Boa Safra Sementes S.A. (SOJA3) Earnings Call Transcript & Summary

Ladies and gentlemen, good afternoon, and welcome to our Earnings Release First Quarter 2023 (sic) [ 2025 ] of Boa Safra. This conference will be recorded, and it will be available at ri.boasafrasementes.com.br. The presentation is also available for download. [Operator Instructions] Prior to proceed, I would like to say that those are just information based on the administration of the company. Everything might involve risks and uncertainties due to future events. Therefore, it will depend on circumstances, and things may or may not occur. Reporters and analysts have to consider that we should take into account macroeconomic effects and the results might be different from what is going to be expressed today. We count on the presence of Felipe Marques, CFO and IR; and also a team of experts. Now I would like to pass the floor to Felipe Marques, who will proceed with the presentation. Felipe, you may proceed.

Good afternoon. It is a pleasure to be able to disclose our earnings release, first quarter 2025. Starting 2025, we'd like to show you that in such a short time, he managed to have a good delivery of good results. Now as per the presentation, first of all, I would like to share with you our main figures. Our net revenue, BRL 131 million, there was a growth of 90% compared to 2024. We can see that we're going to be talking about our diversification strategy and also soy seed sales. So actually, we had some area planted in the north of the country. So there was a good batch of seeds sold by January, 30 million equivalent, and that would be for the first quarter 2025. We know that we have this window and also other crops. We're going to give you details further down. Therefore, we managed to turn our results in -- to BRL 12 million in this first quarter as compared to the negative values of 2024 because of the sale of soy and that's why we have such a different result, considered gross values and margin. So there is a change on the trend. So we got us on -- there was a ceil at the stock market because it is -- because of our seasonality. Perhaps we might just drop this step that we got the most -- the company that varies the most because of the diversification of our portfolio, principally in the last few years with regards to the EBITDA of the company. The results were negative BRL 5 million, but there was a very good improvement compared to the first quarter 2024. Therefore, when we analyze the adjusted EBITDA, we can see the derivatives. We understand that this is part of our operation. The results were negative in going to BRL 28 million. As a matter of fact, when you analyze the adjusted EBITDA compared to BRL 29 million that were marked last year. So many of those derivatives are actually linked to the new crop. Actually, we're going to be cashing in on the third and fourth quarter. That's why there is this discount pass. So I'm just anticipating it here, but it is according to our budget, and we still have to buy raw material. And along with that, we have the results from the derivatives. Let us check our net results, almost BRL 17 million, 13% in net margin that is for the first quarter. But when we analyze the adjusted net profit because of the effects, we can see that we moved from BRL 6 million negative to BRL 718,000 in 2025. So it is clear that the profile of the company has changed principally in the wake of this diversification and the project that we have. And you can see that LTM '24, '25, we can see, if we analyze the entire year 2024 and now just with 1 quarter, you can see that everything is smoothing down from what we had in 2024 compared to 2023. Now when we go to the net revenue, we have a drop of 6% at the end of the day. So we see that we are starting 2025 in a new area and a new momentum for the company without the weather impacts and credit restrictions that we have to face in 2024. And of course, that would eventually affect those results in LTM 2025. Now I would like to talk a little bit about what we've been doing. We have 280,000 big banks. This is our productive capacity, growth of 70% compared to the previous year. We had 240,000 big banks as capacity. We increased 50,000 hectares, 227,000, we jumped to 274,000 hectares. So that means there is more area. There is even superior expansion if you look at the productive capacity. So for us to have much more area and make sure that we are ready to produce our raw material. Historically, we are always able -- or be always able to fulfill our productive capacity with seeds. But our balance is already showing all those results. When you analyze our stock seeds, BRL 488 million for the first quarter. So when we analyze the year before, first quarter 2024, when we had a lot of weather issues and planting was late and also the -- there was a drop in our seed production in 2024. So we can see that now we have almost a threefold result, like it's a triple amount of seeds in our warehouses. So we can see and we can show that we had a normal first quarter and quite aligned to our -- what we had been historically doing, which is fulfill our productive capacity. Unfortunately, it didn't happen in the previous year because