Good morning, everyone, and welcome to Três Tentos S econd Quarter 2025 Earnings Call. Joining us today are Mr. João Marcelo Dumoncel, our CEO and Investor Relations Officer; Mr. Luiz Oswaldo Dumoncel, Executive Chairman; Mr. Cristiano Costa, CFO; and Eduardo Malter, IR Manager. This call is being recorded, and it will be made available at the company's website. You can also find this presentation there. If you need simultaneous interpretation, this service is available. Just click on the globe icon at the bottom of your screen. For those listening in English, you can mute original Portuguese audio by selecting Mute Original Audio. During the company's presentation, everyone will be in listen-only mode. We will then have a Q&A session. Questions can be made via audio. Just click the raise hand icon at the bottom of your screen.
To submit questions in writing, click the Q&A icon at the bottom of the screen and also type your question. Before we begin, please note that any forward-looking statements made during this call are based on management's current expectations and beliefs and are subject to risks and uncertainties. These statements are subject to a number of factors that could cause actual results to differ materially from those expressed. These factors include general economic conditions, trends in agribusiness, and other operational variables that could impact Três Tentos' future performance. I'll now hand the call over to Mr. João Marcelo Dumoncel. Please go ahead, sir.
Good morning. Thank you. I would like to thank you all for being here. We're very pleased to have the chance to talk to our partners about Q2 of 2025. We'll be describing the performance, the numbers, and the outlook for the company.
As far as Q2 goes, I would like to first point out that this was yet again another excellent performance quarter for the company. Revenue grew significantly, about 30%. More importantly, we had growth in our results, as you can see across all lines: gross margin, EBITDA, and net income as well. This is proof of an excellent performance quarter for Três Tentos . On to the next slide, breaking down by segment, as we usually do. This growth, this performance is present across the board in every segment: ag inputs, grains, and industry. Let me point out a couple of items. Inputs grew revenue and results significantly. That's driven by the increased area for canola in the State of Rio Grande do Sul. The planting season occurred in this second quarter. Ag inputs use was concentrated in the quarter. Good margin recovery, especially quarter- on- quarter.
That's driven by an uptick in prices and the regulation within the Ag inputs market. After some shortages that occurred during the pandemic, on to grains now. We keep on growing strong, supported by the Mato Grosso record harvest that brought in a significant boost in volumes. On to the industrial side now. We have increased capacity and reached full capacity of our plants. Again, these volumes keep growing in recent quarters. Let me point out, despite that was not reflected in Q2, the industrial sector is optimistic because of the introduction of B15. It will be in effect as of August, or was in effect as of August 1st. Another positive impact. Let me shed some light on the adjusted EBITDA. We want to be consistent in our demonstrations. Quarter after quarter, we have been posting these numbers reflecting our results.
On top of the adjusted margin, we have margins with the operations that have been liquidated. Just like last quarter, there are some positive and negative results. Again, we break that down. We open it up because the highlight is the half of the year view. That's 4.4% growth from 4.4% to 5.9%. Significant increase in percentage points. An absolute growth of over 70%. This is an indication that the company is heading in the right direction as far as its operations go. There are no financial bias whatsoever. We even said that we are responsible for our risk management. This slide consolidates that principle. The company operates fully hedged, protecting the commercial margins we obtained. All right, moving on. I would like to turn it over to Cristiano to walk you through the financial aspects of the company.
Good morning, everyone. This is one of our strengths: our financial situation. We ended the quarter with net debt at R$1.8 billion. In terms of EBITDA multiples, it's 1.47x. We believe it is a healthy number according to our plans. We have been leveraging up until late 2023 to be prepared for this new cycle of growth. This is a number similar to other investment cycles we had before, just like in 2021 and 2022. When we look at the investments track record of the company, in the last 12 months, the company invested R$1.281 billion, 8.9% of our net operating income, or revenue, rather. We have been working as we had in the past. Now, we are at the end of that investment phase in Porto Alegre do Norte in our ethanol plant. This is the breakdown of that net debt between late 2024 and the current situation.
