The following is a summary of the BrasilAgro - Companhia Brasileira De Propriedades Agrícolas (LND) Q2 2024 Earnings Call Transcript:
Financial Performance:
BrasilAgro reported BRL424 million in revenue with a net income of BRL24 million in the first half of their fiscal year.
Despite a 12% decrease in net revenue, mostly due to lower prices for soybean, corn, and meat, the net profit remained similar to the previous year at BRL24 million, largely due to positive price evaluation of receivables from the sale of farms and results from derivatives.
The adjusted EBITDA for the semester was BRL8 million, a significant decrease from BRL124 million the previous year.
The company bears a debt of BRL743 million, with a net debt of BRL416 million after accounting for significant receivables from farm sales.
Business Progress:
Despite encountering production challenges, the company managed to deliver 2 million tons of sugarcane and showed resilience in maintaining crop diversity.
The company announced expansion plans in sugarcane production and ongoing land acquisition at lower commodity prices.
The company reported its strategic approach to improve operational results and real estate results through diversified cropping and leasing options.
A significant growth focus lies in the beans market, as bean crops are expected to contribute significantly to company growth in future years.
The company reported international expansion into Paraguay and Bolivia and has witnessed noticeable growth in land and cotton farming over the last decade in these regions.
BrasilAgro continues to invest in technology and infrastructure, including the integration of SAP with Agrobit software, new storage and processing facilities, connectivity projects, and setup of new bio plants for improved crop activity.
More details: BrasilAgro IR
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