of the weather conditions. Now with regards to our company and the way we celebrate the good situation, we have 8% of market share in last year and now 8% in market share, almost no -- there was no presence in the South. And as a matter of fact, more than 1/3 actually 1% of shares in those states. Now we understood that we would have to strengthen our operation in the south of the country. So the first quarter is really the moment to say, yes, we are starting new units under our management Tamarana in Paraná and Faxinal in Paraná. So this is a very important hub to meet the demand of our operations. Under our management, we leased area. So we are not mobilizing our capital. So we're showing our diligence as managers of the company. So it is with great joy that we disclose this information. Now checking out the map, we can see that we are present, and we are producing seeds in main areas that produce grains in Brazil. This is a national company fully consolidated in our territory, and we are mitigating operational risks that we might incur. If we didn't have a unit under our management, and we are quite diligent in mobilizing capital. And of course, we are talking about the -- how scarce capital may be or also aspects of loan. Now we have a unit in Sao Paulo. We have a unit in Sao Paulo with our joint venture, SBS Green Seeds with regenerative agriculture. We have our 16th unit right now. So this is to mark our presence in two more states in just 1 quarter. So using capital with diligence, using assets with diligence. Now with regards to our backlog order, more than BRL 1.436 billion that is figures for March. That shows how much we grew as a company. We expanded our installed capacity, as I mentioned, in big banks. We are growing even compared to 2023, well, we didn't produce 214 -- in 2024. Actually, the results in 2024 were basically the same as we had produced in 2023. So there was some sort of feeling that we are stuck. The figures were very similar, '23, '24. We kept growing. As a matter of fact, we jumped to 200,000 to 280,000 big banks at the end of the day. So in sum. So our backlog order is simply reflecting this 40% growth. Of course, with better price conditions, growers making decisions with anticipation because there will be a regular normal crop with good levels of productivity of yield, principally because of the fluctuation of dollars, so the growers are making decisions, and according to our portfolio, and we were ready, we started selling. And you see that if you compare the first quarter of 2024 to our first quarter 2025, we show this growth principally considering our installed capacity. Net revenue, as I mentioned before, there is a first quarter that is a record in terms of invoicing, BRL 131,000. More than the figure, we have to consider the breakdown of this number. BRL 131 million, BRL 97 million are from seeds, either soy or the other businesses with seeds and not grains, as we had in the company historically. So there is a major change. And this is what we are showing now in results, grains. Margin is very tiny, almost 0. When we are selling our main asset, which is seeds, we can see the margin in the first quarter, which is far from what we had in the past. As a matter of fact, this is what came to stay. Now let me show you a little bit of our diversification. Yes, we are a company that trades seeds. You can see the evolution on the graph. 2022, what we had was BRL 29 million that was other businesses. 2023, 3x more, almost twice [ holded ] in 2024. LTM, compare '24 to '25, there was also a jump from BRL 111 million to BRL 179 million. Check the share, 6% of other businesses, almost twice as much now. It is 11% of share. It is soy and new cultures. We can see that our other businesses in the company are growing so much more, so much faster than our main business, which is soybeans. So we are focusing efforts, energy, time and money to really be able to give more strength to our other businesses, our cultures. Other cultures has -- have a wide avenue. There was a very small market share. And of course, they are consolidating now. And we understand that there should be a great opportunity to grow even more. As a matter of fact, this is how we are working with that in mind. Now let us check out our finance performance. Since I mentioned, there was a little drop in LTM, 6%, now the quarter, 90% jump, as I mentioned before, EBITDA -- adjusted EBITDA, still, when you analyze the LTM in 2025, there is still the impact from 2024 because of the weather, 32% drop. Of course, we are expecting to grow -- we had expected to grow 20% past year, but it didn't happen. And of course, that impacts somehow our capacity. Of course, we have to dilute costs and so on and so forth. So there was a major impact principally if you analyze the EBITDA. If you just check on the 6% impact in our net operational revenue, you can analyze our adjusted EBITDA at 2% principally because of the derivatives. The derivatives are actually connected to the new year. But eventually those impacts are somehow anticipated in our balance. With regards to our adjusted net profit, as I mentioned, we have to consider the minor shareholders. Of course, we have EBITDA and