As you can see, the company generated cash in the first half, $552 million. We can also see that we are now having maybe the largest quarterly CapEx, over $500 million in that plant. The total from the start was $881 million. Also investing in Ijui and Cruz Alta plants, so we have more crushing capacity in those two units. Inventories were up, maybe the main driver in our net debt variation. It's the replenishment of grains inventories, especially for soybeans, because of the uncertainties as to the end of the harvest in Rio Grande do Sul. At the same time, a record harvest in the state of Mato Grosso allowed us to have more access to grains, once again showing the farmers' confidence in us. Finished goods, something that was at the port, about to be shipped. We are preparing our inventories for short-term results in the near future.
These CapEx investments are in line with what we said in January 2024 when we started our new investment cycle. Now, to address these investments and the crushing industry and the corn ethanol in Mato Grosso, I would like to hand it over to our Executive Chairman, Mr. Luiz Oswaldo Dumoncel.
Thank you, Cristiano. It's great to talk to you once again at another Três Tentos' earnings call. This is our chance to show how robust the company is, how resilient agribusiness in Brazil is. When we were reviewing the presentation together, Cristiano, Eduardo, João Marcelo, and myself, just yesterday, we decided to show you this picture of the Porto Alegre do Norte construction site, where building the corn, processing the ethanol, DDG corn oil in Porto Alegre do Norte, at the heart of the Araguaia River Valley. We are very pleased with the construction at this time.
It is about, it's going to be concluded, or it's planned to be concluded in early 2026. We are over 70% of the static capacity being completed. We originated during this double crop corn in Brazil, in the Brazilian Midwest. We've already originated over 590 million tons, most of it for export. Most of that volume originated from farmers, from co-ops, from that region. This has been stored for the first six to seven months of the operational phase in 2026. Therefore, we remain confident with the Três Tentos presence in the Araguaia River Valley. Let me point out, just like we said previously, I'm referring to an accident in one company hired by Três Tentos that occurred in July this year, on July 20th this year. That construction company had their facilities there, an area just nearby. The employees on a Sunday night set that dorm on fire.
It was completely destroyed. Auditors, the Department of Labor Agency, and their auditors came to inspect that dorm. Três Tentos, as the owner of the area, supported those auditors from the Department of Labor to do their work, to support those people that were immediately transferred to other places. Many of them managed to come out of that unscathed. Três Tentos hasn't received any notes. We were not held accountable. We are responsible for that construction, and we hired that company to run part of that construction work. We were not held accountable at all for the time being. We are contributing to the investigation and helping authorities in any shape, way, or form so that there aren't any major impacts to the workers of that construction company. We are taking that issue very seriously. We are employing technology. We hired Machado Meyer Law Firm, they've been helping us.
We put a team together to address this issue specifically so that the company can run its operations and business as usual. I would like to once again point out that if we have to dedicate even more time to that issue, the plan is maintained to conclude that construction in early 2026. As to the Brazilan development bank that requested a temporary lift on the credit up until the information was collected, we supplied them with all the information they needed, and we believe that that credit line will be resumed very quickly. It was a R$500 million loan to Três Tentos. We have already had access to R$200 million. The remaining R$300 million are going to be disbursed throughout this second half of the year. We remain confident that this will happen. I think we can move on to page nine now.
This is actually an update on that expansion that we've been having. Back in 2020, at the IPO, we were at 39 units. We are at 72 stores or business units. We learned from the market that we should call them stores, actually. We are processing 8,000 tons of soybeans a day. Três Tentos ranks among the top crushers, the top companies in Brazil. We are now, with the expansion in Cruz Alta and Vera, and at the same time maintaining and improving the Ijuí unit, on track to reach 10,500 tons a day. For corn and sorghum, just like I showed you in the previous picture—a picture was taken last Wednesday, the day before yesterday—we have 2,800 tons a day. Biodiesel from 1,150 to 3,000. Seeds productions, we had 600,000 bags a year.
