SLC Agrícola S A : Company’s net income in first quarter reaches R$228.9 million

Company's net income in first quarter reaches R$228.9 million

On May 8, the company disclosed to the financial markets and on May 9, through a conference call, the financial results of the first quarter. The company's net income in the period was R$228.9 million.

Net Revenue ended 1Q24 at approximately R$2 billion, down 11.8% from 1Q23. Adjusted EBITDA was R$704 million, with EBITDA margin of 36%. One of the factors that affected the results in the period was gross income from soybean, affected by the reduction in planted area, yield and prices.
One of the period highlights was the expansion of the company's joint venture with Agro Penido (Pioneira Farm), which added 18,700 physical hectares with planting potential (considering 2nd crop) of 30,734 hectares. With the expansion of the joint venture, the term of both areas together will be extended to the 2043/2044 crop year. With the addition of these 30.7 thousand hectares, the potential planted area of the farm will be 64,286 hectares. During the period, the company concluded the purchase of a large portion of fertilizers for the 2024/2025 crop year, whose planting will start in September 2024.
"Adverse weather conditions around the country brought a series of challenges in crop production, especially soybeans, which was affected by the drought in the state of Mato Grosso. On the other hand, cotton performed remarkably well in the quarter, with an increase of 51.7% in volume invoiced and 15.4% in the unit price. We also ended the period with advance purchase of inputs for the 2024/2025 crop year, which underscores our commitment to maintaining sustainable margins through integrated planning and seizing the opportunities offered by the market", said Aurélio Pavinato, the CEO.
Performance of commodities

The first quarter of the year was marked by the end of sowing of second-crop corn and cotton crops and the end of soybean harvest. As regards the end of planting, these crops have already shown a healthy cultivation potential.
Gross Income from cotton lint was 106.2% higher than in 1Q23, thanks to the increase in unit price and the decrease in unit cost. Unit cost decreased due to the record yield in the 2022/23 crop year. Gross income from cottonseed decreased 75.1% in the period, mainly affected by the decrease in prices invoiced.
Soybean too was affected, with lower unit gross income that was 59.3% lower than in the same quarter last year, explained by lower unit prices invoiced combined with higher unit cost. Unit gross income from corn decreased 59.2%, which was partially offset by the decrease in unit cost due to better yield obtained in the 2022/2023 crop year compared to the previous crop year.
ESG Agenda

As part of its commitment to transparency, the Company intends to disclose its Integrated report next week. The report brings the results, challenges and main achievements in 2023, which underline SLC Agrícola's trajectory of growth and development.