BrasilAgro

The strength of agribusiness has proven to be fundamental to ensure food supply to the population during this severe sanitary crisis caused by the coronavirus pandemic. During this time, our team spared no effort to serve our purpose: responsibly-produced food.

We ended the fiscal year 2019/2020 with a net income of R$119.6 million and adjusted EBITDA of R$117.6 million, all of which reflects our R$559.1 million net revenue, comprised by R$71.5 million from farm sales and R$487.6 million from the sale of agricultural products and leasing, click here to view the Financial Statements. The results achieved in this report period undoubtedly prove that our business model and the execution of our strategy have been assertive and allowed us to be resilient in these turbulent times.

Our Portfolio

We have expanded our portfolio to 266,077 hectares, 50,747 of which are leased to third parties. One of our greatest achievements in this harvest year was the merger of 28,930 arable hectares from Agrifirma, in the Western region of the state of Bahia, adding synergies and economies of scale, once the area is located close to the Chaparral and Jatobá Farms, in addition to other financial and commercial benefits. Another important transaction was the Serra Grande Farm acquisition, located in the city of Baixa Grande do Ribeiro (state of Piauí). The farm has a total area of 4,500 hectares, of which 2,900 are arable hectares to be developed, suitable for grain cultivation.

In 2020, we have also invested US$1.0 million in the Agriculture Fintech startup Agrofy, focused on developing the agricultural sector’s operational chain. This effort seeks innovation and a better use of technology to achieve greater business efficiency and sustainability.

Value creation in the short-, mid- and long-term also relies on the Company’s environmental management. The management of land use, for instance, is a very material topic for the Company’s operations and creation of value for its properties. We have a Protection Areas Program, that adds another 72,700 hectares of protected native vegetation in Brazil, corresponding to 27% of total property area, ensuring and contributing to biodiversity maintenance.

Periods of crisis bring along many challenges, but they also create learning and growth opportunities. We ended the 2019/2020 harvest year with many perspectives and prepared for the challenges that lie ahead. We begin the new year more robust, relying on more sophisticated tools and processes, certain that we made the right decisions and are ready to capture the best opportunities and generate sustainable results.