BrasilAgro - Companhia Brasileira de Propriedades Agrícolas Q2 FY2020 earnings call

• Agrifirma acquisition: Closed last week, close to existing properties, working on irrigation, mature plantations (3-8 years old) for stable production.
• Sugarcane productivity: Increased from 57 tons to over 72 tons in a year, São José Farm in Midwest showing growth.
• Cattle raising: Transition tool, price of beef increased compensating for lower productivity gains.
• Grains: Promising soybean yields in 60,000 hectares, corn second harvest started with high expectations.
• Liquidity and shareholder base: Improved liquidity, need for larger shareholder base, bonus subscription explained as a guarantee instrument.

Revenue was BRL271.9 million, net profit was BRL61 million, and adjusted EBITDA was BRL70.7 million. Agrifirma acquisition includes 28,930 hectares with majority mature plantations (3-8 years old) close to existing properties for synergies. Sugarcane has seen intense productivity ramp-up, e.g., from 57 tons to over 72 tons in a year. Cattle raising is a transition tool, with price of beef increasing compensating for lower productivity gains. Grains: soybean has promising yields in 60,000 hectares, corn second harvest started with high expectations. Revenue contribution details: Revenue from various segments including sugarcane, grains, etc., with sugarcane showing significant productivity growth.

• Expect higher operational results this year due to good harvests and productivity improvements.
• Anticipate strong results from sugarcane and grains due to better prices and productivity.
• Potential commercial gains from favorable exchange rates and commodity prices.

• Climate risk in certain regions.
• External factors like coronavirus and market fluctuations.
• Liquidity and interest rate risks in past, but now lower interest rates offer new acquisition possibilities.