SLC Agrícola (SLCE3) Q1 2025 earnings summary

Executive summary

• Net revenue rose 19.1% year-over-year in Q1 2025 to R$2.33 billion, driven by a 10% increase in planted area and record soybean yields.

• Net income surged 123.1% to R$510.7 million, reflecting operational efficiency and favorable market conditions.

• Adjusted EBITDA reached R$943.7 million (margin 40.5%), with gross margin improving to 46.2%.

• Adjusted free cash flow improved significantly, from -R$1,419 million to -R$195.7 million.

• The company continues to pursue an asset-light growth strategy, increasing leased area for 2025/26.

Financial highlights

• Net revenue: R$2.33 billion (+19.1% YoY); gross income: R$1.08 billion (+66.5% YoY).

• Adjusted EBITDA: R$943.7 million; margin 40.5%.

• Net income: R$510.7 million (+123.1% YoY); net margin: 21.9% (up from 11.7%).

• Adjusted net debt: R$5.17 billion, with net debt/EBITDA at 2.27x (up from 1.80x in 4Q24).

• Total indebtedness increased to R$6.35 billion, with higher average interest rates on new credit lines.

Outlook and guidance

• For 2025/26, 82% of potassium chloride, 69% of phosphate, and 57% of crop protection inputs have been purchased.

• Asset-light growth strategy targets a 13.6% increase in total area, with leased area rising to 62%.

• Hedge positions for 2025/26 are lower than 2024/25, with 20.1% FX hedge for soybeans and 16.8% for cotton.

• Cost per hectare expected to remain stable or decrease, with ongoing efforts to avoid input cost increases.