BrasilAgro Companhia Brasileira de Propriedades Agrícolas (AGRO3) Q1 2025 earnings summary

Executive summary

• Net income reached R$97.5 million with a 21% margin, supported by strong operational and real estate activities, including the completion of the Alto Taquari farm sale (second stage).

• Net revenue totaled R$454.6 million, up 67% year-over-year, with adjusted EBITDA of R$169.4 million (37% margin), driven by agricultural product and land sales.

• 1.6 million tons of sugarcane harvested and 40% of soybean area planted, with favorable weather and normalization in the grains market.

• Sales from Alto Taquari farm contributed R$189.4 million, with a combined IRR of 18.6%.

• R$155 million in dividends approved, yielding 6%, reaffirming commitment to shareholder returns.

Financial highlights

• Net sales revenue increased 67% year-over-year to R$454.6 million; adjusted EBITDA margin from operations rose to 37%.

• Gross margins for soy and sugarcane returned to historical levels, with soy margins benefiting from strategic stock carryover and improved pricing.

• Net income margin improved to 21% from 11% in 1Q24.

• Revenues from farm sales up 73% year-over-year.

• Gross income from soybeans and sugarcane showed strong margins, while corn and beans posted negative margins.

Outlook and guidance

• Planted area for 24/25 is estimated at 178,909 hectares, up 4% from the previous year, with diversified crop mix and a projected 4% increase in total grain and cotton production.

• Soybean production is estimated to rise 26% to 251,788 tons; second-crop corn production projected to grow 43% to 77,583 tons.

• Sugarcane harvest expected to reach 2.0 million tons by December, in line with estimates.

• Production costs for soybean and corn are projected to decrease by 10% and 26%, respectively, for the 24/25 crop year.

• Rainfall expected to remain within historical averages as La Niña weakens, supporting crop development.