We are at 700,000 with that production in Mato Grosso, with partner seed farmers, and the goal is to reach 1 million bags very quickly. Três Tentos' brand will be supporting other companies as well as the Araguaia River Valley. The fertilizer production, 150,000, we are at 200,000 now, and we're moving to 300,000 tons a year so that we can benefit from that region, what we call the Arc North. Rio Grande, Paranaguá, Santos, and the Northern Arc ports will be key in that sense. Via Mares, that's a company with which we have a joint venture, is already moving ahead to start construction. We are well on the way of that project. In mid-2026, we'll be able to start that operation in Meritituba so that we can start transporting meal, soybeans, and corn through barges to the ports up north, all from the Arc or the Northern Arc.
This screen provides us with a lot of optimism and once again shows the resilience of Brazilian agribusiness. On to the outlook for 2025. I'd like to start by praising farmers. Every agribusiness can only exist because there's a farmer that is dedicated, and with that calling, wherever I go, I don't see farmers that do not have, or farmers with the same calling that Brazilian farmers have. I can say that because I am also a farmer. I am proud to introduce myself as a farmer, just like many other farmers in several states, and they are hard workers and very dedicated indeed. That's why we have short, medium, and long-term planning activities that are very well structured, opening up new stores and expanding our industrial facilities because we want to make sure we want to be part of that ecosystem.
We are now going to be offering rural credit with Tentos Cap. We want to increase the access to credit to farmers, and we want farmers to have even better businesses. We know it's a challenge, and Tentos Cap is there to help them out in that sense. The outlook remains very positive, and I mean biofuels. This is true renewable energy. This is the green energy. Brazil is the largest soybean producer in the world. We need and we must focus on this area. On top of it, we can improve our yields in sugarcane even more. That's not our main focus, but we actually appreciate the work done by the sugar and alcohol industry even from the 1970s. Corn ethanol is there to strongly support in that sense. We already have B15 and E30.
Brazil can become even more relevant in that industry with that success story in renewable fuels. It can also provide cheap food so that we can grow with more demand and more volumes. That's why we are confident in our farmers. Let me now thank the Três Tentos team, a team that works very tightly together, and we make it all happen day in, day out in all our 72 business units, three plants, a fourth coming next year. Our heartfelt thanks to the entire Três Tentos team. We remain focused on technology because more and more technology is bringing us newer challenges, and Três Tentos is there to support farmers to bring them even more technology. The goal is to have sustainable agriculture across the board. Let me point out the partners we have in the grains origination. We want to bring the industry in the countryside of Brazil.
We are now building two industries in the countryside and now two other plants in the state of Mato Grosso. We're bringing knowledge. We're bringing infrastructure to provide opportunities for growth in those two regions. Let me address a partnership we have with Sinai in Porto Alegre do Norte. Two classes of young kids between 18 and 25, two classes of 20 students. They attended theoretical classes in the morning and practical classes in the afternoon. Once they graduated, all the families were there. Just the next day, they were already hired by Três Tentos. This is so gratifying to all of us. That's why I'm sharing that effort with all of you, because that's the country we want to work in, and we are very hopeful.
We're there in the Araguaia River Valley, in Porto Alegre do Norte, in Água Boa, and Confresa, a neighboring city in Porto Alegre do Norte. They were very welcoming, and we're now helping them grow. We have the support of the two cities and the entire region. 600,000 tons of corn originated there, and we've had fantastic partnerships throughout our 30-year history. Partnerships we have in many industries with major traders operating in Brazil. Três Tentos has offices in São Paulo. The work we do is to optimize and to improve the entire chain. From the very beginning, when farmers choose their seeds, all the way to selling it, to trading it in the market that is demanding food or energy. That's it for me. Thank you.
