SLC AGRÍCOLA S.A. GENERAL INFORMATIONS
Porto Alegre, August 9th, 2023 - SLC AGRÍCOLA S.A. (B3: SLCE3; ADR: SLCJY; Bloomberg: SLCE3BZ;
Reuters: SLCE3.SA) announces today its results for the second quarter of 2023. The following financial and operating information is presented in accordance with International Financial Reporting Standards (IFRS). The information was prepared on a consolidated basis and is presented in thousands of Brazilian real, except where stated otherwise.
In this Earnings Release, the terms below will have the following meaning:
"2Q22": means the data, based on the consolidated interim financial statements, that consider the operations of the Company and of its subsidiaries, for the second quarter of 2022 (April to June).
"2Q23": means the data, based on the consolidated interim financial statements, that consider the operations of the Company and of its subsidiaries, for the second quarter of 2023 (April to June).
"1S22": means the data, based on the consolidated interim financial statements, that consider the operations of the Company and of its subsidiaries for the first semester of 2022 (January to June).
"1S23": means the data, based on the consolidated interim financial statements, that consider the operations of the Company and of its subsidiaries for the first semester of 2023 (January to June).
"HA": HA refers to the horizontal percentage variation between two periods.
"VA": VA refers to the percentage representativeness of the account over a given total.
Disclaimer
We make statements concerning future events that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of our Management and on the information currently available to the Company. Forward-looking statements include information on our current plans, beliefs or expectations, as well as those of the Company's directors and officers. Forward-looking statements include information on potential or assumed operating results as well as statements that are preceded, followed by or include the words "believe," "may," "will," "continue," "expect," "project," "intend," "plan," "estimate" or similar expressions. Forward-looking statements and information provide no guarantee of performance. Because they refer to future events, they involve risks, uncertainties and assumptions and as such depend on circumstances that may or may not occur. The Company's future results and creation of value for shareholders may differ significantly from the figures expressed or suggested in the forward-looking statements. Many factors that will determine these results and values are beyond our capacity to control or predict.
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QUARTER'S FINANCIAL HIGHLIGHTS
(R$ thd) | 1S22 | 1S23 | HA | 2Q22 | 2Q23 | HA |
Net Revenue | 4,073,968 | 3,663,737 | -10.1% | 1,664,892 | 1,444,422 | -13.2% |
Variation in Fair Value of Biological Assets | 1,810,419 | 1,540,641 | -14.9% | 723,691 | 685,770 | -5.2% |
Gross Income | 2,407,043 | 1,900,766 | -21.0% | 928,366 | 732,980 | -21.0% |
Gross Margin | 59.1% | 51.9% | -7.2p.p. | 55.8% | 50.7% | -5.1p.p. |
Operational Result | 2,123,916 | 1,617,280 | -23.9% | 808,316 | 644,004 | -20.3% |
Operational Margin | 52.1% | 44.1% | 8.0p.p. | 48.6% | 44.6% | -4.0p.p. |
Net Income | 1,282,645 | 923,694 | -28.0% | 485,585 | 348,719 | -28.2% |
Net Margin | 31.5% | 25.2% | -6.3p.p | 29.2% | 24.1% | -5.1p.p. |
Adjusted EBITDA | 2,079,692 | 1,503,319 | -27.7% | 820,262 | 569,743 | -30.5% |
Adjusted EBITDA Margin | 51.0% | 41.0% | -10.0p.p. | 49.3% | 39.4% | -9.9p.p. |
Cash Flow | (131,488) | (828,629) | 530.2% | (580,767) | (386,073) | -33.5% |
Invoiced Volume (tonnes)
Crops | 2Q22 | 2Q23 | Δ% |
Cotton | 49,180 | 51,252 | 4.2% |
Cotton seed | 11,166 | 18,170 | 62.7% |
Soybean | 388,785 | 356,755 | -8.2% |
Corn | 51,475 | 31,468 | -38.9% |
Other Crops | 12,809 | 7,991 | -37.6% |
Gross Income by Crop - R$/tonnes
Crop | 2Q22 | 2Q23 | Δ% |
Cotton | 5,721 | 2,864 | -49.9% |
Cotton seed | 1,034 | 522 | -49.5% |
Soybean | 1,378 | 962 | -30.2% |
Corn | 382 | 428 | 12.0% |
Cattle(1) | 125 | (562) | n.m. |
(1)R$/head
Hedge Position - FX - Material Fact 07.03.2023 x 08.07.2023 Position
