Três Tentos Agroindustrial (TTEN3) Q3 2024 earnings summary

Executive summary

• Achieved record net revenue and profit in 3Q24, with net operating revenue reaching R$3.5 billion, up 45.4% year-over-year, and strong growth across all segments, especially Grains and Industry.

• Adjusted EBITDA surged 194.0% to R$342.0 million in 3Q24, with margin improvement to 9.8%.

• Net income for 3Q24 was R$318.4 million, up 46.1% year-over-year, with a net margin of 9.1%.

• Expansion continued with new store openings and ongoing investment in industrial capacity, including a corn/sorghum ethanol plant in Porto Alegre do Norte/MT.

• Management highlights resilience amid challenging ag input market and confidence in Brazilian agribusiness.

Financial highlights

• 9M24 net operating revenue was R$9.0 billion, up 50.3% year-over-year; gross profit reached R$1.85 billion (+125.5%).

• Adjusted EBITDA for 9M24 was R$563.3 million (+110.2%), with a margin of 6.3%.

• Net income for 9M24 was R$620.5 million (+55.8% year-over-year); adjusted net income (excluding FVA) was R$377.4 million (+7.1%).

• Net debt at 3Q24 was R$149.0 million, with a leverage ratio of 0.13x EBITDA (LTM).

• Cash and cash equivalents at quarter-end were R$1.64 billion.

Outlook and guidance

• Projections for 2024 and 2025 were revised upward, with soybean origination for 2024 increased to 3.1 million tons, corn/sorghum to 430 thousand tons, and biodiesel production capacity to 3,000 m³/day.

• Biodiesel volume projection for 2024 increased from 490 to 560 thousand m³.

• Store count for 2024 adjusted to 70, with coverage area of 21.5 million ha.

• Robust order backlog in Ag Inputs expected to support volumes in 4Q24 and 1Q25.

• Continued investments in biofuels and store network expansion, especially in Araguaia Valley and Mato Grosso.