Good morning. Welcome to the video conference to disclose the information from the second quarter of 2025. This video conference is being recorded and the replay can be accessed on the website of the company, where the presentation will also be available for download. We inform that all participants will only be watching the video conference. Later on, we are going to begin the Q&A session when further instructions will be supplied. Before we begin, I would like to reinforce that the prospective declarations are based on the creed and suppositions from Vittia and the current information that are available for the company. These declarations can involve risks and uncertainties considering that they regard future events, so they depend on things that may or may not happen.
Investors, analysts, and journalists should consider that environment situations involving the macroeconomic events may make the results differ from the ones that are presented in the prospective declaration. We have here in the video conference Wilson Romanini, CEO, Frizzo, CFO, and Edgar Zanotto, the Innovation Director and New Business. I would like to pass the floor to Wilson Romanini that will begin the presentation.
Thank you, Laís. Good morning, everyone. We are here going to present to you the second quarter of 2025. I think that there is something really important within our company, despite this challenging scenario in the agrobusiness, given the high rates of interest, the commodities with reasonable pricing. However, Vittia is having an excellent work being performed. We have an important cash flow of BRL 115 million. We have a growth in soil fertilizers, which shows that the product is understanding what needs to be produced. The farming is investment in your soil with positive characteristics to have a better harvest. Considering what we have been talking always. Working towards a process of internal rationalization. We have a decrease in our SG&A, getting our resources in the best way possible. We have an EBITDA that is almost BRL 14 million in the first semester of 2024.
A growth of revenue, which is not translated into the best results yet, as we are now performing business with products with a smaller margin. But we have an important portfolio, and we hope we can have a year that will be truly positive for our company. We have our program for repurchase and the JCP, in which we are having results to distribute to our workers within our company. We have the launches, new launches. I think Edgar will talk about them. Ever since Vittia is going through a moment, despite all the difficulties within the scenario, we can see that we are doing whatever we can and we are working really well. Now we can go forward. Talking about our performance, we had, despite all this scenario, we have a growth in our revenue. As I have told you, the producer is investing.
They are applying for soil micronutrients. This has an important characteristic where they are leaving the soil ready for high productivity. We are working effectively in working with our expenses, and despite this scenario, we have a strong cash generation, showing that we are really backed up and working very well with credit concession within the market. Now that we talk about risks and opportunities in the current scenario, we still have a challenging scenario for Brazilian agrobusiness. Vittia, within its way of conducing business, is being able to have a good balance within its functional groups. About the off-season crops, they are being really interesting. We do not have an attractive pricing, highly attractive pricing. However, we are having a profitability with producers. Within this scenario, farmers are resisting closing business.
We understand that truly, we will have a second semester that will be truly strong when we talk about such definitions, and they are the products where Vittia is leading with technology, where we can aggregate a more interesting value. As I have said, and Edgar will further explain about the launches, this has been aggregating a potential for revenue within our company. When we talk about our position, we have, and you know really well, we have a long history within agrobusiness, and we understand that we need to be rational when we think about debt. Our company has a comfortable leverage. It is balanced when we talk about such a thing, as we know that the agribusiness has its moments that are really good and those that are really difficult. So the financial solidity is one of the principles of our means to manage our company.
Every time we are close to rural producers, it is an important thing for us to talk about. We have been working in other areas, other cultures, and thus reinforce our position within the market as a whole. Our evolution is constant. We try to evolve. Our RD&I is robust, and this is a work that we continuously perform within our company. Another important point within Vittia is that we have a verticalized process, and there is just the capability in terms of cost when we talk about competitive costs. Without a doubt, we have a more robust portfolio within the market when we compare to our competitors. Frizzo, you have the floor.
Good morning, everyone. Now I will detail our financial performance. Going through the growth of our net revenue per segment. We had, as Wilson mentioned, a growth on the quarter on our foliar soil fertilizers, a growth on the semester's vial on biological and natural solutions as foliar fertilizers and industrial products. We had a decrease for the quarter. For the foliar, we still keep a growth when we talk about the year and for biological and natural solutions, we had a three. This movement of growth in cells for micronutrients fertilizers can be an indicator that producers will invest. This line is one where producers have the anticipated definition, the soil line, and we are seeing a delay on foliar and natural and biological solutions. We can see that they still have some business being closed later on, even what we had last year.
