Boa Safra Sementes (SOJA3) Q3 2024 earnings summary

Executive summary

• Net operating revenue for 3Q24 was R$727.4 million, down 26.3% year-over-year, with net income for the nine months at R$80.2 million, a 38.1% decrease, impacted by delayed sowing and adverse weather.

• Gross margin for the period was 13.6%, reflecting stable profitability despite lower sales.

• The company expanded through the acquisition of DaSoja Sementes S.A., contributing R$64.0 million in revenue and R$4.4 million in net income since July 2024.

• Significant investments were made in expanding production capacity and distribution, including the creation of SBS Green Seed in November 2024.

• Order backlog reached R$699 million, positioning the company for opportunities in 4Q24 despite invoicing delays.

Financial highlights

• Net operating revenue for 3Q24 was R$727.4 million, down 26.3% from 3Q23; LTM revenue fell 10.5% year-over-year.

• Gross profit for 3Q24 was R$96.8 million, a 28.6% decrease; gross margin was 13.3%.

• Adjusted EBITDA for 3Q24 was R$74.1 million (margin 10.2%), down 45.5% from 3Q23; LTM adjusted EBITDA was R$194.2 million.

• Net profit for 3Q24 was R$54.0 million, a 53.3% decrease; adjusted net profit was R$35.0 million, down 65.4%.

• Cash and cash equivalents at quarter-end were R$167.3 million, with total cash and investments at R$495.9 million.

Outlook and guidance

• 2025 production capacity expected to reach 280,000 big bags, a 17% increase over 2024.

• Contracted 254,000 hectares for the 2025 harvest, up 12% from 2024.

• Order book stands at R$700 million, up 38% from 2024.

• Management highlights ongoing investments in production and logistics to support future growth.

• Recent acquisitions and new business lines are expected to diversify revenue streams and enhance operational scale.