Good morning to all. Welcome to Boa Safra earnings release presentation, fourth quarter 2022. Among us, Marino Colpo, CEO, Felipe Marques, CFO, and Investor Relation. I would like to inform you that participants will be just listening to this presentation. At the end, we will start the Q&A session. During Q&A, please submit your questions through our web guest platform. The slide selection will be controlled live here. I would like to pass the floor now to Marino. He will conduct his presentation. Marino, please, you can proceed.
Good morning to all. First of all, I would like to refer to slide number 3. We highlight the important aspects of 2022. These are the main highlights. As per the net revenue, BRL 1.7 billion was a growth of 69% compared to 2021.
With regards to the fourth quarter, there was a growth of 71%. In terms of volume, seed volume sold to 136,000 big bags. That was an increase of 30% if you compare it to 2021. Market share was expressive, more than 1%, 1.3%. There was a market share of 7.4% in 2022 if you compare it to 6.1% in 2021. Net income per big bag, there was an increase as well, going from BRL 983 - BRL 1,031. Highlight is with investment. There was an investment of BRL 240 million in 2022. Part of that is going to be rolling out in 2023.
With regards to masculinized seeds, as a matter of fact, we want to start producing corn seeds. Calling foreign market is a big, big avenue, and it would be, according to our understanding, a great growth, similar to what we have witnessed with soya. I would like to bring your attention to the conclusion of Balsas and the one in the Chapadinha and also the last expansion and conclusion of Cabeceiras unit. 2023, we start off from 170 thousand big bags. There was a sale of 436. Actually 170 is the installed capacity. I'm going to increase that and actually today we are producing it already in 2023. I would like to refer to slide number 4.
You can see here in this chart the highlights of the progress of the company and also the market. This is a quite interesting piece of information because it shows the growth of the company during the last 2 years. In April 21, in the beginning of April 21 was an IPO, but our IPO was realized with figures from 2020. Basically from 2020 with that IPO, we compared it to the company now of 2022. 2 years after this IPO, there are some highlights and one of them, there was a planted area growth. There was an increase in 13%, 70% in installed capacity growth. 70% of growth. Net income more than twice as much. There was an increase of 150% moving from BRL 70 million - BRL 175 million.
This is as results. We can also see other indicators such as sale of seeds, biotechnology that is also growing a lot. TSI has had a significant growth. There will be another graph and you will see that TSI has twice folded almost every year to 100%. Market share, there was a 1 point per year of increase of market share. Also the net income moved from BRL 7 - BRL 1,031 per big bag. Despite of the fact that our company is focused on share growth. The market outside is quite consolidated if compared to Brazil, and we believe that Brazil is going to become a proxy, which is the market outside, and we have a lot to grow. I would like to refer to slide number 5.
You can see here several aspects of the quality of the company. This is very important. This is for both vigor and germination rate. We have the best quality of record in our history. Quality is constantly growing, is on a rise. One of the most significant challenges of a company that wants to grow at this pace with seeds is actually how to build plants and expand and at the same time keep up the same quality. A big hand, a big applause to our team because our team is totally dedicated, totally focused on their tasks. We've been increasing quality, projects, and not only that, everything that it is related to processes at the plant, at industry, planting.
A constant evolution for us to keep up with this growth. We are extremely satisfied for being able to raise the bar of our quality. This is one of the major challenges that we have and question marks that we would have in the past that have been sorted out. I'd like to refer to slide 6. With regards to operating performance, you can see that we have 4 different graphs that show us how much we have evolved and our potential for growth at Boa Safra. You can see that since the very beginning of the company in 2014 until 2022, our install capacity has increased steadily and seed volume as well. This is also a response to several questions we had. There was this reticence, would we really be able to grow at that pace?
