BrasilAgro(LND) - 2025 Q4 - Annual Report

Financial Performance - Revenues from Operations for 4Q25 were R$ 228.735 million, a decrease of 1% compared to R$ 230.364 million in 4Q24, while total revenues for 2025 increased by 14% to R$ 877.443 million from R$ 771.126 million in 2024[4] - Net Income for 4Q25 was R$ 61.281 million, down 74% from R$ 232.851 million in 4Q24, with a net income margin of 17%, a decrease of 25 percentage points year-over-year[4] - Adjusted EBITDA from Operations for 4Q25 was R$ (111) thousand, compared to R$ 19.748 million in 4Q24, reflecting a significant decline in operational profitability[4] - The company reported a net revenue of R$1.2 billion for the 2024/25 crop year, a 5% increase from the previous year, with net income of R$138.0 million and adjusted EBITDA of R$267.3 million[16] - In 4Q25, net income decreased by 74% to R$61.3 million compared to R$232.9 million in 4Q24[62] - The company reported a profit of R$ 61,281 thousand for Q4 2025, down 74% from the previous year, and a total profit of R$ 138,019 thousand for 2025, a 39% decrease[137] Revenue Sources - The quantity of sugarcane sold increased by 5% to 1,840,588 tons in 2025, contributing to a 36% rise in net revenue from sugarcane to R$ 322.189 million[5] - The company reported a 61% decrease in revenues from farm sales in 4Q25, totaling R$ 111.998 million compared to R$ 289.360 million in 4Q24[4] - The net revenue for 2025 was R$ 1.233 billion, a 12% increase from R$ 1.105 billion in 2024, driven by improved overall sales performance[4] - Revenues from sugarcane increased by 36% year-over-year in 2025, reaching R$ 325,265 thousand, while revenues from grains rose by 5% to R$ 442,530 thousand[137] Production and Yield - The total quantity sold across all products in 2025 was 2,138,470 tons, a 3% increase from 2,083,091 tons in 2024[5] - The total planted area for the 2025/26 harvest is estimated at 172.610 thousand hectares, with soybean production projected to increase by 17% to 252.022 thousand tons and corn production expected to rise by 43% to 64.872 thousand tons[10] - The company faced a 9% reduction in grain and cotton production due to adverse weather conditions and management complexities, but diversification strategies helped mitigate some impacts[19] - Soybean production decreased by 15% to 214,742 tons, while corn production increased by 8% to 45,431 tons[43] - The overall production of grains and cotton increased by 22% compared to the previous crop year, adding 65,300 metric tons[44] Operational Costs and Margins - The company’s net operating margin for 2025 was -5%, a decline of 2 percentage points from -3% in 2024, highlighting ongoing operational challenges[4] - Adjusted EBITDA margin from operations fell to 0% in 4Q25, down 9 percentage points from 9% in 4Q24, indicating a challenging operational environment[4] - The total cost of goods sold for 2025 increased by 12% compared to 2024, mainly due to a 16% rise in the volume of soybeans traded[77] - Soybean gross margin improved to 16% in Q4 2025, up 8 percentage points from Q4 2024, despite a 19% decrease in net revenue due to an 11% reduction in unit costs[78] - Corn's gross margin fell to 25% in Q4 2025, a decrease of 5 percentage points from Q4 2024, despite a 69% increase in invoiced volume and a 59% rise in unit price[82] Assets and Liabilities - The average debt balance rose from R$662.1 million to R$790.2 million, reflecting the company's strategy to carry soybean inventory into the second half of the year[102] - Total liabilities increased by 16% to R$ 1,659,274 thousand as of June 30, 2025, compared to R$ 1,425,402 thousand in the previous year[141] - Current liabilities rose by 25% to R$ 658,255 thousand, driven by a significant increase in loans, financing, and debentures, which grew by 100% to R$ 355,841 thousand[141] - The company’s total biological assets showed a significant decline of 92% in 2025, amounting to R$1.2 million compared to R$22.4 million in 2024[93] Cash Flow and Dividends - Total dividends proposed for 2025 amount to R$75.000 thousand, down from R$155.000 thousand in 2024, reflecting a reduction in dividends per share from R$1.56 to R$0.75[110] - Cash and cash equivalents decreased by 24% to R$159.816 thousand from R$209.614 thousand in the previous year[111] - Net cash generated from operating activities decreased by 10% to R$ 71,535 thousand compared to R$ 79,422 thousand in the previous year[143] - Cash flow from investment activities showed a net outflow of R$ 38,911 thousand, a 40% increase in cash used compared to R$ 27,846 thousand in 2024[143] Strategic Initiatives - The company has made significant progress in input acquisitions for the 2025/26 harvest, with potassium chloride purchases at 81% and phosphates at 89% as of August 2025[8] - The company entered a long-term lease for 3,000 arable hectares in Mato Grosso, enhancing operational capacity and flexibility[30] - The company continues to focus on acquiring and developing rural properties for agricultural and cattle raising activities, aiming to enhance value through infrastructure and technology investments[117]