Terra Santa Propriedades Agrícolas (LAND3) Q3 2024 earnings summary

Executive summary

• Net revenue in 3Q24 was BRL 17.9 million, down 20.6% year-over-year, mainly due to lower lease prices for soybeans and a decrease in lease revenue compared to 3Q23.

• Net profit for 3Q24 reached BRL 7.4 million, a 7.7% decrease from 3Q23, impacted by lower operational results and higher operating expenses, partially offset by improved financial results.

• EBITDA for 3Q24 was BRL 12.2 million, down 30.2% year-over-year, with EBITDA margin dropping 9.4 p.p. to 68.0%.

• Net debt decreased to BRL 82.0 million by September 2024, representing 2.7% of total assets.

Financial highlights

• 3Q24 net revenue: BRL 17.9 million (-20.6% vs. 3Q23); 9M24 net revenue: BRL 52.1 million (-28.1% vs. 9M23).

• 3Q24 gross profit: BRL 16.8 million (-20.8% vs. 3Q23); 9M24 gross profit: BRL 48.5 million (-29.3% vs. 9M23).

• 3Q24 net profit: BRL 7.4 million (-7.7% vs. 3Q23); 9M24 net profit: BRL 13.1 million (-39.4% vs. 9M23).

• 3Q24 EBITDA: BRL 12.2 million (-30.2% vs. 3Q23); 9M24 EBITDA: BRL 31.9 million (-34.8% vs. 9M23).

• Net debt/Adjusted EBITDA increased from 1.58x (Dec 2023) to 1.87x (Sep 2024).

Outlook and guidance

• For the 2024/25 harvest, the company is monitoring market conditions for soybean price fixation and has hedged 100% of expected revenue against exchange rate fluctuations and 50% against future soybean price changes.