CROPS | Material Fact 07.03.2023 | 08.07.2023 | Variation | |||
SOYBEAN | 2022/23 | 2023/24 | 2022/23 | 2023/24 | 2022/23 | 2023/24 |
% | 72.7 | 13.7 | 76.2 | 20.5 | 3.5 | 6.8 |
R$/USD | 5.48 | 5.79 | 5.46 | 5.49 | -0.02 | -0.30 |
Commitments% | 1.7 | 49.1 | 1.7 | 36.9 | - | -12.2 |
COTTON | 2022/23 | 2023/24 | 2022/23 | 2023/24 | 2022/23 | 2023/24 |
% | 65.5 | 10.0 | 64.2 | 16.0 | -1.3 | 6.0 |
R$/USD | 5.76 | 6.14 | 5.76 | 5.7 | - | -0.44 |
Commitments % | 0.1 | 27.0 | 0.1 | 21.1 | - | -5.9 |
CORN | 2022/23 | 2023/24 | 2022/23 | 2023/24 | 2022/23 | 2023/24 |
% | 72.3 | 19.5 | 75 | 31.6 | 2.7 | 12.1 |
R$/USD | 5.79 | 5.84 | 5.76 | 5.5 | -0.03 | -0.34 |
Commitments % | - | 42.6 | - | 23.3 | - | -19.3 |
Hedge Position - Commodity - Material Fact 07.03.2023 x 08.07.2023 Position
CROPS | Material Fact 07.03.2023 | 08.07.2023 | Variation | |||
SOYBEAN | 2022/23 | 2023/24 | 2022/23 | 2023/24 | 2022/23 | 2023/24 |
% | 76.8 | 27.6 | 78.9 | 37.7 | 2.1 | 10.1 |
USD/bu | 14.47 | 12.60 | 14.45 | 12.72 | -0.02 | 0.12 |
Commitments % | 1.7 | 17.5 | 1.1 | 16.7 | -0.6 | -0.8 |
COTTON | 2022/23 | 2023/24 | 2022/23 | 2023/24 | 2022/23 | 2023/24 |
% | 59.0 | 1.3 | 65.5 | 3.6 | 6.5 | 2.3 |
USD¢//lb | 91.78 | 70.19 | 88.00 | 75.6 | -3.78 | 5.41 |
Commitments % | - | - | - | - | - | - |
CORN | 2022/23 | 2023/24 | 2022/23 | 2023/24 | 2022/23 | 2023/24 |
% | 1.9 | 2.9 | 1.9 | 3 | - | 0.1 |
R$/bag | 69.67 | 45.00 | 69.67 | 45.00 | - | - |
% | 62.2 | 20.2 | 68.7 | 28.7 | 6.5 | 8.5 |
USD/bag | 10.13 | 8.01 | 9.99 | 8.17 | -0.14 | 0.16 |
Commitments % | - | - | - | - | - | - |
Inputs -2023/24 Crop Year - % acquired
Fertilizers/Crop Protection | 1Q23 | 2Q23 | Δ% |
Nitrogen | 41% | 100% | 59p.p |
Potassium chloride | 50% | 100% | 50p.p |
Phosphates | 68% | 97% | 29p.p |
Crop Protection | 22% | 87%(1) | 65p.p. |
- This percentage refers to the total package of crop protection (100% of chemicals purchased and 13% of the biological package still to be purchased).
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QUARTER'S OPERATIONG HIGHLIGHTS
Planted Area 2022/23 Crop Year (1Q23 x 2Q23)
Crops | 1Q23 | 2Q23 | Share % | Δ % |
Cotton | 162,274 | 162,243 | 24.1% | 0.0% |
1st crop | 85,854 | 85,823 | 12.7% | 0.0% |
2nd crop | 76,420 | 76,420 | 11.3% | 0.0% |
Soybean (commercial + seed) | 346,941 | 346,941 | 51.4% | 0.0% |
Corn 2nd crop | 137,823 | 137,585 | 20.4% | -0.2% |
Other Crops | 22,810 | 27,615 | 4.1% | 21.1% |
Total Area | 669,848 | 674,384 | 100.0% | 0.7% |
2022/23 Crop Year Status
39% | 100% | 66% |
HARVESTED | HARVESTED | HARVESTED |
COTTON | SOYBEAN | CORN 2nd Crop |
162,243 ha | 346,941 ha | 137,585 ha |
planted | planted | planted |
Δ -8% | Δ +4% | Δ +13% |
VARIATION (Δ) REGARDING THE PREVIOUS CROP YEAR
Planting and Harvesting Schedule
Budget Yields for 2022/23 crop year
Crops | Budget | 2Q23 Forecast | Δ% |
Cotton 1st crop | 1,933 | 2,005 | 3.7% |
Cotton 2nd crop | 1,838 | 2,072 | 12.7% |
Cotton seed | 2,381 | 2,465 | 3.5% |
Soybean (commercial+seed) | 3,923 | 3,910 | -0.3% |
Corn 2nd crop | 7,679 | 7,750 | 0.9% |
Production Cost - R$/hectare - 2022/23 crop year
Crops | Budget | 2Q23 Forecast(1) | Δ% |
Cotton 1st crop | 15,163 | 15,308 | 1.0% |
Cotton 2nd crop | 13,677 | 13,448 | -1.7% |
Soybean(commercial+seed)(2) | 5,377 | 5,188 | -3.5% |
Corn 2nd crop | 4,867 | 4,857 | -0.2% |
Total Average Cost | 7,547 | 7,436 | -1.5% |
- Figures may suffer changes by the end of cotton processing and the sale of grains.(2) Including seed production costs.
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CONTENTS | |
MANAGEMENT'S LETTER TO OUR SHAREHOLDERS AND STAKEHOLDERS | 5 |
MARKET OUTLOOK | 7 |
OPERATIONAL PERFORMANCE 2022/23 CROP YEAR | 7 |
FINANCIAL PERFORMANCE | 9 |
ESG COMMUNICATION WITH STAKEHOLDERS | 18 |
FINANCIAL TABLES | 19 |
OPERATIONAL DATA | 19 |
LAND TABLES | 19 |
PRODUCTION UNITS AND HEADQUARTERS LOCATION | 20 |
EXHIBIT 1 - BALANCE SHEET - ASSETS | 21 |
EXHIBIT 2 - BALANCE SHEET - LIABILITIES | 22 |
EXHIBIT 3 - INCOME STATEMENT | 23 |
EXHIBIT 4 - CASH FLOWS STATEMENT | 24 |
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SLC Agrícola SA published this content on 09 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2023 21:15:30 UTC.