We'll now have the Q&A session. To ask a question via audio, click the raise hand icon at the bottom of your screen. At a time, you'll receive a prompt to unmute your microphone. To send your question in writing, click the Q&A icon at the bottom of your screen and type your question. Gabriel Barra from Banco Citi is asking the first question. Go ahead, sir.
Hello, Luíz. Thank you for taking my question. I have two questions. You have a somewhat higher leverage level for the quarter, but according to what Cristiano said about the investments, you had to use working capital as well. Can you elaborate on the trend, rather, of that leveraging? Have you reached its peak? As you open or you start production in your new ethanol plant, would that bring that down? The second question is about working capital. When you look at the IBTR, you increased the inventory levels for corn, but there was a small impact in soybeans and corn.
Rather in meal, you have more inventory for meal, much higher volumes than what you had last year. We would like to understand why that increased volume for meal inventory. Finally, I'm sorry for asking a third question. You talked about the plant in Porto Alegre do Norte and the problems you had in the past two to three weeks. My connection broke down a little bit. I don't know whether you've already mentioned it or not, but you maintained a guidance for early this year or early next year to start operation. You even mentioned that you could bring that earlier in December. What about that conversation or negotiations with the Brazilian Development Bank?
Good morning, Barra. Thank you for your question. The questions are very good. We'll be addressing the questions. I'll field the questions to my other fellow directors. Let me address the leverage and then BNDES, the Brazilian Development Bank, and then I'll turn it over to João Marcelo. Let me address the leverage first. Q2 has always been to prepare the company during the harvest. Premiums are down. That's when the company buys most of its grain for exports or even for its processing facilities that will go up the way to January and February. That's why we use more working capital. We showed you the chart of that trend. Of course, we have about R$ 1.2 billion, if I'm not mistaken, R$ 1.2 billion for the inventory build.
We have to take that into account, and another R$ 800 million that will include expansions, improvements, maintenance, everything we do to keep on operating with the best practices. That's exactly where we invest in CapEx. This is my take on the leverage. Let me point out how, or the liquidity of our inventory. Any of the Três Tentos products just now, I know that the trading desks are working. All you have to do is pick up the phone and you convert that into cash.
However, we have to be safe enough to have that physical ballast so that we can implement our very disciplined risk management strategies. We have physical inventories for corn, wheat, soybeans. When I say soybeans, I mean the complex. It includes soybeans, meal, and oil. That physical inventory supports us to implement the hedging strategies. We know that this is an inventory that has a lot of liquidity. As to the Development Bank, we remain confident that we'll be able to explain to them what happened.
I would like João Marcelo to address that second part of your question, to address corn and soybeans inventories and also the Development Bank. Then Cristiano can address the trend, right? Is that okay?
Sure. Hi, Gabriel. Let me address the soybean meal inventories. Shipments in the last part of the quarter slowed down a little. Maybe it's a week or two, maybe one or two shipments are held back. That will impact volumes dramatically because every soybean has about 50,000, 60,000 tons. If you have two weeks in which shipments are made, that volume is held back and will be carried over to the following quarter. It's not only soybean meal. Overall, inventories are being replenished, especially soybeans, because of a shorter Rio Grande do Sul harvest and a bumper crop in Mato Grosso. The guidance to conclude, or the conclusion guidance is maintained Q1 of 2026.
We had some leeway. Maybe we could anticipate a little bit, but the guidance has been Q1 2026, and we stick to it. I think Cristiano can address the leverage portion of your question.
Thank you, Barra, for your question. I think it was clear, right? We have about R$ 400 million in meal, R$ 100 million from bio. This is inventory that is about to become revenue. Meal at the port, just like Marcelo said. As to the debt with the Brazilian Development Bank, interest rates are below market averages, and we looked for alternatives to keep the construction going. We know what levers we can resort to if that revision takes longer than expected. Just like Luiz said, they asked for questions. We have already replied to all of those questions.