We are actually showing that it is possible. You can see the market share has also moved up. We went from 1.8, and now it is 7.4% market share. That is just in a span of 8 years. Planted area. It is important to bring to your attention that there was an increase in area planted, but you can also see that there was an increase on the diversification. There was the growth in Bahia and also in Mato Grosso, and that is a trend to us. It's not that plants aren't ready, so we might diversify a little bit more and also in the planted area with this increase in 1,000 hectares. This is related to integrated growers. These are areas related to the integrated growers. I would like to now refer to Felipe Marques and invite him to continue with slide number 7 forward.
Many thanks, Marino. Slide number 7. You can see our financial performance with our variation of the season that we have. Of course, the seed backlog that is translated in revenue in the 3rd and the 4th quarter. You can see that we closed the 4th quarter 2022 at BRL 690 million, and here seed backlog 0. You can see that this closes the whole history, and there is a great opportunity once you see the year and when we are able now to compare 2022 to 2021.
Actually, we explained in past conferences the experience of selling seeds from the third to the fourth quarter in the previous year and also that little gap that exists in the kind of business. As a matter of fact, this now translates into total net revenue on the fourth quarter with regards to seed. Now slide 8. Please confirm with me what Marino just talked about, which is important to see the net revenues that we reached at BRL 7 billion and part of that increase is due to the volume of the seeds, and of course, the unit price per big bag, and also the amount of grains. Actually part of the process is dedicated toward grains. Of course, the increase of our production capacity and also the expansion of our cities.
As a matter of fact, with our philosophy of implementing new centers of distribution, they are at now different locations from the units, they are closer to our clients. Despite of the fact that we still have greenfields and works that we're still going on, they are becoming or they are getting a in operation, showing or improving the results of the company. According to Marino's information map, except in the south of the country, we can see that there is more diversification in our integrated producers or integrated growers from that side, and also related to our results. When we see the revenues of seeds and grains, actually you're gonna have this total information at the end of the year.
You can see that grains, we will reach BRL 600,000, and also BRL 1 billion in seeds. You can see that 1/3 of our revenue has increased principally because of the increase in our capacity and also the increase of number of varieties. There was an increase in that volume of grains. This is going to be kind of our reality. Some years more grains, some years less. Depends on how the operation goes. Of course, this all towards the good results and what we are actually expecting to get more is what it is related to the seeds revenue. I would like to show you now the results of 2022. You can see that was the information from the fourth quarter.
You can see that it is becoming a part of our results. Along the year 2023, we are going to be approaching more details of what we are to see next. In slide 9, you can see main indicators that are interesting to have a look at. The main important aspect would be the adjusted EBITDA, BRL 2,202 million, including just the derivatives. There was a growth of 33%. You can see that there is growth in our revenues and that top line and also margins are growing. This is also shown on the net income. Actually, this is a new education approach that we want to do with you.
Since we have this variation, during the year, increase on, or not as much increase of, grains, you can see that how much we are growing through seeds and also our bottom line is also good. We moved BRL 208.8 million to a consolidated BRL 175 million. You can see that this net income per big bag of our installed capacity, we can show you that, as Marino mentioned, that we had the best result in history of the company. Also, we are growing in terms of results and in terms of net income per big bag. In the end of the day, we have this growth with quality of seeds, as Marino mentioned, and also profitability, all related to the expansion of our areas of biotechnology and also the increase in capacity.
In slide 10, you can see that our debt is, actually our balance is more complex because we have two operations. We have the effect of FIAGRO, which is consolidated to our balance and also, because of the bad seed. We can see here, the results. As a matter of fact, we did this during 2022 to prepare the company to move ahead, to move forward. This is something that we want to celebrate because it is not only to have a look at the good results in 2023, but the way we are stepping into 2023 with our controlling and consolidated net debt of BRL 261. When you can analyze on the consolidated, we have a BRL 39 billion as the net debt.