adjusted net profit. This is just to -- this is the correct thing to show to all and for us to understand our performance. And as a company, we show here BRL 100 million in the adjusted EBITDA. And you can see the LTM 2024 analyzing the quarter, there was a positive result compared to the negative results that we had in the previous year. So in other words, we are starting 2025 in a very different note if you compare to any other first quarter of the history of this company, CapEx. Historically, we invested more than BRL 100 million since the IPO. And because of the cost, we are much more diligent in terms of mobilizing assets. Only BRL 5 million were invested in the first quarter, and now we are just thinking how we're going to make investments just analyzing 2026 and what we expect to happen. With a great deal of criteria, with a great deal of attention, we had an increase of working capital. And of course, we had to allocate capital in other lines. We had to optimize, and one of the optimizations that we had to do was actually connected to the use of CapEx. So more easily went to BRL [indiscernible] so get money from equity from -- yes, mobilize it. We understand that the cost would be too high. This would be too much for us to be setting these resources. So we're actually waging this on this bet. We are changing the tone when we mobilize our CapEx. Something that is very important to us, we take pride on having done this. We have a new profile of our BRL 500 million in our debt. We have the consolidated values of the company. We're moving from 2x to 3.4x. So showing how solid we are. 91.5% of our debt is long term. BRL 72 million in short term. So a challenging scenario. And the agribusiness, just catching up, recovering from a very difficult year, and having this level of liquidity, you see that with this level of -- our standing point that we are at that makes us very sure that we are ready to go across the tempest of 2024 with a very adequate situation in a very difficult and rough time, which was 2024. Now about our financial health. The adjusted net debt is, of course, without considering -- removing the effects from free agro, which was a small part. Because at the end of the day, we sell our receivables to exclude that, we show that we are, in fact, in a situation according to our understanding, according to the point of view from the control of the company, we have only BRL 151 million as adjusted net debt. And I think this is extremely positive because at the level of the growth in terms of stock that we have in the company, 3x -- it is superior 3x. It's a triple value. We have the same levels of net debt, just like in 2024. So this is a good indicator that we are starting 2025 with this positiveness. We are much more diligent on where we are allocating our capital. Principally, our working capital. When we analyze the controller liquidity, we moved from 1.85 to 3.2, in our index. Financial results, BRL 4 million of the company. So we showed that there is, yes, this variation from throughout the year, principally in the working capital. So just for you to understand our leveraging service of the loan -- of the debt. So if you analyze the financial results of the company on the entire year, principally from the controllers point of view. So you can see the entire picture. And this is what we really insist all the time. We always -- we want to see the entire picture and not just snapshots of each quarter because there is this variation of working capital throughout the year because of the type of business we are in. Now I want to show you a little bit of the cash flow of the company. We always get this question, what about the cash flow of the company? I know that the entire market always check on our cash flow instead of the financial reports. Now let us show you once again that our operational flow is much better. Even if you check on the first quarter of 2024, we had BRL 143 million. Now this year, 2025, our operational cash flow was only BRL 90 million. So you see, we are increasing our stock. And at the end of the day, we go to another level of growth of the company. Of course, if you're growing, you need more working capital. But even at this level of growth starting this year, you can already see an improvement of 37% in our operational cash flow. So that shows how much we are getting ready from the CapEx and the working capital point of view. There were some decisions, yes, in the house so that we can optimize our assets. Well, I am saying again. There is higher cost. We need more diligence on where we are putting our money in, and that's what we are doing as a company. Now let me highlight another important aspect, which is more than BRL 44 million from clients advancements compared to BRL 21 million that we had last year. Basically, our backlog order, part of it has been paid already. So that is what it means. This client's advancement. So that means that we saw there was advanced payments. So that shows how solid our portfolio is. So basically, part of the backlog -- that the orders have been already paid, which gives us a good result in terms of operational results. Now I'd like to open the possibility of questions that you may have.