We believe that the company can use its own cash, its own credit lines to keep on concluding that construction and keep on expanding other industrial facilities. There may be a difference in the interest rate, but we'll be able to manage.
Thank you. That was very clear.
Guilherme Guttilla from BTG Pactual asks the next question.
Hello, good morning. My first question is about the inputs. Margins have picked up this year when compared to last year. What's your take on the competition in this segment? Have you been able to increase margins even more, bringing that to historical levels? Now on to the industry part of your business. Margins have been coming down gradually, maybe less this quarter than most would expect. It's even showing some more resilience. What's your take on that margin because of the decreasing meal prices?
Good morning. Thank you for your questions. Inputs, João Marcelo can help us in addressing the inputs and also about the margins. Now, with introduction with a B-5 starting in August 1, but will impact September and October, we'll be able to address the meal volumes in the market, the demands, the exports. I think João Marcelo can field both questions.
Hi, Guilherme. As to input margins, we believe that in recent years, they're getting back on track. There are some seasonal effects, product mix, any specific quarter. However, we believe they are going back to normal levels. You had the canola inputs bringing in a more robust product mix, helping in sales, and we are confident, especially because the second half of the year, as far as inputs go, is a positive period. We had a good harvest in Mato Grosso.
Of course, it helps farmers to invest more in technology and in products, and it also helps us in that product mix, as I said. As to the margins in the industry part of our business, margins are under pressure in recent times, and that is driven by higher soybean premiums being practiced in that sector. The way we see it, we see some offsetting effects. Number one is B15. That can bring an important demand boost for biodiesel. That, of course, will help us in our margins. There's more. These premiums for soybeans that are pressuring industrial margins are driven by the trade wars, especially between the U.S., and China. This remains very unstable, and any movement that will help the U.S, and China in their negotiations will bring soybean prices even further down. We'll balance off the soybean meal margins. The outlook remains favorable.
I understand. Thank you.
Pedro Fonseca from XP Inc. is asking the next question.
Good morning, Luiz, João Marcelo, Cristiano. Thank you for taking our question. Let me go back to a comment that you made. Logistics expenses, we had to come up with alternative routes, better partnerships. We would like to know whether you can comment on these initiatives. What types of gains have you managed to collect? What's your expectations for the coming quarters? Now that you're improving in the logistics efforts, Luiz talked about Caramuru starting next year. Is there a possibility to ramp up the meal business, selling third-party meals as a new avenue for growth? That's the first question. My second question is about the inputs business. You have greater share in Mato Grosso. When you extrapolate that of Rio Grande do Sul, that's growth that stood out, a very substantial growth.
We hear that Rio Grande do Sul is delayed a little bit, a little bit in that sense. Can you break that down? The volumes in Rio Grande do Sul? Does that make sense? Have you identified that delay in purchases in Rio Grande do Sul? Based on the demand side, where and how much technology is going to be used in 2025, 2026 in the state of Rio Grande do Sul?
Good morning, Pedro. Thank you for your question. I'll be able to address those issues by talking about the company. Let me start by making an overarching comment about the Três Tentos ecosystem. Let me say that relationship with farmers has been very important to us. As far as technology goes, the origination of the grain, and all the way to that trading of that grain, as well as the industrial products.
Our main focus for trading, for the industry part, for grains, we first want to support all originations, all the businesses conducted within the company, having the industrial portion and the exports, just like we do, deep down in our country, in the heart of the country. We are improving logistics on a daily basis, both in intelligence and infrastructure terms. I believe that João Marcelo can address that inputs question and logistics, and specifically about third-party meal trading. It's not on our radar at the time because we already have important meal production. We're always expanding that production based on our capacity to move that production. We don't want to be exposed to any inventory-related issues. Of course, all our industrialized product can be moved to many or to the main ports in Brazil. Over to you, João Marcelo, to address those questions. Thank you, Pedro, once again.
