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BrasilAgro - Companhia Brasileira de Propriedades Agrícolas (LND)

Q2 2020 Earnings Call· Tue, Feb 4, 2020

$3.85

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Transcript

Operator

Operator

Good afternoon. Welcome to the conference call of BrasilAgro for the results of Q2 2020. We will have with us, Mr. Andr Guillaumon, CEO; and Mr. Gustavo Lopez, Administrative Office and Investor Relations Office. We're informed that the presentation is recorded. [Operator Instructions]. The audio results will be presented through the Internet at our site, where you will find also the slides and PowerPoint presentation.Before we continue, we'd like to clarify that any declarations made during this conference call concerning business perspectives of BrasilAgro, projections, operational goals, financial goals are based on assumptions of the company's Board as well as information currently available. They involve risks and uncertainties and assumptions because they refer to future events, and therefore, depend on circumstances that may or may not occur. Investors should understand that general economic conditions, industry conditions and other operational factors may affect things in the future and lead to results that may differ materially from what is said here.Now I'd like to pass the floor to Mr. André Guillaumon, CEO, who will begin the presentation. Sir, you may proceed. André Guillaumon: Good afternoon. Once again, it's a great pleasure to talk to you and share our results in the quarter, our Q2 2020, with a lot of optimism, a lot of victories. We'd like to begin on Page 2, show -- where we show our numbers and then we will go into detail and detailed explanations of everything that happened in this quarter. One of the highlights we have for you is a revenue of BRL272 million, BRL271.9 million. Net profit BRL61 million, net profit adjusted EBITDA BRL70.7 million. I believe we talked a lot with you about Agrifirma's acquisition. But I'd like to remind you, those who are not present, or did not see the video. We will give…

Gustavo Lopez

Analyst

Good afternoon. Thank you for participating. Gustavo Lopez. Let's see what happened with the company's EBITDA, Page 9. We have -- as you know, we follow accounting norms. So we have adjusted EBITDA, and we can see here the gains in terms of sugarcane and cattle and soybean, you have the results available. This -- we see here the numbers as we sell corn of the previous harvest. Here, it's important to mention we have here six months. Here, in this EBITDA, we have a combination of operations. And in the first six months, we have the sale of the inventory of grains, and 80% of the sales of sugar cane and so for six months ending in December, we have adjusted EBITDA BRL70 million. And in the same period last year, it was BRL153 million. The main difference is real estate.Last year, we had recorded a sale of the Chaparral Farm with an accounting profit. And this year, we have sales of a small part of the Chaparral Farm. And this was recorded in this period now. This gives us the results, 1.4. When we see the EBITDA of the quarter, the result's BRL7.7 million negative. Last year, we had sales value that were record. This year, too, we have sales, the budget according to the budget, but as André mentioned, we had the results that you heard, soybean, corn. And in September 2019, we had $23 million that were open with an exchange rate of BRL3.97 to $1. And then the exchange rate went to BRL4.12 to a $1, generating these results. This has a great impact on the adjusted EBITDA.Now Page 10. Here, what we show is adjusted EBITDA for 6 months, BRL49.9 million, almost BRL50 million. Last year, we had BRL46 million. And here, the main…

Operator

Operator

The conference call of BrasilAgro is concluded. Thank you for participating. We wish you a good afternoon.