[Operator Instructions] Our first question comes from Gustavo Fabris, BTG Pactual.

I would like to hear from you, if possible, a little bit more about this expansion in the south of the country. Principally, because you leased two units. What are the main difficulties? What is the difference that you see in the market now in the south compared to what you had in the center and the rest of the country in terms of the profile, in terms of competitiveness and also the mix of products that for your sales. What do you think you can expect from the company -- from the region to the company compared to the rest of the country?

Thank you very much for your question. As I said, the south of Brazil takes 1/3 of our crop area compared to the rest of the country. It's just 1/3. So we understood that we should be present in -- why this is it just left as a last one because that was a region that we didn't have much. We were much more prone to growth where we already had our cycles, our materials and our clients were from the other regions. Yes, sometimes our clients had operations in other regions, principally in the region of Cerrado. As a matter of fact, that was a region where we are growing fast, which is Cerrado, the center of the country was growing so much faster. That was obvious to us that a natural growth would be -- it would be easier for us to grow in other -- in the center of the country because we already -- we were ready to grow there. There were more positive aspects. This is why we left the south to last. Now we understand that now we have 8% market share, even not taking part in that region. And considering the speed of our growth, we thought, well, now it is time for us to move to the south. Of course, it is totally different from the rest of the country. We know that. Principally if you compare the size of the properties. So the areas are much smaller and also clients are many that are with cooperatives and with dealers, and there are many dealers, not all dealers that are present in the south are present in Cerrado, some of them only. But we are trying to entangle good relations with them. Last year, we had this experience. We had experience with many clients of improving good relationship with many clients, so that they could have a taste of Boa Safra, and Boa Safra has a very important and a strong name and doors were open to us. We started in the south last year. That was just like an inaugural moment. Now we are consolidating our presence and with the operation that we have now, we're going to have relevant results and volume. I cannot share how much at this point in time. But hear me, it is already relevant considering to the total volume of sales. We are quite positive with our participation in the south. We met many people who want to be with us. We want to be with Boa Safra, and that is a consolidated market. Of course, they had difficult years. It was good for us not to be present during those bad negative years, and there were many, and they were one after the other. It was somehow positive to us not to be present at that bad time when we were -- when they were living difficulties. We are positive now with the south. I'm sure that in the end of the year, we're going to be sharing, of course, all the results and our levels of market share that we're going to have be deliberately, but this is a model of a company. We are focusing on resale. And of course, we are focusing on that type of style of working with our clients in the south.

Next question comes from Pedro Gama, Citi.

There are actually two. First, I would like to hear from you about these last events that we were taking part of. I would like to hear what you -- how you feel. You feel about how the grower is feeling, what is their mood? If you think that there is a positiveness in terms of views of technology and if that would improve your mix of sales. What about Avra? So how receptive the market is. Now with regards to the perspective of seed production, you were talking about capacity, perhaps with this area that you're increasing the area, you're going to be increasing the capacity of the company. I would like to hear about the quality of the grains and the quality of the seeds that you are producing and also what the seeds that you're receiving for distribution.

