Terra Santa Propriedades Agrícolas (LAND3) Q3 2024 earnings summary

Executive summary

• Net revenue for Q3 2024 was R$17.9 million, down 20.6% year-over-year, mainly due to lower lease prices for soybeans and decreased lease revenue.

• Q3 net income reached R$7.4 million, a 7.7% decrease from Q3 2023, with consolidated net income of R$13.1 million for the nine months ended September 2024.

• EBITDA for Q3 2024 was R$12.2 million, down 30.2% year-over-year, with an EBITDA margin of 68.0%.

• Net debt at the end of September 2024 was R$82.0 million, representing 2.7% of total assets.

• The company completed the sale of Fazenda C-Vale (90 hectares) for R$8.5 million in August 2024.

Financial highlights

• Consolidated revenue for the nine months was R$52.1 million, a 28% decrease from R$72.5 million in the same period last year.

• 3Q24 gross profit was R$16.8 million, with a nine-month total of R$48.5 million.

• 3Q24 EBITDA was R$12.2 million, with a nine-month total of R$31.9 million.

• Net financial result was negative R$10.1 million for the nine months, mainly due to interest and currency effects.

• Cash and equivalents increased to R$10.2 million at quarter-end, up from R$2.1 million at year-end 2023.

Outlook and guidance

• Lease revenues for the next crop year will depend on the final fixation of soybean prices, with current estimates based on R$107.14/sc for the 2024/25 crop.

• The company has hedged 100% of expected revenue against exchange rate fluctuations and 50% against future soybean price changes for the 2024/25 harvest.

• Management expects no significant impact on future lease revenue from the sale of Fazenda C-Vale.