Boa Safra Sementes (SOJA3) Q1 2025 earnings summary

Executive summary

• Net revenue reached R$131.2 million in Q1 2025, a 90% year-over-year increase, driven by diversification and strong seed sales, especially in new regions.

• Net income in Q1 2025 was R$16.9 million, up 108% year-over-year, reversing a loss from Q1 2024 and reflecting improved operational performance.

• Adjusted net income turned positive at R$0.7 million, compared to a R$5.8 million loss in Q1 2024, highlighting the impact of diversification and operational changes.

• Production capacity expanded to 280,000 big bags, supported by new processing units in Paraná and a focus on seed quality and diversification.

• SBS Green Seeds joint venture launched, targeting regenerative agriculture and soil health, with a 30% stake and potential to increase to 60%.

Financial highlights

• Gross margin improved from -11% to 9% year-over-year, reflecting a shift toward higher-margin seeds and operational recovery.

• Adjusted EBITDA for Q1 2025 was negative R$28.6 million, a slight improvement year-over-year; LTM adjusted EBITDA was R$183.9 million, down 31.9%.

• Operational cash flow improved to R$17 million in Q1 2025 from a negative R$143 million in Q1 2024, despite increased working capital needs.

• Client advances more than doubled to R$44 million, indicating strong demand and a solid order backlog.

• Finished product soybean seed stock rose to R$138 million in 2025 from R$130 million in 2024.

Outlook and guidance

• Management expects continued growth in 2025, supported by expanded production capacity, portfolio diversification, and a robust order backlog.

• The order backlog for soybeans reached R$1.4 billion, 40% higher year-over-year, indicating strong demand.

• The company is optimistic about further market share gains, especially in the South, and anticipates a positive year with improved financial health.

• Management notes that future performance is subject to risks and uncertainties, with no obligation to update forward-looking statements.