Okay. Thank you very much for the question. When you analyze the scenario in the agribusiness, we can see that there is an increase 10% productivity yield, price also 10%. So there is this high peak because of the dollar. Now 10% to 20%, yes, there is more money, right? Growers are actually into the system. So if there is more money, if the growers have more money and there is more money in the system, well, the restrictions come actually when that is done because the corn recovered quite well. So basically, we are improving. At the end of the day, we're just getting the house ready. So in a nutshell, everything is so much better. The grower is looking for more technology because of the situation. The situation is so much more positive. So growers have it clear. Those growers that make more money are those who have better yields. And less cost that is obvious to all of them. Growers are getting high tech. Of course, when they don't have money, they have to make a choice. They make a choice according to what they do believe, that is what they need. And eventually, they would just drop certain things behind just to make -- so that everything makes more sense to them. So in our sector and to us, Boa Safra, we want to deliver high tech seeds with more treatment. We did this last year. We increased our treatment levels, but we didn't grow in the ticket at the end of the day, yes. But now we are ready, we have conditions when we analyze the seed treatment because growers want a complete package. So we are ready as a company. We're going to have those units such as we have our TSI machinery in all our units, but in Brazil. So we are getting ready basically. We want to treat seeds in all the regions where we are present. We're going to have conditions. Of course, this is something that it is going to happen throughout the year. Nevertheless, hear me, we have the best conditions in 2025. With regards to Avra, Avra is something that really makes us feel very positive. Good results, good demand interaction. So growers are checking on that product. They are having good results. They are all certified results. They are very good quality -- good quality product that we have with Avra. So that is going to be part of our portfolio. We are extremely positive with this new strategy with Avra. Obviously, I cannot be sharing here too much detail with the figures, but you're going to be checking on the results soon. We're just generating demand with a new culture. Well, something that we do kind of solo. It demands more time, it demands more effort, but we gave good conditions for our team. So we have a good team. They're going to be able to be doing this. Growers will be checking on our seeds. We are going to see the results soon with Avra. And of course, we want to expand the portfolio with those varieties and new varieties to really combine and be part of our portfolio with Avra. As a matter of fact, with regards to the seeds -- oh, yes, forgive me, I forgot about the seeds, yes. We're talking about first quarter, right? I show you that we have really -- we had a lot of seeds, 3x more compared to what we had in 2024, quality. Well, I have volume of seeds, 3x more. That is a fact. You can see on the balance sheet, quality. What can I tell you? Quality is not at stake to us. I'm not going to get in seeds that have no standards -- according to our standards. This is what I happened last year. What did we do? We just discharge it. We didn't even get the seeds. We simply, if the seed comes in to our warehouses, it's because it is quality seed. So we still have some work on the second quarter from the little remainder of the seeds that we are getting in. But we are already saying that there is 3x more than last year. If the seeds are here, it's because they have good quality. Otherwise, it wouldn't have happened.

Our next question comes from Pedro Fonseca, XP.

I would like to just work on what you have already mentioned. Can you just give more details about your backlog order. I know that it is something that we always talk about price and volume based on what we see in the market and based on the chats that we hear, this 40% growth is -- there is much more volume there in the scenario of a drop of price. Does that make sense, what I'm saying? What is embedded in this 40% growth with regards to the market share? Do you think that we can already have an estimate of market share growth for '25, '26? And what about the profile? Is it more technology, less technology? I would like to hear more details of whatever you can share with us. And the second thing that I would like to repeat. I know that you already mentioned, but I want to hear a follow-up what do you see? What do you feel about cash collection in our chain? Is it good, bad, neutral? Can you just give me a -- kind of sort that out with regards to cash collection? It would be good to us to hear a little bit of that.

