusing on the LTMs, an expansion of BRL 118 million-BRL 190 million.
You can see that our result, the results that we had with soya seeds in the third and the fourth quarter of the past year, and the first and the second quarter this year, in conjunction with our strategy, we moved from BRL 175 million, which was our result last year, and the trend for this year of growth, which shows BRL 190 ahead of us. This is actually the LTM analysis. Now, the adjusted EBITDA to us operates the same way. You can see, as we saw in the net profit, we moved from BRL 119- BRL 190. Our adjusted EBITDA, adjusted through by the derivatives, and of course, we have the seasonal variation and because of those quarters.
These are all deducted from this EBITDA, so that we can show these figures through based on the competence this year. Once again, we repeat over and over that season is a characteristic of the first industry, but you can see the picture of the results for this year as much as those order backlogs are turned into revenues, so that we can see the concrete result by the end of 2023. Slide number 10 shows a very important point, which is our company's cash. You can see the increase of the company, of course, considering the different size of the company, we have a good, healthy situation. We went from $280 million. You can see more than 350% of growth.
In our Fiagro quota, still not sold, not, not, not sold as yet, BRL 95 million for Fiagro quota. This is a quite profitable situation with regards to cash. We had an increase on the gross debt, as Marino mentioned, because of building our inventory, we had an increase on the 58%. We went to BRL 395,626. Once you have a look at our net debt, that was just a 10% increase. What we are talking about is a cash generation, which is so much better this year compared to the past year, even with all that investment and the growth that we had, either in the operational aspect and the investment aspect. We all reaping benefits from the Fiagro quotas that were sold.
Basically, we put, we are put in a much better situation with regards to the net debt in EBITDA compared to the past year, I mean, from 2.6- 1.8. This is the major leverage period of the year because of the inventory building, and we are building our inventory at this part of the year so that we are able to reap the revenues as of the second semester of the year. Nevertheless, we can see that there is a substantial positive result and an increase in the working capital of the company, reducing our net debt, which is the peak as much as those net debts dropped a lot. Also, we have the orders that are revenue.
They are turning to revenue and cash, and this is known or this is disclosed just when we close the information for the entire year. I would like to call Marino back to talk about our investments in Slide 11. This is for 2023. Marino, please, you got it now.
Thank you, Felipe. Slide 11. Please note, we have 6 jobs. These are our investment, BRL 152 million invested, and it BRL 97.475 million as past five is still going. What you see number 3, with Minas Gerais, you can see in yellow, that is done. This is concluded. I mean, it was concluded last year, so it is already delivered. In Bahia, there is a new expansion. It, it is already operating.
It is already operating, yes, but it is a plant that... You, you have more information on the following slide. Nevertheless, 4,000 big bags, and we are expanding to 13,000 bags for Jaciara. In Pirapora, there is also another plant that is under expansion. Here, we already have our distribution center that was inaugurated last year, and it is already in expansion. Buritis, Minas Gerais, number 5. There is, it is under expansion as well. We're going to receive quite a lot of extras, 25,000 big bags extra. We also have the new distribution center in Paraíso, Tocantins. They are either new jobs or expansion jobs. We're gonna go to 240,000 big bags and 1.3 in corn seeds for this coming year.
Slide eleven shows... Oh, actually, slide twelve shows the expansions and the total capacity of the plants. 200,000 from we're gonna reach 240,000 in the coming year, what we're investing is equivalent to Jaciara and Buritis, which are the increase of those 4,000 net bags that are going to create in terms of expansion, in terms of capacity. Every time we expand our capacity, we of course, have to increase our refrigerated warehouse capacity to keep those seeds. We're moving to 93,000 square meters to 111,000 square meters in cold chambers. Of course, quite a lot of area, quite a lot of space to keep refrigerated, this is what we are actually doing at this point in time.
Just to have an idea of the volume that we are moving in terms of seeds. Now, let us move now to slide 13. This is actually one of the pieces of information that I like the most. This last slide shows a little bit of the perspective or the outlook, what we have, go ahead, ahead of us, and shows what the company, what happened to the company since the IPO. In 2020, we had the IPO in 2021. That was the beginning of 2021, but then that was 2020 were concluded. Those figures belong to 2020. We were a company that had market share equivalent to 5.7, and it's now about 300,000 big bags and our net income of BRL 70 million.
