In This Article:
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Net Revenue: BRL 644 million for the first six months of the fiscal year '25-'26.
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Adjusted EBITDA: BRL 78 million for the first six months.
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Net Income: BRL 77.8 million as of December 31, 2024, compared to BRL 24 million in the previous year.
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EBITDA Margin: 31% for the first half of the fiscal year '25-'26.
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Sugarcane Harvest: Approximately 2.6 million tons, an increment of 4.3%.
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Sugarcane Productivity Growth: 3% increase.
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Debt: BRL 798 million with a cost of 93.4% CDI.
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Net Debt: BRL 516 million.
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Real Estate Sales Revenue: BRL 129 million from property sales.
Release Date: February 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Brasilagro - Cia Bras de Prop Agricolas (NYSE:LND) reported a net revenue of BRL 644 million and an adjusted EBITDA of BRL 78 million for the first half of the year.
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The company experienced a 4.3% increase in sugarcane harvest, with a 3% growth in productivity, contributing positively to EBITDA.
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There was a significant recovery in ethanol demand due to changes in gasoline ethanol percentage, boosting market reaction.
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Brasilagro has diversified its crop portfolio beyond sugarcane and soy, reducing climate change risks and enhancing real estate value.
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The company has been proactive in managing costs, achieving stability in fertilizer prices and reducing replantation rates significantly.
Negative Points
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Soy prices dropped by about 9% from January 2024 to January 2025, impacting revenue.
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Cotton experienced major reductions due to economic factors, affecting the company's results.
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The beginning of the rain period was delayed, impacting the initial stages of crop growth.
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High interest rates have increased the cost of capital, posing challenges for leveraged operations.
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The company's stock value remains low, and there is no current buyback program authorized to address this.
Q & A Highlights
Q: Can you confirm the expected margins for the off-season cotton harvest and discuss sugarcane productivity given recent weather conditions? A: We managed to plant the off-season cotton within the ideal window, and corn prices have improved, enhancing margins. Initially, we projected margins of BRL 400-600 per hectare, but these have improved with better corn prices. Regarding sugarcane, productivity is expected to increase due to investments in irrigation and plantation, despite a delayed start to the rainy season. We anticipate a positive impact on sugarcane productivity in the coming year.