Boa Safra Sementes S.A. ($SOJA3)

Good afternoon, ladies and gentlemen, and welcome to our conference [indiscernible] Fourth Quarter 2025. The recording is available in our ri.boasafrasementes.com.br. Presentation can also be downloaded. After this presentation, we'll start our Q&A. We will provide some instructions timely. Any statement or prospective declarations are based on the information available at this point in time to the company. Information and the declaration and the statements can involve several circumstances that may or may not occur and depend on them. Please take into consideration several variables that may somehow interfere in those respective statements. Marino Colpo, our CEO; and Felipe Marques, CFO and Investor Relations team will be present. And now I would like to pass the floor to Felipe Marques. Please go ahead.

Good afternoon, ladies and gentlemen, and it is a pleasure to be here to talk about our 4Q '25 results, I'm going to pass the mic to Marina, and we will conduct the presentation from now on.

Good afternoon. It is a great pleasure to be here sharing this hour with investors to disclose our results of the fourth quarter 2025. Let me go now to Page 4. I would like to show you a bit of our history. We are celebrating 5 years. 5 years of being on the list. April should be the fifth year of our company to be listed on the stock. Felipe will be talking about our CRA or CRA, the 2 emissions of CRA, which puts us in a very comfortable situation with regards to our debt. And of course, along with that, I'd like to highlight to the fact of -- we had the acquisition of SPS, which is our third company. That company was part of our move in 2025 at the beginning of the year, and there was a good result in growth. In addition to that, our expansion to the south of the country, which contributed to our market share. I can say that today, we are the only seed company or at least the first seed company to be working in the entire territory. 100% of the country is counting on our presence. We are operating in our whole territory. We're going to be talking about what happened in 2025 to [indiscernible], that unit actually with [indiscernible], that was actually something that we started with the best receipts. Now please let me invite you to take a look at Page 6. I see this is a great highlight to us and the company. It's part of our good news for this year. Actually, those are the most important pieces of news. So in our company, we've been working hard on meeting an increasing number of companies, meeting the needs of an increasing number of companies and 970 visits paid a month. That was last year, 996 points of sales. So that was where our seats were. This is an important mile marker, principally if you compare to what we had in 2021. 2021 was marked by the top 10 sellers, more than 40% of our sales would be concentrated. Today, we have 12% of concentrated sales in the 10 top companies. So basically, we are spread out. And that, of course, entails some cost with SMA. But we consider, nevertheless, that is very important to control the bad debt. And then we are no longer focusing or concentrating our assets in just a small set of companies. And with regards to our market share, there was an increase there of a gain of 2 PPs that great growth was basically on the third and ranking third and fourth as in 1 year. So our growth was equivalent to those 2 PPs. So basically, that was supported by the evolution of the regions. This when we compare to what we had in 2024, jumping from 8% to 10%. Now with regards to our production capacity, basically keeping the same starting 2026 with the same capacity of 2025, but we're considering the same productive area with an extra 30,000 hectares. It's too soon for us to reach that production capacity. So this is one of our challenges. Yes, there is some idle capacity, but this is one of the strategies for us to improve our results to decrease our idle capacity in 2026. This is why we are working with more land. So contracting the area has increased without changing our production capacity. Now our idea is to reach 100% use or use our plant 100% of its capacity. Now you can see here on the bottom of the slide, the sale results, 215,000 Bags. So this is our record. We have never sold so much throughout our history. Well, TSI, there was not -- TSI was not exactly as we expected because there was a crisis in the agro business. our growers actually ended up using less technology when it comes to seeds. And that was something that really hindered our results when we talk about TSI. 215 and 69 of treated seeds. Let me talk a bit about our presence. This is a company present in all regions of the country. Highlights to the new units, the additions that we had in 2025, Camarana. These are 2 soya or soybean units and also Penapolis. Penapolis, forage. This is part of our business. SPS is located in Sao Paulo, and this is part of our business. Yesterday, we entered an agreement with Syngenta through Bestway, our subsidiary. 66% of their capital belongs to us, and that is in. We are twice holding our capacity with Bestway. That is for corn seeds. And with this lease using our plant in for corn, we envision a possibility of growing a lot, principally in terms of growing with corn seeds. As a matter of fact, for the last 2 years, that was kind of sluggish. That was -- the market was very sluggish and now that changed. The market is growing, and we wish that this will be a very good result for us to recover what we wanted to have. So basically, these are 2 years since the follow on, and the idea was to enter new agreements with international companies for us to grow on our portfolio and producing corn and, of course, entering in other type of alliances and things were kind of going slowly, but this is now marking a new era to Boa Safra. And we're going to be established or we are just going to be among the major corn producers in the country. Now talking about our backlog. This is the way we operate. Our backlog is very strong. It is always growing in the first and the second quarter. Our order backlog is something that start reaping results on the third and the fourth quarters. Fourth quarter is more significant. Out of those 150 million, those are soy to be invoiced in this period of time. And the results, the figures will be very similar to what we had last year. 120 million is the highlights considering other crops that we are going to be reaping or invoicing in the first quarter of 2026. Let us move now and talk about other crops. We are growing strongly in other crops with other crops. Of course, not talking about BRL 300 million out of the BRL 2 billion, but there was a growth of 81% 88%, as a matter of fact, with new crops. And this is the composition of our company. As a matter of fact, we are kind of twice holding every year, roughly speaking. We believe that until 2026, we will remain doing or operating in the same way or growing the same -- at the same pace. And of course, those new crops are increasingly more relevant in our business. Page 12 will be in the hands of Felipe. He's going to be talking about our results in numbers.

