Results
Latest quarterly results published by the Company
See a summary of the 2T22 Earnings Release (second quarter of 2022) made available on CVM´s website as well as a summary of the latest quarterly results published by the Company.
For more details, access the Investor Relations website www.slcagricola.com.br/ir
Highlights of the period
| (R$ thousand) |
1S21 |
2S22 | AH |
| Net revenue | 2.471.254 | 4.073.968 | 64,9% |
| Change Fair Value of Biol. Assets | 1.655.140 | 1.810.419 | 9,4% |
| Gross income | 1.638.142 | 2.407.043 | 46,9% |
| Gross margin | 66,3% | 59,1% | -7,2p.p. |
| Operating income | 1.382.028 | 2.123.916 | 53,7% |
| Operating margin | 55,9% | 52,1% | -3,8p.p. |
| Net profit | 759.759 | 1.282.645 | 68,8% |
| Net margin | 30,7% | 31,5% | 0,8p.p |
| Adjusted EBITDA | 973.000 | 2.079.692 | 113,7% |
| Adjusted EBITDA margin | 39,4% | 51,0% | 11,6p.p |
| Net debt | 1.402.800 | 3.267.113 | 132,8% |
Marketplace Overview
Variation in the price of commodities
The second quarter of 2022 was marked by high volatility in agricultural commodity and input prices caused by weather problems, the Russia-Ukraine war, the energy crisis, increased risk aversion and the global economic slowdown.
The unfavorable weather events in 2021/22 crop year, such as low precipitation in part of the states of Bahia and Mato Grosso, as well as low temperatures with frost in Mato Grosso, adversely affected the production potential of crops. This scenario led to adjustments to our yield estimates, for cotton and second-crop corn, in comparison with the Material Fact disclosed by the Company in July 7th, with the advance in harvest operations.
On the other hand, there was a decline in the cost per hectare budgeted, due to the lower yield, which results in savings on variable production costs.
Despite the lower yield caused by weather fluctuations, we continued to deliver good results, reflecting the success of our strategic decisions. The movement translated into robust financial results, with Adjusted EBITDA in 1S22 reaching a
record R$2.1 billion, representing growth of 113.7% on 1S21 and margin of 51.0%. In the quarter, Adjusted EBITDA was R$820.3 million with margin of 49.3%, representing growth of 66.0% from 2Q21. Net income advanced 15.3% compared to 2Q21 to end the quarter at R$486 million. In the year to date, net income was a record R$1.28 billion, 68.8% higher than in the prior-year period. The main factors driving the growth in Adjusted EBITDA and net income were the expansion in gross margin and higher volume invoiced in 1S22.
The Net Debt/Adjusted EBITDA ratio decreased from 1.42x in late 2021 to 1.09x in the second quarter of 2022, showing that the Company maintains a comfortable level of financial leverage
while supporting its growth plan.
Operational Performance
2021/22 Crop
Soybeans
The harvest was concluded with a yield of 3,994 kg/ha, 6.1% above the budget and 31.9% above the national average (CONAB, Jul/22).
Cotton
As of July 29, we had harvested 52.43% of the total planted area of first-crop cotton. As disclosed previously, we experienced high water stress in March in the state of Bahia. Although precipitation was near the historical average for April, the damage caused by water stress to crop yield was irreversible. Therefore, our current yield estimate is 1,662 kg/ha, 11.2% below budget.
As of July 29, the area harvested represented 48.28% of the area planted. As described in the previous report, the state of Mato Grosso experienced atypical water stress Precipitation in March, April and May was below the historical average. Therefore, our current yield estimate is 1,335 kg/ha, 26.0% below budget. In addition to the drought, the frost that occurred interrupted the crop cycle and paralyzed the formation of cotton-bolls.
Corn
As of July 29, 72.98% of the area planted had been harvested. In Mato Grosso, second-corn crop also was affected by the water stress shown in Figure 15. In addition, the region’s low temperatures combined with frost events adversely affected crop development. As such, the crops are presenting yields below our initial projection. Our current estimate is to produce 6,318 kg/ha, which is 18.1% lower than the initial budget.
Check out our Investor Relations website
SLC Agrícola is a Company that has traded shares on Bovespa since 2007.
On the Investor Relations website, you will find complete content that includes:
– Calendar of events where SLC Agrícola´s IR team will be in attendance in the coming months
– Downloads section, with historical data spreadsheets and a file of documents already published by the Company, from release of results to relevant facts
– Quotations and charts section
– Details on corporate governance
– “Why invest in SLC Agrícola?” Section
