Earnings Release 4Q23 | 2023
Conference Call | |
September 06, 2023 | Portuguese |
(with simultaneous translation into English) | |
10 a.m (Brasília Time) | Click hereto participate |
09 a.m (NY Time) | |
4Q23 | 2023
EARNINGS RELEASE
----------------------------------------------------------------------------------------------------------------------------------------------------------------
São Paulo, September 5, 2023 - BrasilAgro (B3: AGRO3) (NYSE: LND) announces its consolidated results for the year and quarter ended June 30, 2023 ("4Q23" and "2023"). The consolidated information is prepared in accordance with the International Financial Reporting Standards (IFRS).
Period Highlights
----------------------------------------------------------------------------------------------------------
(R$ thousand) | 4Q23 | 4Q22 | Change | 2023 | 2022 | Change |
Revenues from Operations | 257.658 | 350.737 | -27% | 903.372 | 1.168.137 | -23% |
Revenues from Farm Sales | 415.855 | - | n.a. | 445.429 | 316.174 | 41% |
Net Sales Revenue | 673.513 | 350.737 | 92% | 1.348.801 | 1.484.311 | -9% |
Variation in the fair value of biological assets | (41.937) | 69.327 | n.a. | 30.530 | 498.942 | -94% |
Net Revenue¹ | 631.576 | 420.064 | 50% | 1.379.331 | 1.983.253 | -30% |
Adjusted EBITDA from Operations | 36.717 | 66.903 | -45% | 187.664 | 437.602 | -57% |
Adjusted EBITDA Margin from Operations (%) | 14% | 19% | -5 p.p. | 21% | 37% | -17 p.p. |
Adjusted EBITDA² | 365.283 | 66.903 | n.a. | 533.729 | 689.136 | -23% |
Adjusted EBITDA Margin (%) | 58% | 16% | 42 p.p. | 39% | 35% | 4 p.p. |
Net Income from Operations | (85.857) | 31.112 | n.a. | (77.529) | 268.566 | n.a. |
Net Operating Margin (%) | -33% | 9% | -42 p.p. | -9% | 23% | -32 p.p. |
Net Income | 242.708 | 31.112 | n.a. | 268.536 | 520.100 | -48% |
Net Income Margin (%) | 38% | 7% | 31 p.p. | 19% | 26% | -7 p.p. |
¹ Net Revenue: Considers the change in fair value of biological assets and agricultural product and Impairment. |
- Adjusted EBITDA was calculated by excluding biological assets in progress (sugarcane and grains planted) and adjusted for the harvest's derivative results and depreciation expenses, including depreciation of fixed assets of the farms, developed areas and permanent crops.
----------------------------------------------------------------------------------------------------------
Farm Sale | TOTAL | Morotí | Rio do Meio | Araucária - S1 | Araucária - S2 | Jatobá | |
Total Area (ha) | 12.753 | 863 | 1.965 | 332 | 5.185 | 4.408 | |
Arable Area (ha) | 9.134 | 498 | 1.423 | 215 | 3.796 | 3.202 | |
Nominal Sale Value¹ | R$610 MM | R$7,8 MM | 291 soybean | 297 soybean | 790 soybean | 298 soybean | |
bag/ha | bag/ha | bag/ha | bag/ha | ||||
Acquisition Value + | R$98 MM | R$4,4 MM | R$17,8 MM | R$1,9 MM | R$59,0 MM | R$15,1 MM | |
CAPEX | |||||||
Between 13,6% | |||||||
IRR - R$ | 42,2% | 52,4% | 13,6% | 14,5% | 16,0% | ||
e 52,4% | |||||||
Revenue From Farm Sale | R$445 MM | R$8 MM | R$35 MM | R$6 MM | R$307 MM | R$89 MM | |
¹ Considers values announced | on the date of the Material Fact. | ||||||
See the ""Sales of Farms"" section of this release for accounting details. |
----------------------------------------------------------------------------------------------------------
Quantity Sold | 2023 | 2022 | Chg. | Net Revenue | 2023 | 2022 | Chg. |
(Ton) | (%) | (R$ thousand) | (%) | ||||
Total | 1.967.162 | 2.364.141 | -17% | Total | 903.372 | 1.168.137 | -23% |
Soybean | 180.088 | 236.127 | -24% | Soybean | 419.218 | 600.075 | -30% |