However, this is a line where in this quarter we already have an expressive profit. These are projects where we can already deliver on the second quarter. The second quarter is one that had this characteristic of being impacted. Those who have a later definition from producers were impacted by this current moment where we have a certain uncertainty that has impacted producers and has been making them delay their purchase decisions. Later on, we will understand better how those things work out in proof for the 2025, 2026 harvest. We just know that they are delayed and the negotiations are coming at a later time. In terms of our gross profit, we had a drop for the quarter and in the semester. This drop is due to the mix both on what is consolidated as the soil fertilizers was the one that grew the most.
However, is the one that has the smallest aggregated value. However, within the segments, when we observe these segments, for example, for foliar fertilizers, where we have a complete portfolio with high technology solutions, we have also seen a mix where solutions of medium and low within the semester ended up performing more than the high technology solutions. For biological solutions and natural solutions, we can see that in the semesters, we had a mixture where the lowest aggregate value products have a better performance. We had the Triunfe, which is a product that has a smaller aggregate value than the biological fertilizers. So we had a higher weight for natural solutions than for pesticides that have the highest value.
Although we see, and this is a point that will possibly will be an agenda in our Q&A, we have a scenario nowadays that is still with a lot of pressure. We don't see a lot of drops in prices. However, with these small decreases, it's not a scenario in which we can pass this pricing on. However, for biological fertilizers, looking at the lines that we have, we have no expressive drops as we are now considering being able to compensate this small drop in prices with a higher efficiency in our productive system. We have a margin within the fungicides and insecticides line that is relatively similar with the same period that we had last year. However, we compensated the drop with efficiency. For full year fertilizers, we see similar margins when comparing to last year. We see some decreases.
However, without a similar scenario like last year, in which we saw major decreases. So although we're seeing decreases, we can see that everything mixed in this scenario. We had a margin recovery for soil fertilizers, and I believe that this is due to the reduction that we had in our organomineral line. We have been reducing it trying to solve an issue, and according to what was disclosed in our ADF, we closed the operations in Patos de Minas on July 3rd. It was an operation that had been causing some prejudice. Semester- by- semester, we were trying to close it off, and we have now been able to finish it in this quarter, where we are going to have the report of this closure and the impact that will only be available for the next quarter.
Under this same point of SG&A, we have been keeping our strategy and have had results. We had a small growth of around 1% for the quarter, and we have kept a drop for the semester. It is important to say this is not what we hoped for the year. This is due to the things that happened last year that are being reflected upon this comparison semester by semester. However, we understand that in the second semester, we're going to have a flow aligned with our strategy of keeping our activities standing for RD&I and market development. We have already performed adjustments last year, and now we understand that the structure that we have made available is the correct one. As a result, we have an EBITDA that is slightly negative when we compare to last year.
It's important to highlight that we always hope to have a negative EBITDA in the first semester. This is a thing that is traditional in agrobusiness in Brazil. It's the seasonality where we have the summer harvest impacting on the numbers of most companies. We understand that this slight drop does not represent what we intend to do throughout the year. We're talking about a delta of BRL 2 million, although the percentage is important, we see it's around BRL 2 million. Among our CapEx, we have been keeping our strategy. We have announced last year as SG&A, CapEx is the result of actions that have been taken last year. We have been invested in projects of smaller financial impact. However, one that will impact our operational efficiency and cost reduction.
What we highlight for 2025 is the line that will back our growth in natural pesticides, which will be our launch of Triunfe that Edgar will mention how the launch is going. A relevant point to mention for this quarter is that we had a lot of success on the 2024, 2025 harvest when we talk about our cash flow. This is due to a commercial strategy of sustainability when we seek partners, long-term partners, and aligning our commercial and financial views. Despite having a complicated scenario when we talk about credit for agribusiness, we have been keeping our indebtedness in low standards, and we had a maximum performance allowing for us to significantly reduce our leverage and have a net debt smaller than last year. We have 0.88x of net debt, EBITDA against 0.96x when we compare to the same period of last year.
We understand that this is an excellent performance for cash flow, especially when we consider that we have also invested for JCP and our repurchase program. We have almost BRL 40 million that we allowed the company for as a return for our shareholders. Even so, we have reduced our leverage index. Let's remember that this is a strength in the current scenario. Vittia has a position in its cash that is comfortable, and it makes us feel at ease to spend these most difficult moments and see the opportunities that arise in the market. Regarding the financial result, we had a natural worsening due to the growth of the basic interest rate. We have an important growth that has impacted our financial results under this standpoint of income tax and social contribution this year.
