Três Tentos Agroindustrial (TTEN3) Q3 2024 earnings summary

Executive summary

• Achieved record net revenue and profit in 3Q24, with strong growth across all business segments, especially Grains and Industry, and continued expansion in biofuels and ethanol.

• Integrated ecosystem of inputs, grains, and industry pillars drove operational efficiency and value creation.

• Expansion projects, including new biodiesel and corn-based ethanol plants, are progressing on schedule, with major investments in Porto Alegre do Norte.

• Management remains confident in Brazilian agribusiness resilience despite challenging ag input markets.

• Operational guidance for 2024 and 2025 was revised upward, with a focus on margin consolidation and leveraging biodiesel contributions.

Financial highlights

• Net revenue reached R$3.5 billion in 3Q24, up 45.4% year-over-year; 9M24 net revenue was R$9.0 billion, up 50.3%.

• Adjusted gross profit for 9M24 was R$1.4 billion, a 95.8% increase; 3Q24 adjusted gross profit was R$607.2 million (+93.7%).

• Net income for 9M24 totaled R$620 million, up 55.8% year-over-year; 3Q24 net income was R$318.4 million, up 46.1%.

• Adjusted EBITDA for 9M24 was R$563 million, up 110.2%; 3Q24 adjusted EBITDA was R$342.0 million (+194.0%), with margin at 9.8%.

• Net financial result was positive at R$113.4 million, mainly due to derivative gains.

Outlook and guidance

• Guidance for 2025 remains positive, with continued investments in biofuels, new store openings in Mato Grosso and Rio Grande do Sul, and expansion in the Araguaia Valley.

• Soybean origination projection for 2024 raised to 3.1 million tons; corn revised to 430 thousand tons.

• Biodiesel volume projection for 2024 increased from 490 to 560 thousand m³.

• Q4 and Q1 2025 expected to see improved margins in crop protection and input retail, with a better product mix and robust order backlog.

• Optimism around biofuels is supported by favorable legal frameworks and strong demand, both domestically and globally.