SLC AgrícolaRecord of cotton invoiced is a highlight in the 2024 results

Home / News / Record of cotton invoiced is a highlight in the 2024 results

Record of cotton invoiced is a highlight in the 2024 results

On March 12, SLC Agrícola announced its financial results for the fourth quarter and the fiscal year 2024 to the financial markets, and on March 13, it held a videoconference to discuss these results. Last year, the company achieved a record in cotton invoiced, shipping 364,000 metric tons, which is 52% more than in 2023. During the period, the company also recorded a Net Income of R$482 million, with a net margin of 7%. The videoconference had the participation of the CEO, Aurélio Pavinato, the Chief Financial and Investor Relations Officer, Ivo Brum, and the Financial and Investor Relations Manager, Rodrigo Gelain.

The year was also marked by the expansion of the potential planted area by an additional 60,000 hectares for the 2024/25 crop year. This expansion was driven by the enlargement of the joint venture with Agro Penido (Pioneira Farm), the establishment of a joint venture with Agropecuária Rica S/A (Preciosa Farm), and the signing of a new lease agreement in the state of Piauí, which added area to Parnaguá Farm. This crop year, the company expects to reach 731,000 hectares planted, a 10.6% increase compared to the 2023/24 crop year.

"The year 2024 was very significant for SLC Agrícola, and the results indicate that we are on the right path towards a promising future in Brazilian agribusiness. Just as we set a record in cotton invoiced, we also made a significant investment in CAPEX to support the growth in the planted area that we achieved. We continued with the expansion plan by acquiring SLC Landco last year and, more recently, Sierentz Agro Brasil. We have already purchased in advance a large part of the inputs for the 2025/2026 crop year, and the sales expectations of seeds for 2025 exceed last year's numbers,” emphasizes the CEO of SLC, Aurélio Pavinato.

The company's Net Revenue was R$6.9 billion. Adjusted EBITDA reached R$2 billion, with an adjusted EBITDA margin of 29.4% and free cash generation of R$34 million. Cash generation was mainly impacted by the decrease in the gross income from soybean and corn, the investment to expand planted area for the 2024/25 crop year and the acquisition of ownership interest held by non-controlling shareholders of SLC Landco. Even so, the leverage remained controlled, at 1.80x.

To support the expansion of the planted area, the 2024 CAPEX has reached R$1.1 billion, marking a record level of investment and representing a 7.3% increase compared to 2023. Capex was mainly allocated to machinery, equipment and tools, soil correction and buildings and facilities, with emphasis on the expansion of irrigation to 3,161 hectares at the Piratini farm, in the state of Bahia. This involved a capital allocation of R$62 million, corresponding to phase II of the technical project.

The acquisition of ownership interest held by non-controlling shareholders of SLC Landco Empreendimentos Agrícolas S.A., for the total amount of R$524.8 million, was also a

highlight of the year. The completion of this transaction allows greater flexibility in the execution of SLC Agrícola's strategies for optimizing agricultural assets and expanding operations.

Seed business

In the 2024 seed business, SLC Agrícola reported an EBITDA of R$106.2 million, with an EBITDA margin of 13.9%, and a net income of R$54 million, resulting in a net margin of 7.3%. The highlight was the development of its customer portfolio, which led to a 39% increase in sales to third parties (including small and medium producers, as well as resellers) and a 9.4 p.p. rise in gross margin compared to the year 2023. The total invoiced volume in 2024 (measured in bags containing 200,000 seeds each) also experienced a 17.8% increase compared to the previous year, with soybean volume rising by 18.7% and cotton volume increasing by 10.6%. For 2025, sales of soybean seeds to third parties plus internal consumption are estimated at 1,400,000 bags, an increase of 12.0% from the previous year. For cotton seeds, our estimate of sales to third parties plus internal consumption is 145,000 bags, an increase of 1.2% from the previous year.

Acquisition of inputs

For the 2024/2025 crop year, the company has completed the purchase of inputs, including fertilizers (phosphates, potassium chloride, and nitrogen-based), pesticides and seeds. The costs per hectare budgeted for the crop year decreased 5.2% compared to the 2023/24 crop year, driven by the drop in the prices of fertilizers, pesticides and seeds with a strong correlation to commodity prices. For the 2025/2026 crop year, for which planting will begin in September 2025, the company has started purchases, hedging a part of the fertilizer demand (77% of the demand for phosphate fertilizers, 82% of potassium chloride and 57% of nitrogen-based fertilizers) and seizing attractive market opportunities.

ESG Agenda

Reaffirming its commitment to sustainability in the agricultural sector, the company concluded 2024 by significantly expanding its areas certified for regenerative agriculture practices according to the Regenagri standard. In addition to the Planalto (MS) and Pamplona (GO) farms, certified since 2023, the Palmares (BA), Pantanal (MS), Planeste (MA), and Planorte (MT) farms have now also obtained this certification. Combined, these units encompass 137,000 certified hectares, establishing SLC Agrícola as the leading company in the Americas with the largest certified area for soybean and cotton cultivation under the Regenagri Program.

Simultaneously, SLC Sementes obtained its first ISO 9001 certification, consolidating the Company's commitment to quality and excellence in its processes. This internationally recognized certification was specifically granted to the cotton seed production processes in Bahia, one of SLC Sementes' main hubs. The ISO 9001 standard attests that the company meets the strictest quality management criteria, ensuring efficiency, reliability and customer satisfaction. This milestone highlights SLC Sementes' ongoing efforts to enhance its practices and remain at the forefront of the industry.

SLC Agrícola

Record of cotton invoiced is a highlight in the 2024 results

Mais Notícias de "Agricultura"

Veja Também

Últimas notícias