Corn | 132.610 | 116.091 | 14% | Corn | 147.317 | 108.692 | 36% |
Beans | 3.114 | 3.953 | -21% | Beans | 12.483 | 11.083 | 13% |
Feather Cotton | 3.377 | 2.075 | 91% | Feather Cotton | 33.750 | 21.692 | 56% |
Seed Cotton | 3.541 | 2.502 | 18% | Seed Cotton | 4.446 | 3.550 | 25% |
Sugarcane | 1.640.394 | 1.997.307 | -18% | Sugarcane | 244.830 | 378.919 | -35% |
Cattle Raising | 2.994 | 3.228 | -7% | Cattle Raising | 24.807 | 31.507 | -21% |
Others | 1.045 | 2.857 | -63% | Leasing | 14.893 | 6.450 | n.a. |
Others | 1.629 | 6.167 | -74% |
2
4Q23 | 2023
Estimates for 2023/2024 Harvest Year
---------------------------------------------------------------------------------------------------------
Planted Area (ha) | 23/24 Harvest | 22/23 Harvest | Chg. |
estimat ed | realized | (%) | |
Soybean | 74.996 | 65.772 | 14% |
Corn | 8.911 | 8.216 | 8% |
Corn - 2nd Crop | 17.712 | 12.078 | 47% |
Beans | 4.692 | 1.799 | n.a. |
Beans - 2nd Crop | 1.889 | 1.658 | 14% |
Cotton | 3.584 | 5.104 | -30% |
Cotton - 2nd Crop | 3.490 | 2.038 | 71% |
Ratoon Cane | 22.856 | 25.093 | -9% |
Plant Cane | 2.902 | 2.492 | 16% |
Pasture | 15.374 | 16.080 | -4% |
Others | 29.284 | 28.443 | 3% |
Total | 185.691 | 168.774 | 10% |
Production per product (tons) | 23/24 Harvest | 22/23 Harvest | Chg. |
estimat ed | realized | (%) | |
Soybean | 248.471 | 204.606 | 21% |
Corn | 60.853 | 53.700 | 13% |
Corn - 2nd Crop | 102.566 | 69.628 | 47% |
Beans | 5.631 | 2.057 | n.a. |
Beans - 2nd Crop | 2.221 | 1.957 | 13% |
Cotton | 13.546 | 13.345 | 2% |
Cotton - 2nd Crop | 12.740 | 8.795 | 45% |
Total | 446.028 | 354.088 | 26% |
Sugarcane Harvest
Year Result
Toneladas colhidas Hectares colhidos TCH - Toneladas colhidas por
Cattle Raising
Hectares Number of heads Meat production (kg) Weight Gain per Day Weight Gain per hectare
2023 Harvest | 2022 Harvest | Var. |
Estimated | Realized | |
(%) | ||
(Apr/01 to Dec/31) | (Apr/01 to Dec/31) | |
2.121.691 | 1.941.421 | 9% |
25.178 | 24.857 | 1% |
84,27 | 78,10 | 8% |
23/24 Harvest | 22/23 Harvest | Chg. |
estimated | realized | (%) |
15.374 | 16.080 | -4% |
20.164 | 21.652 | -7% |
2.918.317 | 2.572.377 | 13% |
0,56 | 0,61 | -9% |
190 | 160 | 19% |
3
4Q23 | 2023
23/24 Breakdown Production Cost (%) | Soybean | Corn | Corn - | Beans | Cotton | Sugarcane | Cattle |
2nd Crop | Raising | ||||||
Variable costs | 79% | 78% | 89% | 88% | 92% | 64% | 50% |
Seeds | 15% | 18% | 22% | 1% | 14% | 0% | 0% |
Fertilizers | 25% | 31% | 31% | 13% | 25% | 10% | 0% |
Defensives | 16% | 13% | 9% | 30% | 27% | 6% | 0% |
Agricultural services | 20% | 14% | 22% | 25% | 23% | 40% | 0% |
Fuels and Lubricants | 2% | 3% | 4% | 5% | 0% | 9% | 0% |
Maintenance of machines and instruments | 0% | 0% | 0% | 0% | 0% | 0% | 8% |
Animal Feed | 0% | 0% | 0% | 0% | 0% | 0% | 35% |
Others | 1% | 0% | 1% | 14% | 3% | 0% | 7% |
Fixed costs | 21% | 22% | 11% | 12% | 8% | 36% | 50% |
Labor | 5% | 4% | 3% | 6% | 3% | 3% | 30% |
Depreciation and amortization | 3% | 2% | 2% | 3% | 3% | 11% | 13% |
IFRS 16 | 12% | 15% | 5% | 2% | 1% | 16% | 0% |
Others | 1% | 1% | 1% | 1% | 1% | 5% | 8% |
Production Cost (R$/ha) | 23/24 Harvest | 22/23 Harvest | Var. | ||||
estimated | realized | ||||||
Soybean | (1) | 4.956 | 5.753 | -14% | |||
Corn | (1) | 4.918 | 5.771 | -15% | |||
Corn 2nd Crop | 3.312 | 4.267 | -22% | ||||
Beans | 2.835 | 3.713 | -24% | ||||
Beans 2nd Crop | 1.943 | 2.706 | -28% | ||||
Cotton | 8.258 | 9.169 | -10% | ||||
Cotton 2nd Crop + Pivot | 10.399 | 14.154 | -27% | ||||
Sugargane | 10.113 | 10.065 | 0% | ||||
Others | (2) | 1.494 | 768 | 95% | |||