As we are very conservative, all the FIAGRO quotas that were not sold are not considered working capital in our investment. We consider those quotas that are sold daily. We moved from BRL 76 million in the controlling net debt, and if you analyze the consolidated net debt, we would have BRL 224 million negative. This is a fundamental aspect for you to understand how strong we are. We never closed such a strong balance, even if you compare to the year when we had the IPO, the year close. Firstly, because the financial market is extremely difficult with high financial rates, so there is a privilege to have good levels of liquidity.
We are making a series of investments we are going to show you now. You see on slide 11, you can see our investments. During the year, that is the most investment we had, BRL 240 million, BRL 206 million of our own assets and a mastery, 34. You can see that in 2023, we are stepping into the market with this more than 200,000 big bags. We can see that in 2021 and 2022, there were several investments, BRL 350 million of investments. You can see that we are meeting our plan, our goals, and also putting our resources in IPO, a new unit, and increasing our capacity, and that is showing in the results partially in 2022.
As Marino said, part of this capacity for both storing and processing are showing now in 2023. I would like to pass it to Marino. Let us talk about 2023, Marino.
Many thanks, Felipe. You can see on slide 12. You can allow me to compare it with what we had in 12 and this investment. BRL 320 were invested in our capacity of producing soya. You can see there was BRL 320 million as shown in the graph. Well, actually, at this table on slide 12, you can see the increase of the results. We went to an increase potential of productivity. With this BRL 300 million generated BRL 100 million in income. You can see that we are worried with capital allocation.
This is actually, one of the major aspects, how to allocate a capital, how to protect and respect the interests of shareholders, and that is also a return to our goal. We want to meet our history with very high ROI. This is something that we want to meet and as the part of the company. Now I'd like to talk about slide 12. I would like to highlight what we had. The market share of 2020 until 2022, you can see that in 2023, it is still open, but the installed capacity moved from 100,000 big bags - 170,000 big bags. We are most likely to get about 2,200,000 big bags. A planted area, we are increasing our planted area.
It is important to highlight that planted area is. This refers to integrated growers, those that multiply the seeds. We move in terms of net income from BRL 70 million-BRL 175 million. Net income per capacity is also quite explained, well explained. We went from BRL 7.2-BRL 1,081. BRL 702-BRL 1,031 per big bag. I would like to pass to Ellen. She is going to open up the Q&A session.
Many thanks, Marino and Felipe. We're going to start our Q&A session to investors and analysts. Questions should be submitted to us through our platform. I'd like to ask you please to hold as we collect and receive the questions. The first question comes from Larisa.
Larisa would like to know what we expect with regards to the grain mix and seed mix in 2023. Is there any expectation to increase TSI sales? Also if that would add margin to the company. There is another company from Larisa with regards to the metrics. What was it? What was the metric used in terms of net income per big bag? Is there any drive to... so that we can have different results compared to the inflation?
Larisa, with regards to the seed mix, we'll start from... There's four important bullet points that are our business. Think of four boxes. The first one would be the grain, so the raw material, and then we have germplasm and genetics, so the royalties.
The third box would be the products that are for the treatment of seeds and the molecules and fungicides. Those are the inoculants that we add to the product. The fourth would be operation costs. Freight, energy, human resources, fuel. The operation per se. This is the admin aspect. All those four big boxes, when they are together, actually they compose the cost of the seeds. What happens? In the past years, raw material, that box grew a lot, much faster, more than the other ones and the other costs. We felt that because of the soya price, that box is more significant. Of course, we have better invoicing, correct. Also the value of the grain is happy, especially when it is discharged.
If you see that with your growing, with integrated growers, 40% is grains. These are the figures that you saw on the presentation. During uncertain situations when this discharge is, or these grains are not of the quite high quality, we have to buy more, we have to mix more soya to increase the quality in the mix so that the sale is equivalent to the quality. I'm talking about the discharge, I'm talking about the grains. What I would say to you, Larisa, is yes, with this loss, is that there was a drop in the price of the commodity. Grains has less value. Perhaps it could be a little bit less relevant in our balance. It might shrink a little. Perhaps that would bring us to an increase on the percentage or the margin.