Basically, BRL 700 per big bag as the net income per capacity. There was an increase to 130,000 bags in 2021, delivering BRL 127 million as net income. I'm not talking about EBITDA, I'm talking about net income. This is like end result. In 2022, last year, there was an increase in our market share and also in our install capacity for 170,000 big bags, and our net income delivered was equivalent to BRL 170,000. That is, same-... as saying that in compare, the BRL 1,000 per big bag. You can see that this year, the capacity, the selling capacity, 200,000 big bags.
At this point in time, at least for the last 12 months, we, we are already passing what we had last year, $190 million. Remember, the strong quarters are three and four here. 1 billion, 100 billion seeds as a order backlog. They are turning or they are becoming revenue. We are already positive with the results, and there's a lot to grow. We know that 200,000 big bags in 2023 will be what we deliver, 240,000 in 2024, and we already have this commitment to 360,000 big bags in 2027. In addition to the growth that we are showing with the other spots, corn, for example, $1.3 billion, and this is going to be in our books this year.
Of course, just for 6 months, the coming year will be with the in full blast and full capacity, $1.3 billion. Up to 2027, we're gonna reach 3.5 million in capacity for corn. I believe we have a history of, of growth ahead of us. We are clearly satisfied to be a company that has the IPO, and we are being able to deliver everything that was promised since 2020. Now, that is our message. Now I would like to invite you to your questions.
Many thanks, Marino. We will start our Q&A session for the investors and analysts. Please submit your questions through our platform chat. Give us some time, so we're gonna be collecting the questions, and please remain with us. Pedro Fonseca asked me also the same first question: Please comment on TSI demand. How do you see the demand for TSI?
TSI demand is doing well. There is demand. Despite of the delay from clients, there was a record profit. Brazil is increasing the area, so demand is still running high. Well, there was a drop in the price of soy, and actually, sales were not so hot this year, including seeds and TSI treated seeds. These past months, there was a little increase in the curve, and even those who were, you know, with the drop of the price of the commodities, there will not be a shrinking of area. Actually, producers want to get more technology, and our biotechnology seeds are selling well. As a company, our average growth is about 20% in volume per year.
Of course, when you talk about turnover is a little bit more. As per treated seeds, there was an increase of more, more than 50% growth per year. We are still positive that we are going to deliver a growth in volume of treated seeds beyond 50% compared to the volume delivered last year. This is our goal. There are several orders. We are very positive with the potential of treated seeds and the growth that we should have. Producers not showing that they will move away from technology, at least not in treated seeds. This is what we see, this is how we feel it. You know, there are two other questions from Pedro. First, volume, the increase on the backlog order, backlog order, and the other one would be?
The other question is, the sales, and if there is any risk and in canceling, any possibility of canceling orders. With regards to the volume, Pedro, well, I could tell you the following: Of course, there is a relation between the commodity price and the, the, the, the, the, the price of the seeds for sale. Say, the commodity and the seeds. If your seed is the one of the inputs that the last, that showed less change a year after year, so there was no reduction in price. The, the price of the grain is about BRL 2 per kilo. It was BRL 2.50 per kilo. There was a drop, BRL 2 per kilo. The seed is about BRL 10 per kilogram.
If the, even if there is a drop of $0.50 in the price, the market price of the grain, of course, there is a little bit impact on the price of the seed, and just two, just a little. You're talking about treatment, you're talking about the molecules, you're talking about inoculants, you talk about royalties and the genetic biotechnology, all that, all that cost, the operation cost and the transfer, transportation. That is not affected. That, that, that doesn't affect the price of the seed.
Of course, there is a little impact, but in our understanding, according to what you can see and the information that you can check out there in the market, so you can see that does not affect much, and the seed is one of the aspects that less is that is not much subject to the variation of price. With regards to the distributions or the distributors and how well they're doing on, on the terms of redistribution, this, it, it's almost like a retail part of our business, right? This retail part of the business operates large volumes, of course, but traditionally, the margins are much smaller. Our worry are always centered in the retail. Any crisis, the retail is always more affected.