Thanks, Pedro. I cannot give you so many details, as you asked me to. Let us give chap by chap. Backlog orders. More than 90 different varieties of seeds. So difficulty is that when you're searching for information of price and type of seeds, that is very complex because there are so many varieties that we already have and each variety has a very different dynamic and a component. So to know what it is the average price and the average price to each company, that might change a lot from company to company, I mean. So perhaps you have this. It is very difficult to read that information in detail, but we cannot come to that level of nitty-gritty detail in comparing our average price with the past. There are several strategic aspects and that might hinder our negotiations. So unfortunately, I cannot answer that to that level of detail. So there is a very peculiar mechanism there. I can tell you, though, that when we have our portfolio of seeds that have been produced, when you check out the stock, I see that we have a very -- a much more adherent portfolio, adherent to the demand that we have in the market. So our portfolio is much better compared to the portfolio last year because we produced so much last year, and there's some material that were different from what we understood would be the demand from the market. So basically, what we have in our stock, we can see that it is quite along with what we understand that the market needs. In terms of technology, we have to remember two things. We have new cultures. With the new biotechnology, we are gaining terrain. You will see there will be a growth that will be really relevant. The biotechnology will be present in our portfolio this year. You will see that on the fields. You see that in the seeds -- seeds that get benefit with this new technology paradigm with the change of technology, the use of biotechnology. Treated seeds. That is too early for us to talk about the treatment of seeds. That happens after we sell the seeds. Now actually, what we are doing? We're just assembling our seed portfolio. What we see is that there is a great deal of hope and expectation from the growers' point of view to have a package that has much more technology and much better seed. So we already anticipate -- but of course, we're talking about a starting moment. Seeds are treated further down and not right now, when we are still discussing our backlog order. Now with the other side of your question about the cash collection. 30 April and 20 May are our dates for invoicing. So there is still a lot missing there. When you analyze our portfolio, as a matter of fact, I shared here the figures. If I had to do any kind of or make any statement or something that we're not receiving on nonreceivables, that would be contemplated there, but there is none, as you saw it. Now I understand that this 2025 is very similar in my understanding to 2024 in terms of growth. Of course, our backlog order -- the receivables is much larger if you compare both years, but there is a level of normality. Our worries of having issues -- serious issues with the receivables of the company, none. Because otherwise, I would be getting ready to that. Actually, we feel there is a normal movement. Many people who have to pay are already anticipating something for the future. So there is a good solid relationship with our clients. That shows that all our credit structure here in our company, we have our insurance, we have the guarantees, we have the credit. So they are robust, and they are really being responsible for our good results in the receivables, but the final figures, yes, I only -- I can tell you about what we have as receivables from 2024, and this is going to be wrapped in June, as a matter of fact, this doesn't happen as yet. Otherwise, it would be showing on the tables that we shared with you. Was I ready to answer everything that you asked? And he says yes.

Our next question comes from Henrique Brustolin, Bradesco BBI.

Two things I would like to talk about. First, this year, you seem to have a big challenge, growing the company, opening different channels. How do you consider this capillarity, the growth of the company, the portfolio? How sure you are in terms of being able to deliver according to what you're expecting to deliver because you're growing fast. This is the first one. The second one. You even mentioned that in the beginning of your presentation, we can see that an increase in the backlog order. So how is that divided? So basically, this light at the end of the tunnel with us -- this improvement in the cash conversion cycle at the end of the year. So let me hear from you about the terms and if anything changed from the last year to this -- from last crop to this crop, the crop 2025?

