In This Article:
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Net Revenue: BRL1.1 billion.
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Net Profit: BRL227 million.
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Adjusted EBITDA: BRL279 million.
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Proposed Dividends: BRL155 million.
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Real Estate Sale: Chaparral Farm sold for BRL365 million.
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Production: Over 2.3 million tons.
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Sugarcane Harvest: 1,975,000 tons with an estimated TCH of 83.7.
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Debt: BRL680 million with BRL209 million in cash.
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Net Debt: BRL520 million, with BRL770 million in receivables.
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Dividend Proposal: BRL155 million.
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Net Margin: Slightly higher than last year.
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Operational EBITDA: BRL31 million, down from BRL190 million last year.
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Commodity Prices: Soybean, sugarcane, and cotton prices dropped around 20%.
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Debt Composition: 100% CDI index, low interest rates.
Release Date: September 04, 2024
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 BRL1.1 billion and a net profit of BRL227 million for the year.
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The company successfully sold a significant portion of Chaparral Farm, demonstrating resilience in the real estate market.
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Brasilagro implemented 600 hectares of irrigation with plans for an additional 900 hectares, enhancing farm stability.
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The company is diversifying its crop portfolio, moving beyond sugarcane and soybean to include cotton and other crops.
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Brasilagro maintains a strong financial position with a net debt that is effectively negative when considering receivables from farm sales.
Negative Points
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The company faced a challenging year with lower-than-expected operational EBITDA due to declining commodity prices.
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Soybean production was affected by adverse climate conditions, particularly in Paraguay, leading to lower yields.
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The price of sugarcane dropped significantly, impacting the company's margins and profitability.
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Brasilagro's operational EBITDA decreased from BRL190 million last year to BRL31 million this year.
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The company is cautious about purchasing new farms due to high land prices and is waiting for a potential drop in prices.
Q & A Highlights
Q: Can you explain the expected productivity growth for soybean and corn, considering climate normalization and land development? A: Andre Guillaumon, CEO, explained that productivity gains are expected due to both climate normalization and land development. The climate is expected to be more neutral, which should improve productivity. Additionally, land development, particularly in areas like Mato Grosso, will contribute to increased productivity. The expected gains are approximately 40-45% from climate normalization and 40-45% from land maturity, with the remaining 10-15% from organic maturity of the company's areas.