( 1) | includes area opening amortization | ||||||
( 2) | Other considers: Quinoa and SesameOutros considera: Quinoa e Gergelim | ||||||
Note that the estimates are hypothetical and do not constitute a guarantee of performance. To learn more about the operational estimates of the Company, refer to the section on projections in our Reference Form.
Operational Schedule
1Q | 2Q | 3Q | 4Q | 1Q | 2Q |
Jul Ago Set | Out Nov Dez | Jan Fev | Mar Abr Mai Jun | Jul Ago Set | Out Nov Dez |
Soybean | Planting | Crop | |||
Corn | Planting | Crop | |||
Corn 2nd Crop | Planting | Crop | |||
Beans | Planting | Crop | |||
Beans 2nd Crop | Planting | Crop | |||
Cotton | Planting | Crop | |||
Cotton 2nd Crop | Planting | Crop | |||
Sugarcane | Planting | Crop | |||
4
4Q23 | 2023
MESSAGE FROM MANAGEMENT
---------------------------------------------------------------------------------------------------------------------------------------------------------------
The 2022/2023 crop year was marked by a drop in commodity prices, a weaker Brazilian real and adverse weather events that affected the yelds of grains and cotton in some regions, not to mention high production costs, reflecting the increase in fertilizer, seed and fuel prices.
This combination of factors affected the results of agricultural operations, which delivered healthy margins that came in line with historical margins, but significantly lower than margins in the previous crop year when we posted record operating results.
On the other hand, our real estate activities delivered strong results, thanks to the sale of 9,134 arable hectares for a total nominal value of R$610 million, and a gain of R$346.1 million, which positively impacted the Company's consolidated results.
These results increasingly underscore the importance of our business model, which combines real estate and operational returns, and our strategy of diversifying our portfolio across regions and crops.
We ended the 2022/2023 crop year with Net Income of R$268.5 million and Adjusted EBITDA of R$533.7 million, reflecting Net Revenue of R$1.3 billion, which includes R$445.4 million from the sale of farms and R$903.4 million from the sale of agricultural products.
Management proposes dividend payment of R$320.0 million (R$3.24 per share), which will be submitted for approval at the Shareholders Meeting to be held on October 24, 2023.
Despite the challenges, we demonstrated our capacity to create value based on clear strategies executed in a disciplined manner.
However, our value creation goes beyond our financial results. We have been developing and implementing diverse sustainability initiatives that contribute to the transformation of both society and the environment.
Apart from the impact caused by the BrasilAgro Institute on the lives of thousands of people, we seek to create positive impacts and a sustainable agricultural chain. All our initiatives are detailed in our sustainability report and on the BrasilAgro Institute website.
The next crop year will bring several challenges on the commercial front, with volatile commodity prices and logistics costs, and weather adversities, with the onset of El Niño. Even in such a scenario, we believe in our capacity to create value and deliver results consistently by focusing on production margins and real estate transactions.
5
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
BrasilAgro - Companhia Brasileira de Propriedades Agrícolas published this content on 06 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 September 2023 00:31:09 UTC.