Yes. There are insights, right, in the end of the day. And we are growing fast, yes, from the point of view of this DNA. So 2023, BRL 60 million, 2024, BRL 90 million. Now we're getting ready? Yes, as a company. So to be able to improve our access to the market, we are going to new regions. It is -- the complexity has skyrocketed. We’re talking about -- we have 16 units thinking about IPO. There was like about 3, 4 units. Now it's 16. Of course, much more competitiveness to give us good grounds, SG&A has to be together, so that we get good management, we get good sales. To this new profile, we're investing a lot. Why? To be able to produce seeds -- producing seeds. We always joke about it. So this is just a cost, right? It's a cost maker. What generates results is what -- when we sell the seeds. So if our portfolio is growing 40%, that shows that we are selling accordingly. We're selling what we have in the warehouse. So that gives us this good certainty that we are doing things at a right pace and producing, selling good crops. So what we wanted to make sure to have, and as a matter of fact, there were several aspects and ways in our diversification with our trade teams that are exclusively dedicated to each of the seeds. So we’re making this investment so that we can really make sure that there is no bottleneck to us. So we wanted to be sure. We are happy with the results when we see our orders, and because of our activity and our sales are now spread out. So we were really considering, are we really going to be able to grow and have this wide variety of portfolio components. This shows us that it is a reality. The company, of course, there is a lot to happen. There are so many things before us, it's BRL 1.2 billion. This is our backlog order, which is far from our installed capacity, considering our history as a company. Of course, there is a lot to be done, no shade of the doubt, but shows that we're starting at a good starting point. At the end of the day, that gives us this certainty that we have an adequate portfolio. We have good clients. They have a demand for what we have. So that makes us feel sure that we have a good positioning in the market. And we're doing well. This year is a very good positive year. 2025 is going to be good. Your other question is, can recall about terms and sale conditions. Well, in turn, about terms, you can analyze our cash flow. There are some clients that paid with anticipation. That shows that I have a very good profile with -- if you compare to 2024, there is a totally different profile. The rest of the backlog orders, yes, sometimes there are some variations. Growers have their crops. They sell and that then pay. So they were kind of in dire straits. So now they are paying because you had suffering second crop. But of course, that impacts the entire supply chain. So those who were, for example, before they wanted to pay before [indiscernible] so perhaps they may say, oh, I didn't receive. Can you just push this down the line. So I'll have to get the second crop so that I can pay you. So there is some sort of dynamic, we have to be flexible basically. And so to change the due dates. But of course, that has to happen because of the type of business. But when we see what is happening in our portfolio, and when you see it right now, I can see that there are some people paying before. Principally, if you compare last year to last year, I'm talking about percentage, not -- because at the end of the day, what we have here is a different size company in 2025. So we see improvements in terms of working capital. Now you check on the portfolio, it will be a better result. If that is going to reflect in the end of the year, what is going to be sold. So if something is going to be pushed down to the next crop, of course, there will be eventually a change in the profile. Anyhow, I think it is very difficult to have the situation. Now checking last year, the percentage, we have a credit portfolio that in terms of percentage, it is even to what we had in 2024. But there is a big change because we started a different starting point. So we are already receiving some payments. Very difficult to happen. Of course, things might happen in the future, we never know. There's no crystal ball here. But how do -- how we started this year? That shows how strong we are. Our working capital is solid, and we are open to discuss, and we are open to have good negotiations, and we are able to mitigate the working capital issues that we might have.

Our Q&A session is now closed. I would like to pass the floor to Felipe Marques, so they can draw our last comments.

Thank you very much for taking part in this session in our earnings release. Thank you very much for your questions. I would like to thank my entire team at Boa Safra. 2024 was very difficult in the entire sector, as a matter of fact. So we were really sad with the results. And of course, they were far away from what we expected to have had. And that is so frustrating principally considering our dedication and our work. But anyhow, we are a company that deals with seeds, we plant seeds. Even in 2024, such a difficult year, we planted our seeds, we are working on our strategic plan and we always look ahead. We always think about 5 years ahead of us. We're always doing and making our adjustments. Of course, there are certain circumstances that force us to go left or right, but we keep adjusting, and we want to make sure that despite of the difficulties of this past year, we're getting even stronger. We are a much better company now. We have the best people in our teams so that we're going to have a normal year, and we're getting back to our normality and to deliver and to meet all our expectations. And I thank you all investors that even during moments of volatility and difficulties, thank you for sticking to us and believing that our work is well done. We do not focus on the result, but of course, that the result is important for us in the future, what we can do today, and we're going to be reaping the results further down the line. Thank you very much for believing in us. And I'm sure that 2025 will be excellent. Agribusiness starts just after carnival. So carnival is done. So we want to be sharing all the positiveness that we have and the entire team will be more than able and available to all of you.

This conference now ends. We thank you for your participation. You may now disconnect. Have a good afternoon. [Statements in English on this transcript were spoken by an interpreter present on the live call.]