It might lose some strength in terms of grains. This is just related to price that I referred to. The second part of the question is about TSI. We are growing steadily. Our sales of seeds that are treated, yes, TSI sales has twice folded constantly. Every year is twice as much. This information is here on the presentation. No, it is not, he says. We have a release, and in the release you have a graph, and you can see the TSI growth, and it is showing an increase, and we are very optimistic with regards to TSI sales this year.
Many thanks, Marino. I think we can move to the next question that comes from Pedro. Pedro wants to know a couple things, capital allocation and working capital.
The next question is, what can we expect with regards to capital allocation? I would like to know a little bit more about M&As. Is there any plan to accelerate the capacity growth? Working capital, can you speak a little bit more about the past drivers to improve working capital in 2022, and should we expect the same kind of policy for this 2023?
Many thanks, Pedro. This is Felipe speaking. Thanks for the question. With regards to capital allocation, based on the situation that we are experiencing now, we are being very careful, much more than in the past. Actually, during our board meetings, we actually discussed, as a matter of fact, the possibility of other levels on how to allocate our capital.
Of course, we are going to be disclosing all the, this information, but you will be able to see that we expect to optimize our investment principally considering this more challenging context and also the rates and the situation around the world. With regards to M&A, we understand we are a seed company. We, yes, see several different opportunities that have some sort of synergy to our business. FBC is the first step of our intensification of M&A. We're also studying other fields. We are trying to diversify our portfolio, and we are looking for synergies. We are studying other partners, such as Bestway Seeds, to be part of our Boticá family so that we can unite strengths to increase synergy and optimization of our assets is our goal.
With regards to working capital, the main driver to us was actually this search for the best allocation of our capital because the cost of money is... The cost is higher. There was a large volume of grain at the end of the year, we're also trying to decrease our stock, like bags and chemicals and trying to decrease that cost. This is a very important part of our operation. Another aspect that I would like to mention is FIAGRO. Since we've been selling our quotas, our fund quotas, that resource was added up to our cash. Remember that in December, we had another operation, BRL 300 million in total.
We still have BRL 185 million of quotas to be sold, and that actually translates in liquidity to us. I think this is a very important point to remember, principally with regards to working capital. We still have a lot to do with regards to working capital. This is something that it is part of our attention for 2023. To be able to actually work out several aspects and bullet points of our balance, such as taxes, and so that everything translates into cash at the end of the day. This is our task, our homework here. As controllers, we want to monetize. We are very rigorous, and we pay a lot of attention to our working capital.
We managed to show a positive result with our operational results, if compared to the negative values that we had from the previous years. Yes, this is the trend that this is the path that we want to develop along 2023.
Many thanks, Felipe. The next question comes from Gabriel. Gabriel asks you to make comments about the operations between corn and soya and the synergies and how much capacity can expand without combining the differences in crops and soya, corn.
Many thanks for the question, Gabriel. Before going to the answer, I would like to make a comment to Larisa. If you slide that it is on page 16, you can see our history sale and the bags and TSI. In the release that was submitted to you yesterday.
We can see the results in 2021, it is almost twice as much. Again, from 2021, we jumped to 38,000 max with TSI. You can see that our growth is steady, and you can see that seeds is growing at a rate of 30%. This is in terms of total volume of the company. This is generating 70%-80% growth per year. Basically, this is what we are showing. On page 16 on our release, you can see other figures of our history since 2017. Moving to Gabriel's question about synergies. The main synergy that I see is the centers of distribution that are near the growers. This guarantees quality. Grower can go and collect the seeds the best time, one or two days before, so before planting.
