Financial Data and Key Metrics Changes - In Q1 2026, the company reported net revenue of BRL 286.6 million, an adjusted EBITDA of BRL 64 million, and a net loss of BRL 64.3 million, indicating a challenging quarter due to the end of the sugarcane harvest and the planting of new crops [2][22][23] - The operational EBITDA was BRL 64 million, similar to BRL 61.4 million in the same period last year, reflecting stable operational performance despite market volatility [23][24] Business Line Data and Key Metrics Changes - The sugarcane segment faced challenges with productivity, leading to a decrease in ATR levels from historical averages of 140 kg to around 135-136 kg, impacting overall revenue [22][24] - Soy sales were strong, with 56% of the current harvest sold at BRL 1,072, benefiting from strategic timing in the market [19][20] - Corn prices showed recovery, and the company has a significant volume of corn yet to be sold, indicating potential for future revenue [20][29] Market Data and Key Metrics Changes - The sugar market has been under pressure due to global production expectations, leading to lower prices [4][22] - The cotton market experienced a 14% price drop, while cattle raising showed signs of recovery due to export restrictions [4][11] - The company anticipates a good soy harvest in Brazil, with estimates ranging from 178 to 180 million tons [5][11] Company Strategy and Development Direction - The company is focusing on diversifying its operations across various commodities to mitigate risks associated with market volatility [10][12] - There is an emphasis on cost management and strategic timing in sales to optimize margins, particularly in the soy and corn segments [3][19] - The management is exploring opportunities in biofuels and crushing projects, indicating a long-term strategic shift towards sustainable practices [40][42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the volatility in the agricultural market, particularly influenced by geopolitical factors affecting trade agreements [18][41] - There is optimism regarding the recovery of sugarcane productivity due to improved weather conditions and irrigation strategies [50][51] - The company remains committed to being a dividend-paying entity, reflecting confidence in its long-term financial health despite current challenges [34][35] Other Important Information - The company has a significant amount of receivables, over BRL 650 million, which will positively impact its balance sheet in the coming quarters [20][32] - The company is actively managing its debt levels, with a net debt of BRL 658 million and a focus on maintaining liquidity [32][34] Q&A Session Summary Question: What is the expected sugarcane harvest scenario? - Management expects about 10% more tons harvested by the end of the harvest year, but acknowledges that market estimates may be overly optimistic [36][37] Question: Can you provide an update on land purchase and sale scenarios? - The company is actively pursuing land sales and sees ongoing opportunities in regions like Bahia, despite challenges posed by interest rates [38][39] Question: What is the perspective on soy imports and market competitiveness? - The company anticipates favorable conditions for soy imports from China, which could enhance competitiveness in the market [40][41] Question: How does the company view the potential for biofuels and M&A? - Management sees biofuels as a long-term opportunity and is exploring M&A possibilities to enhance operational efficiency [40][42] Question: What are the expectations for sugarcane TCH recovery? - Management is optimistic about TCH recovery due to improved weather conditions and irrigation strategies, expecting significant improvements in the next harvest [47][50]