Thank you, Marino. Now catching back with you guys. But of course, we're talking about annual results. We move away from seasonal results and variations and all the fluctuation from quarter-to-quarter. But let me talk to you about the fourth quarter 2025, talking about our sales. As a matter of fact, that was a stronger quarter, not necessarily in terms of results. At the end of the day, considering the fact that you already heard about the droughts that we had and the climate fluctuations and even with those record high that we had from year to the next year in terms of soya seeds, we expect to have more, but there was this drought that we had. And as you know, the sale of grains has very low margins that affected that in the end, the results. That drop in the gross profit is basically a result of the sales of grains and this lower profitability. of BRL 62 million. And as a consequence, that affects our EBITDA. You can see that it is a little bit more timid, BRL 58 million, which is equivalent to adjusted EBITDA margin of 55%. That impacts the punctual result. But if you consider the entire year of the company, you still see that we were living a very difficult year. 2025 was difficult, and we don't see many who grew from year-to-year. So this is the major growth in volume of soya seeds. This is in our entire history in such a difficult year as 2025 was. Market share, 10% that is the scale, something that we were really pursuing. And I believe that now as we start 2026 with those 10% market share, considering the difficulties that we had in the year to get a good grip of price and profitability. And with the difficulties, we still are able to get to the end with BRL 270 million with a margin of 10% with the EBITDA of BRL 154 million or 6%. So that is something that, as a matter of fact, we expected to get a more positive or greater results. But because of what we had in December, we can see clearly that in 2025, with this new optimization of the company will basically reflect in 2026. BRL 101 million for our net income and adjusted net income of BRL 20 million, 1% is actually what we have, and it was difficult. 2025 was even negative to certain companies. And nevertheless, despite all the difficulties, we were able to grow having lower profitability, but still above the average and which proves our sturdiness and our strength. We see that we, in history, have BRL 2.9 billion as operating revenue. Our net profit and our adjusted EBITDA, BRL 154 million and our net profit BRL 101 million and our CapEx is really -- we are not increasing our installed capacity. We are starting 2026 with an operational flexibility. So moving away from the investments of more than BRL 100 million or BRL 200 million, BRL 75 million. What we see is that this is a way of protecting our cash in a market that has a lot of profitability restrictions. And then 2026 will be marked by our search and quest for efficiency with our market share, we are comfortable to play and grow with the new structures with our commercial team, with our installed capacity with the new units that made us strong to grow as a company. And this is how we really look forward to our diversification. Our debt profile, this is something that really we take pride of with our capital structure. I believe that we are a company that has the best capital structure in the agribusiness. IPO 2021 and then 2 years ago, a follow-on. We issued 2 CRAs in addition to Fiagro. Our profile is very good. Our debt profile is with BRL 6.8 just BRL 62 million to be paid. So 95% is long term. Most of our debt is CDI plus 1%, a little bit in IPCA prefixed with subsidized taxes rates. And of course, with less financial cost. As a matter of fact, most of our debt, we're not even considering the swaps for the percentage of CDI. So we can keep up with any reduction that may occur with the Central Bank decisions and will be good results. With regards to accounts receivable, this is something that we really like to highlight here the dedication and at the company of all of us. Our growth, the revenue grew with soybean seeds. So that was all along with the increase on the seed sales. You can see that we have a PDD of BRL 13 million. Out of that, this is net PDD. Of course, we managed to have good results. And as a matter of fact, our provision for expected losses is BRL 16 million with 1.7% of the receivables of our portfolio is proves that our portfolio is very healthy if you compare it to the rest of the sector. We are not just a simple supplier. We as a matter of fact, are the major supplier in all categories, soy and seeds and other seeds as well. And that is a name that was created -- we have an importance to our clients. Of course, at the same time, we have to make sure that we will be receiving. We have to consider all the collateral structures for us to really have a good composition principally if you consider a very challenging sector. So with less subsidies to the agriculture. So that makes us in this situation to consider the credit as a very relevant aspect for us to grow as a company. Nevertheless, we have a very sturdy portfolio. We are working on this type of profile with warranties, with endorsement and with this portfolio that we have to -- we are expected to receive in 2026. When we have a look at our adjusted net debt of the company, talking about the financial health of the company, we had this as a result and the effects from the effects of Fiagro, our current liquidity is very high. Now when we check out the more conservative situation, if you analyze the entire year of 2025, we had financial results of BRL 75 million. When we see our results in the end of December, we see the results. Of course, this is a seasonal company. If you look at the entire year, you can understand the picture. But if you just think about BRL 75 million as a liquid result and as what we had in December, so it is about 19%, 19% that you had as cost of debt. This is about what we had throughout 2025 with a net debt of this amount of BRL 381 million. So that is really something that we keep repeating, and we always repeat to our investors. We have to talk about the net result that shows the entire year, which is what the difficult year that we had, and you have to see the picture of the entire year. That was typical. 2025 was a typical. But still, we see that our EBITDA as a company, we can see by the EBITDA that we are able to settle our financial results, and it is very comfortable to us. And this puts us as Safra in a very comfortable position. And that is very rare in the agri business. Our liquidity as a company puts us in a very comfortable situation, which makes us different in this scenario. We're starting 2026. There are so many who don't have liquidity. And that puts us in a level that made us really sure that 5 years of building this company were worth it. It sounded that everybody had a solid situation. But now we are proving that we have a great competitive advantage, and it is a good leverage to create solidity of a company that is producing seeds and puts us in a new level to start 2026. Now let me talk about the cash flow of the company. This is something that is very important. Even having such growth with low profitability because of the weather fluctuations, it's very similar to what we had in 2025, and BRL 60 million for cash and BRL 90 million with more needs for credit in the market and a year that was marked by those difficulties, we had a growth of almost 30%, which was aligned with the growth of our revenues, principally when you see the revenue from seeds. And of course, that consumes working capital. Now starting 2026 and having the same installed capacity, the working capital demand that is based on -- because of the growth that we had, there is less demand for working capital for 2026. And with our strategies, according to what Mario just said, of having more area planted, we managed to optimize our work. Our focus this year is to change installed capacity into sales. And this is how we produce results in the company without making much of an investment or great investments. With Syngenta, we're adding something that as a matter of fact, it was supposed to be mobilized capital, but now we are showing that we have discipline, principally in terms of capital assignment, allocation of capital. And that shows us in a very good situation to generate working capital for 2026. These are the main aspects that I wanted to share with you. Now I think now Marino, we should go to our Q&A. Thank you for your attention.

