Terra Santa Propriedades Agrícolas (LAND3) Q4 2024 earnings summary

Executive summary

• Focused on rural real estate, the company reported a challenging 4Q24 and full-year 2024, with significant declines in revenue, profitability, and margins year-over-year, mainly due to lower soybean prices and non-recurring operational expenses.

Financial highlights

• 4Q24 net revenue was R$16.3 million, down 15.6% from 4Q23; full-year 2024 net revenue was R$68.3 million, down 25.5% from 2023.

• 4Q24 net loss of R$5.8 million versus net profit of R$13.6 million in 4Q23; 2024 net profit of R$7.3 million, down 79.2% from 2023.

• 4Q24 EBITDA was negative R$8.0 million (vs. positive R$14.5 million in 4Q23); 2024 EBITDA was R$23.8 million, down 62.4% year-over-year.

• Adjusted EBITDA for 2024 was R$39.6 million, down 41.9% from 2023.

• Gross margin remained high at 92.8% in 4Q24 and 93.0% in 2024, with slight declines from prior periods.

Outlook and guidance

• 100% of the 2024/25 soybean crop price was fixed at R$107.93/sc, reducing exposure to commodity price volatility.

• The company continues to focus on prudent cash management and maintaining low leverage to support its business plan.