When we compare the same base result, we end up eventually have an aliquote that is 34%. As a result of this trimester, we had a bigger prejudice when we compare to last year when we look at the trimester in this semester. Now I pass the floor to Edgar, so he can mention our innovation.
Thank you, Frizzo. Good morning, everyone. As was mentioned on the launch that we had, we are focused in communication. You may have seen those who follow our social networks. What I can say is that we are going to surpass what we planned for this year for this project. What we had imagined that we could arrive to, we are going to perform even better than we thought of. The work that we have been doing has shown the results of the consultancy that we had. Things seem to evolve much faster than what we were hoping for. This is what I can say for now.
We had other two launches to substitute products that we have in our portfolio, the Meta-Turbo Max to substitute the Meta-Turbo, and the WP to substitute the Bovéria-Turbo. Within these two insecticides, they are a fruit of our RD&I, in which we have been using new Metarhizium anisopliae and other types of fungi. What changes is that they are more aggressive. They are both insecticides. It's as if we had two big dogs protecting Vittia, and they are doing their excellent job. Now we have two big dogs working. These are dogs that now can bite people. Basically, this is the change that we have been doing now, and we believe that this product will evolve really well. Very few companies have such technology for this product. Let's go for the next one.
When we talk about RD&I, we have been keeping our investments, especially when you look here, the CapEx. OpEx, we have a seasonality, and sometimes you have more or less investment. However, we continue to invest with all of our active projects. We didn't finish any projects. Actually, we have increased some products recently. Projects. We have three new registries, projects that are being launched, two new recommendations for biological use targets, some products that were not yet registered. Now we have new things to show, and we have a renovation of a new product that we'll be able to show soon. An important thing, I can see that there will be a question about this, about the commercialization of Vittia México . We have a first digital market, not one.
We have a portfolio of 12 products that can be commercialized there, but we are still focused on the development of the market. We have a team of market development, and we are serious. Since they are already gone, we are now going to develop our market to have business for next year. Next one. Now, I give back to Alexandre Frizzo.
Regarding our stock market, as you all know, we went through a difficult process, not only at Vittia, but agribusiness itself and stock market itself. So our stock ended up not having the performance that we hoped for. What we highlight is the repurchase program, where throughout this semester, we had more than BRL 10 million invested in the repurchase, believing that our stock do not express our intrinsic value. Our idea, as I say, is to not have an aggressive repurchase, but given this difference between the market value and the intrinsic value, we decided to allocate resources that are for shareholders. We are positioned to be performing this movement regarding the severe availability of resources. They also have a business approach in keeping our distributions with BRL 22.7 million of resources for our shareholders, considering the dividend yield, generating a dividend yield.
Now we can go for the Q&A session.
We are now going to begin the Q&A session for investors and analysts. If you wish to make any questions, raise your hand to ask through voice or use the Q&A to write the question. Our first question is from Gustavo Troyano , Itaú BBA .
Good morning, everyone. Thank you for selecting me. First of all, when you talk about the biological segment, focusing on the EBITDA, I think you were able to explain what happened in the quarter given the delay in different negotiations, but you have also said that the portfolio of requests was better. If you could explain how is the commercialization for the year, how do you believe that this is the dynamic when we talk about pricing? What about the gross margin? Do you believe that this mix of smaller strategic value will be kept for the next quarters? My second question is about the allocation. The cash flow was really positive for the year. It seems that throughout the year we during the last capital. What do you think about how you are going to allocate the cash for the company?
Are we going to have more buyback, distributions for shareholders or M&A? This is my question.
Wilson, you are muted.
Okay. Hi. When we talk about your question, we truly had a major movement in solid fertilizers, especially in micronutrients. As Claudio has said, this shows that farmers are investing. This is part of the process, and it is truly important. When we look at the year, we truly have a producer that is more concerned with certain means of conducing things. They are correct. They should observe, or they want to understand things more. However, Vittia has been working with structuring in commercial business, this proximity with new cultures, new markets, new areas, and this has been enabling for us a higher business volume. When we look at our portfolio, it is extremely interesting, better than the previous market, especially when we introduce these other technologies for fertilizers and so on.
