Boa Safra Sementes (SOJA3) Q4 2024 earnings summary

Executive summary

• 2024 was marked by severe weather and credit restrictions, leading to lower production, revenue, and profit, but strategic advances, acquisitions (DaSoja, Avra), and portfolio diversification supported sustainable growth and reduced dependence on large distributors.

• Expansion included new distribution centers, premium brand launches, and strategic partnerships, reinforcing market presence and operational efficiency.

• The company increased its client base, completed a follow-on share offering, and received an unqualified audit opinion confirming fair financial presentation.

Financial highlights

• Net revenue for 2024 was R$1.84 billion, down 11.4% year-over-year, with 4Q24 revenue at R$957 million (+13.8% YoY).

• Adjusted EBITDA for the year was R$183–184 million, down 35.5%, and adjusted net profit was R$93 million, down 62% YoY.

• Gross margin for 2024 was 12.2%, down from 14.9% in 2023; EBITDA margin decreased to 9.5–10%.

• Net income for 2024 was R$160.5 million, down from R$344.9 million in 2023.

• Cash and equivalents at year-end were R$238.5–239 million, down 49% YoY.

Outlook and guidance

• Production capacity is set to increase to 280,000 big bags in 2025, with a 20–30% rise and a 40% potential increase in sales volume.

• Management anticipates a return to historical average pricing, strong order backlog, and growth in regenerative agriculture and new crops.

• R$500 million was raised via CRA issuance to support future growth.