Boa Safra Sementes (SOJA3) Q1 2025 earnings summary

Executive summary

• Net revenue reached R$131.2 million in Q1 2025, up 90% year-over-year, driven by strong soybean seed sales, diversification into new crops and services, and expansion into new regions.

• Net income rose to R$16.9 million in Q1 2025, up 108% year-over-year, reversing a loss in Q1 2024 and reflecting improved operational efficiency and margin expansion.

• Adjusted net income turned positive at R$0.7 million, compared to a R$5.8 million loss in Q1 2024, highlighting the impact of diversification and operational changes.

• SBS Green Seeds joint venture was launched, targeting regenerative agriculture, with an initial 30% stake and potential to increase to 60%, and two new processing units were opened in Paraná to strengthen presence in southern Brazil.

• The company received recognition for innovation, sustainability, and governance, including awards for industrial seed treatment and sector leadership.

Financial highlights

• Gross margin improved from -11.2% to 9.3% in Q1 2025, reflecting a shift toward higher-margin seeds and operational recovery.

• Adjusted EBITDA for Q1 2025 was negative R$28.6 million, similar to Q1 2024, but LTM adjusted EBITDA fell 32% to R$183.9 million due to lingering weather impacts.

• Operating cash flow improved to -R$90 million in Q1 2025 from -R$143 million in Q1 2024, despite increased working capital needs.

• Client advances more than doubled to R$44 million, indicating strong demand and a solid order backlog.

• Cash and equivalents plus marketable securities totaled R$895 million, supporting a net cash position of R$50.5 million.

Outlook and guidance

• Management expects continued growth in 2025, supported by expanded production capacity, new regional presence, robust order backlog for soybean seeds (R$1.4 billion, up 40% YoY), and further market share gains, especially in the South.

• Expansion into new crops and services is expected to mitigate seasonality and drive sustainable growth.

• Management notes that future performance is subject to risks and uncertainties, with no obligation to update forward-looking statements.