São Paulo, Today – BrasilAgro, a leading player in the agriculture production - crops industry, announced robust financial results for the first quarter of the 2024/2025 crop year, ending September 30, 2024. The company, listed on B3 (AGRO3) and NYSE (LND), reported a Net Income of R$97.4 million with a net margin of 21%, and an Adjusted EBITDA of R$169.4 million, marking a 37% margin.
The quarter was characterized by significant commodity price volatility and exchange rate fluctuations, posing challenges at the outset of the crop year. Despite these hurdles, BrasilAgro's strategic hedging and commercialization tactics, coupled with efficient production cost management, led to improved margins per crop.
The company's operational Adjusted EBITDA of R$61.4 million represented a 166% growth year-over-year.
Agricultural operations saw 34% of the soybean area planted, with 76% of soybeans in Mato Grosso sown within the optimal window. A weak La Niña weather pattern is expected to favor rainfall distribution in the regions where BrasilAgro operates.
Additionally, the company delivered 1.6 million tons of sugarcane from the 2024 crop, with a yield of 84.72 tons per hectare, overcoming the previous cycle's challenges. By December's end, the company anticipates delivering 2.0 million tons in line with projections.
The real estate segment also contributed significantly, with the second part of the Alto Taquari farm sale bringing in R$189.4 million, completing a transaction initiated in October 2021. The total internal rate of return for both stages was 18.6%.
Furthermore, on October 22, the General Shareholder Meeting approved a dividend distribution of R$155.0 million, equivalent to R$1.56 per share, translating to a dividend yield of 6%. This move underscores BrasilAgro's commitment to shareholder value.
The company also celebrated receiving the Great Place to Work (GPTW) seal and the Great People Mental Health seal, recognizing its efforts to foster a positive work environment and promote employee well-being.
BrasilAgro's property portfolio spans across six Brazilian states, as well as Paraguay and Bolivia, totaling 271,016 hectares. The mix of owned and leased land offers flexibility in portfolio management and helps mitigate cash flow volatility.
This quarter, BrasilAgro's net revenue from farm sales and agricultural product sales totaled R$454.6 million. The company's strategic approach to its diverse crop mix, including grains, cotton, and sugarcane, has been optimized for profitability.
The financial information presented is based on a press release statement.
InvestingPro Insights
BrasilAgro's strong financial performance, as reported in their Q1 2024/2025 results, is further supported by data from InvestingPro. The company's market capitalization stands at $417.55 million, reflecting its significant presence in the agriculture production industry.
InvestingPro Tips highlight BrasilAgro's attractive valuation and dividend policy. The company is currently trading at a low earnings multiple, with a P/E ratio of 10.56, suggesting potential undervaluation. This aligns with the company's robust financial results and strategic positioning in the market.
Moreover, BrasilAgro pays a significant dividend to shareholders, with a current dividend yield of 5.93%. This is consistent with the company's recent announcement of a R$155.0 million dividend distribution, demonstrating its commitment to returning value to shareholders.
The company's profitability is also noteworthy, with InvestingPro data showing a gross profit of $48.55 million and an operating income of $25.96 million for the last twelve months. These figures support BrasilAgro's reported strong performance and efficient cost management.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for BrasilAgro, providing deeper insights into the company's financial health and market position.
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