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Introduction & Market Context
BrasilAgro (BOVESPA:AGRO3) presented its third quarter and nine-month results for fiscal year 2025 on September 4, highlighting a significant financial turnaround amid a mixed commodity price environment. The agricultural company, which operates across Brazil’s key farming regions, has navigated volatile market conditions through strategic hedging and operational improvements.
The presentation revealed that while soybean prices declined slightly (-2%) and cotton dropped more significantly (-13%) between June 2024 and April 2025, the company benefited from strong increases in corn (+31%), cattle raising (+46%), and ethanol (+17%) prices. These market dynamics created both challenges and opportunities that shaped the company’s performance.
As shown in the following commodity performance chart:
Quarterly Performance Highlights
BrasilAgro reported impressive financial results for the first nine months of fiscal 2025, with net revenue reaching R$ 870.5 million, adjusted EBITDA of R$ 195.3 million, and net income of R$ 76.7 million. These figures represent a substantial improvement from the same period in the previous fiscal year.
The company’s financial highlights demonstrate the strength of its performance:
The detailed financial breakdown shows that revenue from operations increased by 20% year-over-year, from R$ 540.8 million in 9M24 to R$ 648.7 million in 9M25. Net sales revenue saw an even more substantial jump of 43%, reaching R$ 778.0 million compared to R$ 545.9 million in the previous year. Most notably, the company achieved a remarkable turnaround in profitability, swinging from a net loss of R$ 6.0 million in 9M24 to a net income of R$ 76.7 million in 9M25.
Detailed Financial Analysis
BrasilAgro’s improved performance was driven primarily by its soybean operations, where gross income increased from R$ 27.4 million in 9M24 to R$ 48.8 million in 9M25. The quantity of soybeans sold rose significantly from 101,738 tons to 139,631 tons. Meanwhile, the company reduced losses in its corn segment, with negative gross income improving from -R$ 12.6 million to -R$ 7.0 million.
The company’s debt position as of March 31, 2025, stood at R$ 885.0 million, with R$ 337.6 million classified as short-term and R$ 547.4 million as long-term. The majority of the debt (90.59%) is tied to the CDI rate. BrasilAgro also reported farmland sales receivables of R$ 815.6 million, which partially offsets its debt obligations.
The following chart illustrates the company’s indebtedness structure:
Strategic Initiatives
BrasilAgro has implemented a robust hedging strategy to mitigate market risks. As of May 7, 2025, the company had hedged 72% of its soybean commodity exposure at R$/USD 10.88 and 83% of the associated exchange rate risk at R$/USD 5.41. For cotton, 47% of commodity exposure was hedged at R$/USD 77.30 and 71% of exchange rate risk at R$/USD 5.35. This strategic approach helps protect the company from adverse price movements and currency fluctuations.
The detailed hedging positions across commodities are shown below:
On the operational front, BrasilAgro reported that its estimated production for the 2024/25 harvest is expected to be 34% higher than the 2023/24 harvest. However, the company has adjusted its projections slightly downward by 6% compared to earlier estimates, likely reflecting weather conditions and other agricultural factors.
The harvest status across different crops shows significant year-over-year growth:
The company has also been strategic in managing input costs. Despite rising prices for key fertilizers such as MAP BRASIL (+24%) and KCL BRASIL (+22%), BrasilAgro has secured portions of its fertilizer needs for the 2025/26 harvest, with 50% of potassium chloride, 45% of phosphates, 10% of NPK formulated, and 10% of defensives already purchased.
Forward-Looking Statements
Looking ahead, BrasilAgro appears well-positioned to continue its positive momentum, with strong hedging positions and increased production estimates. The company’s strategic management of input costs and currency risks should provide some insulation against market volatility.
However, challenges remain, including fluctuating commodity prices and rising input costs for certain fertilizers. The company’s ability to maintain its improved profitability will depend on effective execution of its operational plans and continued strategic risk management.
BrasilAgro shares closed at R$ 20.82 on September 3, 2025, representing a slight decrease of 0.29% from the previous close. The stock has traded between R$ 19.61 and R$ 25.42 over the past 52 weeks, suggesting that investors are still evaluating the sustainability of the company’s improved performance.
Full presentation:
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