Q4 2024 SLC Agricola SA Earnings Call Transcript
Key Points
- SLC Agricola SA (SLCJY) achieved a net revenue of nearly BRL7 billion, driven by significant cotton shipments.
- The company maintained a strong adjusted EBITDA margin of 29.4% and generated free cash flow of BRL34 million.
- SLC Agricola SA (SLCJY) successfully expanded its planted area by 10.6%, totaling 731,000 hectares, indicating growth potential.
- The company received multiple ESG awards, including the Great Place to Work certification and the Gold Seal from the Brazilian GHG Protocol Program.
- SLC Agricola SA (SLCJY) announced a strategic acquisition of Sierentz Agro Brasil, which will increase its planted area by 14% and enhance land portfolio diversification.
- Net revenue declined by 4% compared to 2023 due to lower-than-expected soybean and corn yields.
- Operational performance was impacted by adverse weather conditions, leading to lower yields in cotton, soybean, and corn.
- The company's leverage increased, with adjusted net debt closing at BRL3.7 billion, primarily due to lower soybean productivity and increased planted area.
- Cotton prices are under pressure due to global demand fluctuations and geopolitical uncertainties, affecting profitability.
- The company faces challenges in expanding the cotton seed market, with slower growth expectations compared to other segments.
Good morning, everyone, and welcome to SLC Agricola's Q4 2024 earnings conference call. My name is Rodrigo Gelain. I am the Financial Manager and Investor Relations Officer. Joining me today are our CEO, Aurelio Pavinato; and our CFO and IRO, Ivo Brum. It is a pleasure to be with you this morning.
Please note that this conference is being recorded and will be available on our investor relations website, where you can also find the presentation. (Event Instructions)
We would like to remind you that the information shared in this presentation, as well as any statements made during this call regarding business outlook, projections, and operational and financial goals, are based on management's beliefs and assumptions as well as currently available information. Forward-looking statements are not guarantees of future performance, as they involve risks and uncertainties. They refer to future events. So investors should consider economic conditions, market factors, and other operational variables that may affect SLC
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