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BrasilAgro - Companhia Brasileira de Propriedades Agrícolas (B3: AGRO3) (NYSE: LND), a leading company in the acquisition, development, and sale of rural properties in Brazil, has announced updates to its agricultural operations estimates for the 2024/2025 crop year, indicating an overall increase in production. The company, currently valued at $393 million, maintains a strong financial position with a "GOOD" health score according to InvestingPro analysis, supported by a healthy current ratio of 2.01 and consistent dividend payments.
The total planted area for grains has seen a 3% increase from the previous year, with a slight 1% deviation from the company’s initial projections. Favorable weather conditions during planting have been beneficial, with crops showing satisfactory growth. As a result, BrasilAgro expects a 2% increase in total grain and cotton production compared to their original estimates.
With analysts forecasting 47% revenue growth for fiscal year 2025, these operational improvements align with positive financial expectations. InvestingPro data reveals 8 additional key insights about BrasilAgro’s growth potential and market position.
Soybean harvesting is currently 7% complete, with corn and bean harvesting anticipated to start in April and cotton in late May. The company also reported the conclusion of its sugarcane harvest in November, yielding 2.0 million tons of cane and demonstrating a 5.5% increase from the last harvest.
This improvement is attributed to a 3.0% rise in Tons of Cane per Hectare (TCH) and a 2.5% increase in Total (EPA:TTEF) Recoverable Sugar (ATR). For the upcoming 2025 harvest, BrasilAgro estimates a production of 2.3 million tons of sugarcane with a TCH of 86.31.
In terms of livestock, BrasilAgro maintains a stock of 16.3 thousand head of cattle across 16,720 hectares of pastures in Brazil and Paraguay. The company notes that cattle weight gain during the first four months of each crop year is historically lower due to rainfall distribution and pasture quality, but the current figures align with expectations for this period.
While the company has provided these operational estimates, they clarify that these figures are hypothetical and should not be seen as a performance guarantee. The information is based on a press release statement from the company. For investors seeking deeper insights, InvestingPro analysis shows the stock trading at a modest P/E ratio of 7.66, offering a substantial 6.44% dividend yield, with notably low price volatility (Beta: 0.43) compared to market averages.
Gustavo Javier Lopez, CFO & IRO of BrasilAgro, signed off on the report dated February 6, 2025, as per the requirements of the Securities Exchange Act of 1934. The company’s business address is located at Av. Brigadeiro Faria Lima, 1.309, 5th Floor, São Paulo, Brazil, with Lopez available for contact regarding investor relations.
In other recent news, BrasilAgro announced strong financial results for the first quarter of the 2024/2025 crop year, with a reported net income of R$97.4 million and an adjusted EBITDA of R$169.4 million.
Despite significant commodity price volatility and exchange rate fluctuations, the company’s strategic hedging and efficient cost management led to improved margins. BrasilAgro’s operational Adjusted EBITDA of R$61.4 million represented a 166% growth year-over-year.
In other developments, the company revised its crop mix, resulting in a 3% increase in total planted area and a 4% increase in total grain and cotton production. The company’s real estate segment also saw significant contribution, with the second part of the Alto Taquari farm sale bringing in R$189.4 million.
In addition, BrasilAgro received the Great Place to Work (GPTW) seal and the Great People Mental Health seal, recognizing its efforts to promote employee well-being. The company’s property portfolio spans across six Brazilian states, as well as Paraguay and Bolivia, totaling 271,016 hectares. Lastly, BrasilAgro’s net revenue from farm sales and agricultural product sales totaled R$454.6 million for the quarter.
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