In our case, we have the retail, we are worried about them, of course, but with regards to the backlogs. Orders, there is always the risk, but we have a high level of confirmation of the orders that we get on our backlog. Those backlog orders are based upon a contract basis. Those are bad, and we show the details. They already confirmed. The company is well secured, and we are positive, and we are happy with our capacity of delivering the results that are expected.
Many thanks, Marino. Another question comes from IPO. We can see a very high royalty. What is the target of the company with regards to rentability or profitability, based on the growth expected with this generation? The question would go to Felipe, but I would like to say also a couple of things.
We are a company for... we allocate capital. Our focus is on allocating your capital, your investors' capital well, and ours as well, because all of us are already shareholders, and we are our, your partners. Yeah, well, just like you. Everything we look at an investment, we do not put any cent whatsoever in something that would generate a return on the investment to our middle payback for any operation, it's five years. Most of what we have invested, four years is what we think, or we base investment. When we analyze our figures from last year with regards to our profit, rather than talking about the expectations, we moved from BRL 70 million to BRL 170 million. Increase of BRL 175 million. This is figured for 2020, from 2020- 2022.
You see, this is our growth, BRL 105 million. This growth was invested. BRL 210 million were invested to get that. We're talking about a return of an investment of more than 30% of what we invested. We are investing more, we should, at the end of this year, get almost BRL 5 million million invested, the capacity of the company is totally different. 240 million, 240 thousand bags capacity for this coming year. This is, that's something that is really giving us this excitement, not even considering the corn, which is something that we are doing now. We invested a lot, it will be a lot of corn, our anticipation is that they are... I will increase.
Nevertheless, there was a little drop because, because we had the IPO, we got BRL 460 million. Well, we had the investment, BRL 500 million. Of course, because of the speed of the investments, how you invest the money, BRL 122 million, for example, this year was invested, but that is invested in plants that will, of course, they're gonna be ready, but they're gonna reap results just as of the coming years. The worse that those results start coming in or chipping in. The payback will be amazing. Our target is 4 years. As we have been able to show you those investments that were made, so that payback will come earlier, in 3 years.
We invest a lot, of course, the return of investment will take a little longer, but the idea is that we should get back to our history average. I don't know if Felipe would like to say anything? As a matter of fact, it is perfect. It is basically what we do, what we talk about in our board meetings. There's no worries. We see our investments should be in our projections and our business plan, at least 20% as return over investment at the end of the day. Right? This is what we consider. This, just talking about 100% equity. We do not consider any type of leveraging a mechanism for us. We want to have a structure, a capital of third parties of this project, so that we can make it more.
These original return on our investment is just we our own capital with this at the minimal margin of 20%, as Marino just said. Thank you very much. Now, Luis Escudero, he asks Marino, "In the long run, do you see that the company will be a good dividend payer?"
Well, yes. Now, what we think is that in the long run, yes. Nevertheless, there is the growth and the consolidation of these things for the short and the long run. Actually, we are a cash cow. It's a profitable business, but there is still a long way to go to grow. Now, to give you an idea of the growth in Brazil, let's talk about United States leader. In the U.S., American has 37% of market share in the United States.
This is our comparison in the U.S. Boa Safra in Brazil, 8% of market share in what we operate, we operate. There's a still long way to go to grow. In Brazil, we're growing in field, in area, planted and fast. This is a, a, a good opportunity, at least in the short run and the medium, medium run. We're happy to, to be able to deliver what we are feel is delivered, results, growth, market share. You can see the growth, year on year. There is a long way to go, yes, before we become like a major leader, market leader, which, which is something we believe, possible, looking back to what has been done in the United States, for example.
Victor Cismem asks, actually, he says, congratulations for the results, but he would like to ask, "Do you believe that you're gonna keep the same return? Even with the drop in the price of soya, you're gonna keep the same levels of return for this year?" Well, let me give the answer. Unfortunately, we cannot give you any guidance about profitability and. We cannot provide any guidance with regards to results. What I can tell you is that we are extremely excited. We do believe that we are going to meet what the analysts expect we are to deliver. They're great analysts, and they are keeping an eye on us, and we are going to meet what we say we are going to meet, and our backlog order is further. Orders are confirmed.
