BrasilAgro(LND)2024-09-04 19:09Financial Data and Key Metrics Changes - The company reported a net revenue of R227 million for the year, with an adjusted EBITDA of R155 million, reflecting the company's ability to generate returns [3][26] Business Line Data and Key Metrics Changes - The company produced over 2.3 million tons of agricultural products, with significant progress in irrigation strategies [4][10] - The sale of Chaparral Farm, which was a significant asset, demonstrated the company's resilience in the real estate market [4][6] Market Data and Key Metrics Changes - Commodity prices showed a decline, with soybean prices dropping from R130, while corn prices also decreased [9][20] - The price of ethanol increased, positively impacting the company's results for the upcoming year [9] Company Strategy and Development Direction - The company emphasizes a combined strategy of real estate and operational results, which has proven successful [2][14] - There is a focus on diversifying crop production and improving operational efficiency through irrigation and technology [5][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in the agro business due to climate conditions but expressed optimism for a more stable climate in the upcoming year [10][31] - The company is prepared for a challenging market environment ahead, with strategies in place to navigate potential difficulties [45] Other Important Information - The company has a strong balance sheet with low leverage and significant receivables from farm sales, indicating financial stability [25][26] - The company plans to continue paying dividends despite the challenging year, reflecting confidence in its financial health [26][27] Q&A Session Summary Question: What productivity growth is expected for soybean and corn? - Management indicated that productivity gains are anticipated due to normalization in climate and land development, with expectations of reaching historical levels [29][31] Question: How much of the cost drop is attributed to seeds, fertilizers, and herbicides? - A drop of 15% to 16% in agrochemical prices and 8% to 10% in seed prices was noted, with some reductions in fertilizer costs as well [30] Question: What is the company's hedge position for soybean and corn? - The company is monitoring market conditions closely and is optimistic about capturing better prices through hedging strategies [37][39] Question: What are the perspectives for purchasing more farms? - Management expressed interest in acquiring more farms but indicated that prices need to drop further before making significant purchases [42][43]