Terra Santa Propriedades Agrícolas (LAND3) Q1 2025 earnings summary

Executive summary

• Net income reached R$9.7 million in 1Q25, up 51.1% year-over-year, driven by higher lease revenues and positive hedge accounting results.

• Net revenue grew 34.6% year-over-year to R$22.0 million, mainly from land lease contracts and positive hedge accounting results.

• EBITDA rose 23.7% to R$16.3 million, with adjusted EBITDA up 46% to R$15.4 million, reflecting operational improvements and non-recurring items.

• Operational expenses rose 88.8% year-over-year, driven by changes in other operational revenues.

• Lease contract renegotiation increased soybean payment to 20.5 sacks per hectare for 2024/25–2026/27, enhancing future revenue streams.

Financial highlights

• Consolidated net revenue: R$21.96 million in 1Q25 vs. R$16.32 million in 1Q24.

• Gross profit increased 37.9% to R$20.8 million, with gross margin improving by 2.3 p.p. to 94.9%.

• Consolidated net income: R$9.7 million in 1Q25 vs. R$6.4 million in 1Q24.

• Cost of goods sold: R$1.1 million, down from R$1.2 million year-over-year.

• Financial result was a net expense of R$3.8 million, 45.6% higher year-over-year, due to higher financial expenses and lower financial income.

Outlook and guidance

• Lease contract renegotiation increases soybean reference to 20.5 sacks/ha for 2024/25, 2025/26, and 2026/27, boosting future revenue potential.

• 100% of soybean price for 2024/25 crop fixed at R$107.93/sc, providing revenue predictability.

• Company continues to monitor global commodity and FX volatility, using hedging to stabilize cash flows.

• New lease terms with SLC Agrícola will positively impact results for the next three crop years.