Good morning, Pedro. Let me address the logistics part of your question. We've been trying to optimize logistics. In this quarter, you have what we call executed logistics. We had higher meal inventories, and they were already at the port. That means the logistics portion was concluded. Let me point out that we keep on trying to optimize our operations. Once we grow our industrial capacity, we had to resort to alternatives, especially Mato Grosso. That's moving production through the northern Arc. That's a very good logistics alternative. The meal trading operation is a marginal activity. That's not our focus. The focus is to support our industrial expansion and our own meal production. As to inputs, your interpretation is perfect of those numbers. There's a different situation in Mato Grosso and Rio Grande do Sul.
You have record harvests for both soybean and corn, and they're looking for higher technology input. In Rio Grande do Sul, there is that delay in the purchasing of inputs, especially for the summer crop. Rio Grande do Sul traditionally is a state that purchases inputs a little later. It is delayed, but not so out of sync of what happens there. As to the technology level in Rio Grande do Sul, we keep on monitoring, but there may be some differences. There may be some, but the way things are today, they cannot be delayed that much as far as technology goes. For the winter crop, canola brought in important volumes for inputs. Let me point out that Três Tentos is a company that has many other activities other than ag inputs. The goal is to grow and consolidate.
As we expand in our number of stores, our reps, the regions keep on consolidating. The consolidation cycle is between three to five years. There are stores that were opened at the IPO five years ago that haven't reached its full capacity yet. It has been a very virtuous cycle because we're expanding not only in the number of stores, and we see stores that are not yet mature, they still bring in better and better results.
That was very clear. Thank you.
Gustavo Troyano from Itaú BBA is up next.
Good morning, folks. Thank you for taking my question. My question is about inputs, but focusing a bit more on your relationship with farmers. The context I would like to give you is the following. Given the difficulties last year, worse margins that reflected in the resellers' capacity, that gives us the impression that once you have overcome that hurdle, we are under the impression that your diversified policy portfolio helps. That's why I have this question.
What's your take on that relationship with farmers in those regions where other resellers had to shut down? Do you believe you have been able to gain market share due to that good relationship you have with farmers? Being able to overcome that crisis with a strong and healthy balance sheet. How did that play out to you? How did you come out of it unscathed?
Thank you. Good morning, Troyano. It's great to talk to you. Thank you for your question. João Marcelo and I can address that answer. The relationship we have with farmers, that has happened for 30 years. From the very first customer, we maintain that customer up to this day. That is very gratifying. We've had ups and downs in that 30-year history. Most of those times, we had good outcomes. We've had some margin problems, some weather-related events, but that relationship is the backbone of everything we do at Três Tentos. It's not only based on casual meetings. Rather, it's based on a consistency in our business.
We have access to state-of-the-art technology. We can actually resell that from multinational corporations to those farmers, products that will make a difference in their yields, fertility, identifying the needs for nutrients on the soil, and with our initial business, and I mean seeds, these things will impact the farmer's investments. That is derived from good genetics and appropriate to many different regions.
When we at Três Tentos are very close to farmers out on the field, but based on consistent businesses, it includes inputs, of course, and as a consequence, the trading of the grains can be even stronger, establishing that trust, that relationship with trust, the solidity of the company, having all its positions hedged. We're not exposed to market fluctuations. We have that physical inventory, and that provides security to farmers, which only strengthens that relationship with farmers overall. João Marcelo can address that question too.
I think your explanation was perfect. Once again, let me point out that the ecosystem solidity, that true identification with farmers. We, of course, are a very hands-on company. We work with them day in, day out. We live their pain. Just like I said, we grow and consolidate. That's our strategy. By being there with farmers, day in, day out, we prove to them the value we can bring to the table with skilled labor, committed with that true identification. We hear, we feel them. We hear them, we feel their pain, and we work together to address their day-to-day activities.
