Brasilagro Brazilian Agric Real Estate Co Sponsored ADR (Brazil)

Good morning, everyone. We are here once again to disclose our earnings for Brasagra. Today we're going to talk about the closing of our period from 31st of March 2025, the nine months accumulated for our harvest year 24-25. Good morning, everyone. Today I have André, our CEO, and Gustavo Lopes, our CFO. For those listening in English, we have the presentation available on the chat in the English version. And at the end, we'll also open up to Q&A. I'll turn it over to André and have a great call. Good morning, everyone. Thank you, Ana Paula. Thank you, everyone, once again for being with us, listening to the results. I'm going to tell you how we've been performing in the third quarter. Everyone knows this is a year with a lot of volatility. especially volatility in the currency. And we're going to share a bit of the strategies in the company and how the company has been able to really deliver the expected results to our shareholders. So the highlights, as we always start off with them, they're 870 million of net revenue in the first nine months, 195 in adjusted EBITDA, a year of a lot of volatility. and 76 million in net income. Basically, we'll get into this soon. Then after, it's good to always remember a bit of the history. When we defined the budget back then, we had at that moment a dollar of 490, 480. Then we were very aggressive because we look at the focus... news estimates, and they were talking about 520, 530 by the end of the year, and we thought it would not be possible to have such a difference in value, and we budgeted 530. The campaign we're working on, we considered a $530 in the beginning of the year. We had a challenge to reach 530, and then for 490, we reached 640 and went back to 570. So a lot of volatility, and the company was really keeping their eye open to not hinder the results operationally in the company. And the company a little more up ahead will provide more details. But despite this currency volatility we went through during this period, we also had the new American management come along with all of the tariffs. And then it's also worth mentioning later that we really believe that marginally Brazil could be benefited from this discussion and has already benefited. I'm going to give you some details. For soy, for example, we were also there. We had pricing reduction expectations due to the supply and demand, and we saw in the last few months that there was a recovery in the premiums, and then we're going to detail the strategy of the company a little more to capture this possibility even more with premiums that we expect up ahead. But for corn, this is a crop that has been really standing out in Brazil. We've started to produce corn ethanol as well in Brazil, which has brought a lot of stability in the price of corn. Then you have some markets that stand out, for example, some new units that are being opened. And this has helped us have stable prices, especially for Maranhão. and the unit there in Balsas where we've been able to anticipate the sales of corn, which is something we didn't have in the past. You would produce corn, it would go to the internal market or the expert's market, depending on where this production was concentrated. But now we start seeing the possibility of locking this in a bit better. Cotton is a commodity that went sideways a lot. And later we'll discuss this. Then we also talked about the cycle. of animal protein and cattle. And we have important recovery due to the price of cattle as well. And ethanol also has an intrinsic connection with petroleum, and we've been really monitoring this. And you guys have also been considering looking at the possibility of this Reduction as well.

This possibility of production compared to the previous harvest.

This harvest, the sector had an expectation of 610, 620, and now this is being reviewed to 580 million tons, which is what really has been sustaining the price of the ethanol and sugarcane. is also at about 17. Next, please. Well, I think that once again, it's worth mentioning, we've been always monitoring the margins, contribution margins, and we are finishing the harvest for summer, and we're already positioning ourselves for the next harvest.