Três Tentos Agroindustrial (TTEN3) Q4 2023 earnings summary

Executive summary

• FY23 net operating revenue rose 30.7% to R$8,999.0mn, led by Grains and Industry; adjusted EBITDA fell 22.4% to R$483.4mn, while net income increased 0.5% to R$573.8mn.

• 4Q23 revenue grew 40.5% YoY to R$3,029.6mn, while adjusted EBITDA declined 26.9% to R$215.5mn and net income fell 21.6% to R$175.6mn.

• Results faced drought impacts, lower agricultural-input and commodity prices, inventory adjustments and segment-specific margin pressure; a 2024–2030 growth cycle is planned.

Financial highlights

• FY23 adjusted gross profit increased 12.8% to R$1,230.1mn; adjusted gross margin declined 2.1 p.p. to 13.7%.

• FY23 reported EBITDA was R$499.3mn, down 13.2% YoY, with a 5.5% margin; adjusted EBITDA margin was 5.4%.

• 4Q23 SG&A rose 96.6% to R$298.3mn, or 9.8% of revenue, mainly due to logistics costs for higher grain and meal exports from Mato Grosso.

• 4Q23 net financial income was R$32.8mn, including a positive R$66.6mn mark-to-market effect on unsettled derivatives.

Outlook and guidance

• 2024–2030 growth cycle targets 100 stores and four industries by 2030, including a Vale do Araguaia, Mato Grosso ecosystem with corn processing, corn ethanol and DDG production.

• 2024 priorities include new stores, Ag Inputs margin recovery, efficiency gains in Mato Grosso, full-capacity plants and market-share gains.

• Positive outlook cited the 23/24 summer crop in Rio Grande do Sul, less volatile prices and the planned B14 biodiesel blend.