Três Tentos Agroindustrial (TTEN3) Q4 2024 earnings summary

Executive summary

• Net operating revenue reached R$12.83 billion in 2024, up 42.5% year-over-year, with robust growth across Ag Inputs, Grains, and Industry segments.

• Adjusted EBITDA rose 101.4% to R$974 million, with margin improvement in all segments.

• Net income for 2024 was R$756.4 million, up 31.8% year-over-year, despite a 22.6% drop in 4Q24 due to negative financial results.

• Expansion in Mato Grosso now accounts for 35% of total net revenue, strengthening market presence and mitigating climate risks.

• Seven new stores opened in 2024, with 70 stores and 196 consultants serving producers in RS and MT.

Financial highlights

• Adjusted EBITDA was R$973.6 million, up 101.4% year-over-year; EBITDA margin rose to 7.6%.

• Net income reached R$756.4 million, a 31.8% increase from 2023; net margin was 5.9%.

• Adjusted gross profit grew 76% to R$2.16 billion; adjusted gross margin improved by 3.2 p.p. to 16.9%.

• Net debt at year-end was R$224.7 million, compared to net cash of R$42.9 million in 2023, mainly due to investments in new plants and store openings.

• Proposed dividends for 2024 total R$94.95 million (R$0.1906/share), payable March 14, 2025.

Outlook and guidance

• Positive outlook for 2025 with a record harvest expected in Brazil and continued expansion in key markets.

• Ongoing investments in new industrial capacity and store network to support growth.

• Continued promotion of canola in Rio Grande do Sul and execution of industrial expansions.

• Guidance remains cautious due to agribusiness uncertainties, but growth is expected to continue.