Três Tentos Agroindustrial (TTEN3) Q2 2024 earnings summary

Executive summary

• Net revenue for Q2 2024 reached R$2.8 billion, up 58.9% year-over-year, with net income of R$145.6 million, an 89.3% increase, driven by strong Grains and Industry segments and record soybean origination.

• First half 2024 net revenue was R$5.476 billion, up 53.6% year-over-year, supported by geographical expansion and increased market share.

• Four new stores opened in Q2, including in the Araguaia Valley and along BR-163, with ongoing construction of a corn/ethanol plant in Mato Grosso.

• Operational guidance for 2024 was revised upward for soybean origination, meal, and biodiesel production.

• Growth cycle accelerated by new store openings and investments in industrial capacity.

Financial highlights

• Adjusted EBITDA for the quarter grew 90.2% to R$83.4 million, and 53% year-to-date to R$243 million.

• Adjusted net income for H1 2024 was R$183 million, up 20.4% year-over-year, with an adjusted net margin of 3.3%.

• Adjusted gross profit for 6M24 was R$829 million (+97.4% YoY); adjusted gross margin at 14.3%.

• Net debt at the end of Q2 2024 was R$511 million, down R$44.4 million from 2023, with net debt/EBITDA (LTM) at 0.55.

• Cash and cash equivalents increased to R$1.45 billion at June 2024.

Outlook and guidance

• Soybean origination projection for 2024 raised from 2.4 million to 2.85 million tons, with 2.1 million tons for processing.

• Biodiesel production guidance increased from 427,000 m³ to 490,000 m³; soybean meal from 1.425 million to 1.53 million tons.

• Margin recovery in Ag Inputs expected in H2 2024 as delayed purchases normalize.

• Store expansion ahead of 2030 plan, with addressable market now at 19 million hectares, mainly due to Araguaia Valley growth.

• Guidance for Mato Grosso soybean crushing in 2025 revised from 1.2 million to 1 million tons to ensure logistics readiness.