BrasilAgro - Companhia Brasileira de Propriedades Agrícolas Q1 FY2022 earnings call

• Net revenue for Q1 was 378 million reais, net profit 107.9 million reais, adjusted EBITDA 190.6 million reais.
• Finalized sale of two farms: Rio do Meio (approx. 8,000 hectares, selling 2,800 hectares) and Alto do Taquari (selling 2,700 hectares in two installments).
• Cultivated area grew 10% year over year through own land, leased land, and land development.
• Sugarcane production not impacted by drought due to irrigation, with prices contributing to strong operational results.
• Strong contribution margins from corn (66.96 reais price), soybean, and cotton (68% increase in sales).

In Q1, BrasilAgro had a net revenue of 378 million reais, a net profit of 107.9 million reais, and an adjusted EBITDA of 190.6 million reais. For product segments: Soybean saw an important increase in production, with revenues from operations influenced by exchange rates. Winter corn had a significant leap in planted area. Cotton had a 68% increase in sales compared to the previous harvest, with a price of 163 reais. Sugarcane production was 520,000 tons, not affected by drought due to irrigation, and its price increases were leveraging operational results. Revenue contribution from each segment was tied to their respective production and price performances.

• Expect sugarcane prices to continue leveraging operational results.
• Dividend yield goal of 5.3%.
• Plan to be aggressive in buying farms when opportunities arise and distributing dividends to shareholders based on company results and opportunities.

• Concerns about fertilizer prices, with no immediate drop expected in the next 6 months due to natural gas prices and industry dynamics.
• Weather-related risks in regions like Paraguay and the south of Brazil affecting crop production.
• Uncertainties in the agro chemicals market due to factors like natural gas prices, ocean freight costs, and container shortages.

Q: What is the difference between NAV and price of shares?

A: 68% difference.

Q: Concerns about fertilizer prices?

A: Followed fertilizer prices, no immediate drop expected in next 6 months.

Q: Buyback of shares?

A: Monitoring and may consider buybacks to show share value.

Q: Impact of deforestation treaty?

A: Company has few areas to transform, expects to finish development by 2025.