For them, this is an advantage because before, they would have to keep the seeds for one or two weeks, and of course, quality would go down. With those CDs, there is an incredible synergy. The same for corn. The second thing would be seeds. The treatment of seeds and corn are also treated with TSI, soya as well. Both could be done directly at the center of distribution. I think those are the great advantages and synergies that we have in terms of our assets. There should be a positive result with the season. Because of the soya, we have three or two quarters that are very low in terms of results. Sometimes even we reach the bottom, a negative one, the first and the second quarters.
That is quite marked because we spend a lot. We buy raw material during that period of time with all the processing and the industrial part. The third and the fourth quarters, you can see, and you already know that, we reap the results. What are the trends? As we make headway with corn and other crops, the season variation would decrease despite of the fact that it is important to note that there is still a lot to grow with soya. I imagine that even if we grow a lot with corn, for example, that variation, that seasonal variation will still be marked on our balance.
Many thanks, Marino. There are two questions to Felipe, one from Ricardo, who wants to know what are the main regions, the reasons, for the variation of the EBITDA. With a SELIC rate 13.75, is there any difficulty in the search for credit and investments for the company?
Ricardo, many thanks for the question. You can see that you read our release. The main reason is decrease in stock, which was actually treated in the previous question. Actually, there was an increase of grains in December, and also the packaging and also pesticides that appears on our balance. This is basically part of our expenditure that affected the result on the working capital. Also taxes. Taxes appear a lot, and that has not been monetized as yet. That also interferes in our working capital and also receivables.
Most of those receivables are actually due in April 2023, which refer to sale seeds and those seeds that were delivered to our growers, to our integrated growers, that those will come in. As Marino mentioned also, there was an increase in the planted area and also the increase in our capacity. That will start to be shown in our balance of December. Because of the growth, actually, we are preparing, getting ready for 2023. Those are the main aspects that show on the EBITDA when you compare to our cash flow of the company. As a matter of fact, we're gonna be doing an additional work for us this year to be able to optimize our working capital in 2023. When it comes to Sandro's question, the market is more restricted.
SELIC rates are higher, the balance is very strong. There are several operations at the end of the year. Actually, two-thirds of our debt, the consolidated debt, are long term. We managed to finance several of our projects in 2022 and part of 2023. We already have several aspects that have been decided in the end of the year. The new profile, the capital structure of the company. From our financial point of view, we are trying to find strong balances such as ours, despite of the fact that we are living a very difficult moment at this point in time in the market. We want to have high quality. Actually, we want to be really situated with a good quality and with several lines operating.
To look for those forms of operating in this year. Actually, we have quite many open doors, and we showed that in the balance in 2022. We are going to be working in 2023 to be able to finance our CapEx and also our working capital, which is more intense during this entire year, to be able to continue with this capital structure that is this sturdy and healthy, optimizing our revenues and also the financial expenses. You can see that there is a very high working capital value on the year when we analyzed the overall and the consolidated results, we can see that there were positive results. You can see that we are able to get long-term loans and our rates are much lower than what you have in the market in CDI.
Many thanks, Felipe. The next question comes from Victor. He wants you to give us an overview of our customer portfolio. Some of the players are leveraged. Can you please also approach the perspective of how to operate considering the higher cost of the money? How do you see the quality of our portfolio?
Thank you for your question, Victor. No shade of the doubt, we are diligent in our on how to approach our credit, and it is very relevant. You can see in our receivables. This is a very short, receivables rate. In December, most of that, as I mentioned, is due in April, right? Despite of the fact, we can see that our sector is doing well. We haven't seen any problems with regards to the weather. Actually, there was some problem in the south, but we are not operating, we are not exposed to that kind of risk in the south of the country. You can see that it is, everything is well-balanced. This is just having a macro understanding. With regards to, sales or retail. We have a credit policy.
