08/08/2024 – 22:17
Boa Safra, a Brazilian soybean seed producer, posted a net profit of R$18.1 million in the second quarter of 2024. The result represents a 34.92% drop compared to the same period in 2023, when profit was R$27.8 million, the company reported this Thursday.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in the second quarter was R$7.195 million, a reduction of 66.9% year-on-year. Net operating revenue fell 34.86% to R$87.6 million.
“This decrease is in line with the seasonality of processing and disposal, which were later,” stated Boa Safra’s Financial Director, Felipe Marques, in an interview with Broadcast Agro.
According to the executive, part of the reduction in profit is due to the increase in costs with the increase in the number of employees and relocations due to the change in administrative headquarters and the implementation of new distribution centers.
“This is the period in which the company concentrates its costs and expenses. Our main product is the sale of seeds, and soybean planting in Brazil, mainly in Mato Grosso, begins in the second week of September. Therefore, the revenue generated by these sales is only recognized in the third and fourth quarters, while we prepare for the next harvest. Costs and expenses, on the other hand, are concentrated at the end of the first and second quarters. Therefore, we recommend a long-term analysis, which smooths out the effects of seasonality,” said Marques.
In the 12 months up to the end of June, Boa Safra’s accumulated net profit grew 87.5% compared to the previous 12-month period, reaching R$356.9 million. In the case of adjusted EBITDA, there was an increase of 14.88% in the same comparison, to R$256.3 million. Net revenue rose 8.96%, to R$1.985 billion.
“We are known for being the most seasonal company on the Stock Exchange. And that is why the quarterly result, although important, is secondary to the discussion about the order book”, added Marques.
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