SLC Agrícola (SLCE3) Q1 2025 earnings summary

Executive summary

• Q1 2025 net revenue rose 19.1% year-over-year to R$2.3 billion, driven by a 10% increase in planted area, record soybean yields, and significant growth investments including land acquisitions in Bahia and Minas Gerais.

• Net income surged 123.1% to R$510.7 million, reflecting operational efficiency, favorable market conditions, and higher yields.

• Adjusted EBITDA reached R$943.7 million (margin 40.5%), with gross margin improving to 46.2% and operational margin to 37.2%.

• The company continues to pursue an asset-light growth strategy, increasing leased area to 62% for 2025/26.

• Capex reached R$1.03 billion, mainly for land (81%), with additional investments in machinery and equipment.

Financial highlights

• Net revenue: R$2,331 million (+19.1% YoY); gross income: R$1,076 million (+66.5% YoY).

• Adjusted EBITDA: R$943.7 million (+34% YoY), margin 40.5% (+4.5 p.p.); net income: R$510.7 million (+123.1% YoY).

• Adjusted free cash flow improved from -R$1,419 million to -R$195.7 million, mainly due to land and stake acquisitions.

• Net debt: R$5.2 billion, Net Debt/EBITDA at 2.27x (up from 1.80x at 2024 year-end).

• Dividend payout of R$241 million approved, representing a 3.1% yield based on 2024 results.

Outlook and guidance

• Planted area for 2025/26 expected to grow 13.6–13.7% over 2024/25, supported by new acquisitions.

• Significant progress in input purchases: 82% potassium chloride, 69% phosphate, 57% crop protection inputs secured.

• Hedging advanced for 2025/26: 44.8% soybeans, 7% cotton locked, with lower hedge coverage than previous year.

• Cost per hectare expected to remain stable or decrease, with ongoing efforts to avoid input cost increases.