Q2 2024 SLC Agricola SA Earnings Call Transcript
Key Points
- Brazil became the world's leading cotton exporter in the '22, '23 season, surpassing the United States.
- SLC Agricola SA (SLCJY) achieved a 73% increase in current revenue despite a decrease in net revenue.
- The company has hedged a significant portion of its production: 92% of soybeans, 69% of corn, and 59% of cotton for the '23, '24 season.
- SLC Agricola SA (SLCJY) successfully raised over BRL1 billion through the issuance of CRA to extend its debt profile.
- The company expanded its joint venture with Agro Penido, adding 1,700 hectares with a planting potential of 30,734 hectares.
- Net revenue for the first quarter decreased due to lower prices and reduced soybean sales volume.
- Cash flow for the quarter was negative BRL543 million, mainly due to reduced soybean production payments and machinery payments.
- Adjusted net debt ended the quarter at BRL4.2 billion with a net debt over adjusted EBITDA ratio of 1.99 times.
- Soybean margins were pressured due to lower productivity in Mato Grosso, resulting in a gross profit of only BRL52 per ton for the quarter.
- The '23, '24 season was characterized by irregular rainfall distribution and heat waves, affecting crop development and yields.
Good morning, everyone. Welcome to SLC Agricola's second-quarter 2024 earnings conference call. My name is Rodrigo Gelain, I am the Financial and Investor Relations Manager. Joining me this morning, we have our CEO, Aurelio Pavinato; and our CFO and IRO, Ivo Brum.
It's a privilege to be with you this morning. Please note that this video conference is being recorded and will be available on the company's IR website, together with the presentation. (Event Instructions)
Please note that the information provided in this presentation and any forward-looking statements made during the video conference regarding SLC Agricola's business prospects, projections, and operating and financial targets are based on the company's current beliefs and assumptions as well as information available at this time.
Forward-looking statements are not guarantees of performance. They involve risks, uncertainties, and assumptions as they pertain to future events, and therefore, depend on circumstances that may or may not occur.
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