What we look for is, in addition to, considering the risk of the retail, there is also the risk of the growers. We receive several, aspects. Sometimes we are exposed at the customer. These mechanisms are, as a matter of fact, forms to mitigate our exposure to risk of this credit. We monitor that, we analyze it carefully, and we also see the problem from the side of the grower who is our customer. We actually are in a comfortable situation, but we are always monitoring any kind of variations and exposures to risks, principally for the year 2023.
Many thanks. The question comes from Victor. We also talked about it during the call, but Victor brings to our scientists if there is any room for other seeds at Boa Safra , and if you believe that the market share would still grow the same way it did so far with the new CDs. He wants you to explain a little bit more about how to calculate the average cost of a bag.
Well, let me try to answer what you just asked. The first part, with regards to seeds, I do believe that the answer is a yes. Why? Because Boa Safra has a power. There is the power of the name. Our brand is very strong. We have a good name. Boa Safra is known by growers. Of course, when we talk about logo, talk about brand, of course, it's like Louis Vuitton. You can have a bag with a logo Louis Vuitton, and the price would be 10 times higher. Of course, in our market, it's not like that.
Of course, you know when there is a brand that is high quality, when the brand is known in the market, and you compare to other seeds. What do I see? I see that recently, after the disclosure of several approaches and for example, seed for pastures or corn, and that is that was well-received. The market embraced. Clients want to work with our products. I do believe, yes, we have that space. We have the non-operational synergy. It is the same brand, the same client, the same task force, the same sales team. Our sales team is of high quality. Our team, our reps are very good. They are, yes, able to sell more products to the same customer.
In my understanding, there are several advantages, and we are likely to increase our portfolio of seeds. Yes. Now, with regards to our new cities, I would say yes, we are opening more cities and we noticed that the sale has skyrocketed. We're doing quite well. Highlights to Malhada. The orders are twice as much if you compare to what we had last year and principally in our center of distribution in Balsas. We are very positive, and I think that the strategy is right there. It is correct. Those regions with new CDs, we had an increase in demand. Why? Because the grower knows that we are in the region, that there is a guarantee of high-quality seeds. Not only that, they will receive the seeds with good quality.
This is the most important because in the past, we would take too long to deliver or they would have to come in too far away. Quality is still high now. If the grower has our the CD or the center of distribution just next door to them, they have quality. With regards to average cost per bag, I don't know how to do that exactly. Actually we are providing the results per bag, and I think that on top of that, on top of that result per bag and also compare, if you compare to our results, of course, if you just remove the part of grains, you can have some perhaps some idea of that.
Many thanks. Many thanks, Marino. Let us move to the last question because of, for the matter of time now. The last question comes from Marcelo. He wants to know how is it with Bestway? What is the participation of the corn seeds in the final result for Boa Safra?
Marcelo, our corn business is much smaller. Much smaller than soy. Soy is still growing strong. It is not easy for us with corn to reach the same level of soybean. Of course, there is tremendous potential with corn. There is a growing demand in Brazil for corn. The second one, crop areas have increased more than areas of soybean. This is something that is really catching our eye. With regards to corn seeds, there is a return over the investment that is similar to what we have with soybeans.
That gives us positive thought. We really want that Boa Safra to invest corn to be a really relevant company in the sector. I do believe that due to this strong growth that we had with soybeans, we at Boa Safra still have that evident seasonality results, the variation during the year. Of course, pasture seeds and corn seeds will help us to decrease a little bit that variation that we have in our balance during the entire year.
Many thanks, Marino. I would like to thank you all for the questions submitted. For those who haven't received question, please submit your question to the email of the investor relations. I would like to pass the floor now to Marino for final remarks. Marino, please go ahead.
I would like to thank you all at Boa Safra. Also, I would like to thank B3. I would like to thank Ellen, who is in charge of Investor Relations, actually. I would like to say congratulations. The whole team has shown total dedication to obtain those results. We are at Boa Safra celebrating the results. 2022 has been delivered with high-quality results. I want also to thank all the investors who trusted, who believed in us. We're gonna be working to honor the trust we made and use