Thank you, Luiz Oswaldo. Thank you, João Marcelo. That was very clear.
Matheus Enfeldt from UBS asks the next question.
Good morning, Luiz, João, Marcelo, Cristiano. My question is about delinquency rates. 4% of PDV of receivables. It's only natural because of the exposure in Rio Grande do Sul. What's your take for the remainder of the year? What about the renegotiation levels for the quarter? Did you have to renegotiate larger volumes that impacted receivables for the quarter? My second question is about market share in retail. You were at about 20% in Rio Grande do Sul. Is that number the same in that region? After four years in Mato Grosso, can you elaborate on the ramp-up of the stores? In time, have you reached the market share level that is ideal in the 163 highway? Is there any room to get to 15% market share in the region? Thank you.
Hi, Matheus. Thank you for your questions. About PDV and all the renegotiations are connected to Troiano's question a while ago, a question about relationships. João Marcelo can address that and can address market share. Before he answers those questions, let me once again address how welcoming these regions are once we start operations with our plants or stores and that strong connection with farmers. It's legitimate. That identification is true. That is owed to the Três Tentos team right there on the front line, working together with farmers. João Marcelo, please address the renegotiations question.
Good morning, Matheus. Let me address delinquency rates. We've had some problems, weather-related mostly, and we believe that delinquency rates are consistent with historical levels. Renegotiation levels are very similar to those of last year. There hasn't been any change, and this is positive, after all. Of course, we keep monitoring very closely, trying to come up with the best alternatives for them. It's even better than we expected, to be honest. As to market share in inputs, we still have stores growing in that maturing phase. We have maintained that pace of new stores, and these stores keep on bringing in market share gains. It's more intense in Mato Grosso. Of course, the market is bigger, and the growth was bigger there too. Along the 163 Highway, we are at a more advanced level as far as market share goes. There's more competition, the highest competition in Brazil, probably.
We are gaining ground little by little, consolidating our stores, our teams, just like I said. Farmers understand that effort, and they have been responding positively to our value propositions and our objectives. In the Araguaia River Valley, despite being a more recent operation, the results are positive. I mean market share. The potential there is huge in terms of growth, technology. Good farmers operate there. We have been able to gain traction even faster than we had at the 163 Highway. As to the market share number, per se, I think we are on track. We keep on working, and again, it's in line with our expectations, with maybe a more upside bias, if I may.
Since there are no questions, we conclude the Q&A session. I'd like to hand the call over for the closing remarks.
Thank you very much. Thank you for your time. Let me once again say that we have an open channel of communication to share any information and, of course, to discuss the market because we like doing so. To wrap up, I would like to invite you to analyze the first half of this year. Três Tentos is proving once again the hard work and the good work we've been doing with farmers, as well as the work with other stakeholders. Gross revenue, R$7 billion, 29% growth year- on- year, R$1.2 billion gross profit, R$820 million last year, 46% increase, significant, and adjusted gross margin of 17.2%. 2.1 percentage points when compared to last year's numbers. This is very important to all of us, to us as a company, to the agribusiness, and a company that is growing and consolidating. Given the ecosystem we have, we had growth across the board.
We have been able to synchronize the entire ecosystem, adjusted EBITDA of R$471 million, 113% increase. This is outstanding. EBITDA margin came in at 6.7% this half, 1.2 percentage points above the first half of 2024, and an income of R$523 million compared to R$302 million in 2024. A 73% increase in net income. Net margin 7.4%, 1.9 percentage points above 2024. Just look at the numbers. Just look at the financial statements of Três Tentos and t his is cash. Três Tentos is and will continue to be a cash-generating company. We will be even more responsible, more cautious in our infrastructure to better allocate that capital, so that we can provide more and better solutions closer to farmers in the heart of Brazil. Thank you all so very much once again.
This concludes Três Tentos Q2 2025 Earnings call. Our IR department is available to answer additional questions. Thank you for joining us and have a great day.