I can tell you that soya seed is one of the less, one of the inputs that is less affected in terms of price, the sale price. That is something that we can compare to what has happened with other inputs, even the defensive, even fertilizers. When it comes to seed, seeds are always sturdy and firm and robust in terms of price. I can tell you even more. Even beyond our expectations, the brand is well-received. We have a good name, and people look for our brand. Our customers want our brand. We thought that we could even have some difficulties, we thought in the past. Now, actually, we see that the client made a choice. They want Boa Safra, even if it is a little more expensive, if compared to the average price in the market.
Why? Because the client wants technology, quality. Next year will be tight. Commodity price will be lower, there will be less margin, but they don't want to make the mistake on getting the wrong seed. If they start with the wrong footing, with the wrong seed, they will start with a bad field, with a kind of the crop projections won't be that good. Much of the country, what we see is that an increase in the use of technology. Well, we talked to our distributors. Clients want really to plant more Safrinha seeds, so they've got their foot. Of course, because of the marketing, because of our trade departments, they're doing quite a good job. The entire marketing approach and kind of. This is reflected in the image that we have of the clients, and the clients are faithful.
We have a very recurring clients. Our clients buy with us year after year, so that we remain, they remain with us because our results, 90% of the clients come back, 95%, they're coming back to us again. Many thanks, Marino. Rafael asks the following question: Is there a demand for this demand of big bags in 2027? How do you work this a demand that it is not met, Rafael? All right, yes. Brazil is growing in terms of area planted, our company is also growing fast. All right, we on the rise. There was not a single year that our growth was less than 30% in 1 year. We believe in our brand, the clients believe in our brand.
Clients want to buy and keep buying Boa Safra seeds, so that's what they show. This is where, this is when we established this, this plan. Of course, we're delivering it. We believe that we're gonna be able to reach 360,000 big bags in terms of capacity for 2027. When you see, of course, like, clients that are still a leader with a 27% of the market, this 360,000 big bags, would get-- would, would allow us in, quote, "13% of our Brazilian market." This is almost a third of what a leader in the market in the United States has there. You can ask, "Marino, do you think that you can get 37?" It's a tremendous challenge, but the 13% to 2027, I think it is possible. Yes, yes.
This is why we established that as a goal to us. You're talking about demand that is not met. How do you deal with that? I do not quite understand what you mean by a demand that it is not met. What I see today is that if we had more capacity, we would sell more. Our growth is kind of held back, because, you know, because of the capacity of our distributors. Of course, we are doing quite well in terms of our orders and that we're selling well. Of course, there's the good demand for our product. Of course, we should keep doing our good marketing jobs and our sales has to be, sales department has, has to be wide awake, but of course, we can meet our expectations. Perfect, Marino.
Victor Paiva asked us another question. "New contracts for the backlog orders or contracts, can you still get those in the third quarter?" Yes. Okay, yes, there's still the possibility of those contracts, new big orders. Yeah, actually, they, they exist no matter the order, because that is not shown to you, because we don't see the, what it is invoiced, basically. We, we, we should have that invoice. It doesn't matter, we should provide information by month. Of course, every year is the same. We should be invoicing a major part of those BRL 1.1 billion in backlog orders. Of course, there are new orders. Those are, those, those, those are like pick orders, so like immediate purchase.
They kind of come, order, and they can load, load the truck and move. It's kind of instant orders. Every year, we have that. About 10%, up to 10%, between 5%-10% in our invoicing is actually those pick orders or point orders or instant orders. We'd like to thank you for all questions submitted. Since we had many questions, those that were not answered, please send to our investor relations mail, and we will reply to you. Now, I'd like to pass it to Marino now to close our conference. I would like to thank you all to our team and also Felipe for his dedication and the entire team. Of course, most importantly, I would like to thank you for your time.
Those who believe in our company, and was with us since the very beginning, that we would be able to deliver what we actually are delivering. We are extremely satisfied to show those promised results as promised, and the company is actually showing such a great growth. Many thanks to all, and have a good day. We appreciate your presence and those, this conference, for the second quarter of 2023 is now ended. You may-