We understand clearly that we will be able to perform in a positive manner in 2025. That is the work that we are doing. We have within the market a major concern with credit. The market, I mean, everyone is noticing we have a high interest rate, a certain rate of leverage in the sector that is really high. But we have been working internally. We have moved ourselves so we could offer good solutions for the market towards having good partners. In a matter of pricing, we see no increase in prices. The decreases that we saw back then in 2024 are not happening. As Frizzo has said, these are just some things that happen here and there. I believe that we have the possibility to have a positive year with Vittia.
An important point that I would like to highlight is that Vittia has become characteristic in the industrial process. When we perform an analysis with our competitors, we are within a more positive position. Vittia is a company that basically does almost everything within it. This gives us a capability. We can face the market. We can be competitive. We can take the producers in potent cost-benefit relationship. This is the work that we have been doing for a while, and the allocation of capital, I believe, that is a key for this year.
Thank you, Wilson.
Regarding the capital allocation, we are going to give the strategies. We continue to work. However, the temperature right now is medium to low. There are opportunities in the market. It is about the leverage and the need for money, for restructuring, and so on. To seek something on this sense. We are being more careful with our M&A. When we talk about these opportunities, we can see that we have a capital cost that is higher and for our own value. We barely see a transition in the target market and the level that we are talking about right now. We are a little more, we have more setbacks, which makes us obligated to repurchase. As I have said, our strategy was always to have a market as a partner.
We would like to have a more representative market in the end, increase the liquidity of our shares and our stock. Now we are having to basically have to do the repurchase within the scenario, which is what we have been doing, and gradually, without impacting our cash flow or market. Then we can increase the distribution. Last year, we had a restriction of distribution of 30%, given the operation that we have with the [Banco Regional de Desenvolvimento do Extremo Sul]. We do not have this limitation this year, so we can increase the distribution. As I understand that the level that we have for our leverage is a minimum level. We would not like to have a zero net debt. I do not think that is efficient for our business as it has a cash flow. It also has a project-led financing.
I do not think it is interesting for us to have a zero net debt. This is the idea. On the other hand, I do not think it is time to leverage this cost and with this uncertainty, not only on the annual but in the country. Understanding that next year is election year, where everything is much more volatile. We have an interest rate without signaling any drop and with an election year. Truly, it is what I have said, we need to look at the repurchase program as it is evident under this standpoint of return and cost for our shareholders.
Perfect. Thank you.
Remembering that to make questions, just raise your hand or click on the Q&A to write your question. Now we are going to have the buy-side analyst. Good morning, I am [Igor Solution] with Indica. What are the expectancies and strategies for Vittia México for the next 12 months? How does this alter the allocation of capital in the company? This is Johnny Nicholas, the sell-side analyst.
Well, I just would like to say about the allocation. We had the investment of the company, new cooperation, that has a social impact, especially on our expenses. Ever since the beginning there, we spent $1 million that appear only on the expense. It's not a revenue. But $1 million is not something relevant when we consider our allocation strategy. Edgar will further explain as we have the expectancy that for the next year, we are going to go for three. We don't see any short-term possibility for spending relevantly in Mexico. Edgar, can you explain the perspectives?
Okay, thank you. As I have said in my presentation, we are truly at a moment to develop our market. We already have some relevant clients to continue with our work, and now we will continue with our manufacturing here in Brazil. At least initially, our strategy is not focused on investing in manufacturers, and that is why we have not changed our capital allocation. We understand that next year we will begin, as Frizzo said, to have three keys. The consulting work being assembled and the expectancy in that for next year, we are starting, we will start to have some results. But still little, it won't be something that will change our history for next year.
That's it. The Q&A session is over. We would like to thank the board and the company so we can make different considerations for the company.
Once more, thank you so much, Laís. Good morning. What we can inform for those who are hearing us and for the market as a whole, Vittia is a company, as I have said, that has more than 50 years. Already went through many phases within the Brazilian network business. It should be intensively on giving you an hour and our work here, truly, is to make things work positively. This is the work that we have been doing. It's a company that has its responsibility. It's a company that truly, when we talk to the market, we try, we are actually transparent, and this is how we will continue, and we are going to go forward. Thank you so much, and see you next time.
The video conference is now finished.