In This Article:
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Net Revenue: Approximately BRL3 billion for the quarter.
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Adjusted EBITDA: Emphasis on managing fixed costs and expenses.
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Net Financial Expense: BRL768 million for the quarter.
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Adjusted Net Income: BRL188 million.
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Consolidated Net Debt: BRL12.6 billion at the end of the quarter.
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Leverage Ratio: 1.6 times net debt to adjusted EBITDA.
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Average Cost of Debt: 103% of the CDI.
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Debt Duration: Extended to 5.9 years.
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Investment: BRL1.8 billion during the quarter.
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Recurring CapEx: BRL468 million.
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Expansion CapEx: BRL959 million, excluding Mato Grosso railway project.
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Mato Grosso Railway Project Investment: BRL353 million.
Release Date: May 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Successful rollout of the 135 rail cars train design, enhancing rail capacity and energy efficiency.
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Net revenue reached approximately BRL3 billion, supported by healthy pricing dynamics in main markets.
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Leverage remains at a healthy level with a net debt to adjusted EBITDA ratio of 1.6 times.
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Strong liquidity position with no significant debt maturing over the next three years.
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Investment in the Mato Grosso railway project is on schedule and on budget, indicating effective project management.
Negative Points
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Total volumes were impacted by a reduction of roughly 1 billion RTK in the southern operation and 300 million RTK in the northern operation.
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Net financial expense for the quarter was BRL768 million, driven by higher interest rates and a larger net debt balance.
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Challenges in the southern operation due to lower availability of agricultural commodities and infrastructure damage.
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The transportation of grains from Mato Grosso is experiencing delays, affecting volume dynamics.
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Increased competition in the southern operation has led to reduced volumes, posing a challenge for volume recovery.
Q & A Highlights
Q: Could you help us understand the dynamics of transporting grain from Mato Grosso, especially given the delays? Will we see this grain in Q2 or Q3? A: Guilherme Lelis Machado, Chief Financial & Investor Relations Officer, explained that the late harvest window due to the soybean planting in September affected the timing. The soybean crop in Mato Grosso is the largest in four years, and volumes are expected to be transported in Q2 and the second half of the year. The corn crop outlook is also positive, and the company is adapting operations to meet market demand.
Q: What about the CapEx guidance and volume seasonality for the year? A: An unidentified company representative stated that CapEx reflects the financial schedule of projects and will converge towards announced levels. The Mato Grosso rail is on track despite initial delays due to rain. The seasonality is different this year, with a weaker start, but investments in capacity and efficiency are expected to increase volumes over the next quarters.