[Operator Instructions] The first question comes from Gustavo from Itau BBA.

There are 2 things that I would like to talk to you guys. First, expectations, profitability for 2026. I understand on your report, in your gains for the year. So you already mentioned something. But because of the rentability, the profitability of the grower is a little bit affected, but you're talking about efficiency and this your path. We've been talking about that for the last months. But I would like to get from you a little bit of a balance of both variables. What can we expect in terms of margin for 2026? What can we expect? Do you think you're going to get back to our history that we had? So anything that you could possibly share during this discussion about profitability would be great. Now the second question, just hitting again on the diversification of your clients. That is clear. The benefits that you have when you have a wider different types of clients to decrease risk. But that also comes with the cost to reaching to those different clients. I would like to hear from you, can you quantify what we could expect in terms of logistics and costs to be able to meet this diversified public? And what is normal in this new dynamic since you have a much wider base?

Thank you very much. Thank you, Gustavo. Great question. So the first question that you just asked, our efficiency, the project and the difficulties that we have, you're right. it looks like it is a difficult year, and we still have seeds. There's a leftover of seeds and many companies -- many seed companies are present in the market. This is something that is negative. Well, I see it's very similar to the previous year. It's not that I think that it is going to be more difficult than the year before, even because we've been talking to other seeders and we're not depending on the reduction of volumes. Perhaps it will be easier. Of course, caters are with credit issues, there's not much cash in the system. I still think that it is going to be a difficult year. Now the good side of this all is that we've been doing our homework to reduce cost, to increase efficiency, to increase scale, to check out our mistakes to compare what we have around. We grew so fast. We moved from IPO 3 units now today, corn and other crops in distribution centers, we're talking about 18 units. And as a matter of fact, this growing so fast in both sales and also operational capacity also brings along some inefficiency that has been identified. So we are just robust. We're gaining efficiency, either in cost, SG&A and also in terms of productive capacity, why this plant is producing less? So I think we're doing a good job. And for sure, we're going to have results reflecting in the margins. Now for the second point, we opened to the possibility of different clients. We were more seducive -- or we were seductive to the clients last year. Now this change, the strategy now is not to open the new clients, but to sell back to those new clients. And we think that we have to be -- we don't have to be so aggressive with these new clients for us to renew our partnership. So that was the idea. We would be more aggressive in terms of discounts. So to be able to sell more this year without all those levels of discounts that we have had in the past. So those are the 2 things that I would like to highlight. Let me tell you, we were really focused on growing. Now we kind of changed that. We said, let us work on the margins. That is our goal this year, 100% focused on improving our margins. And we really trust that this is going to be delivered with a different margin. But we still think that it was very important to have that growth several in the sector -- several players in the sector allowed us to have those 2 points to increase this share. So we actually surf the wave as a strategy. The last M&A in the sector, we we actually -- something that was paid in a merger acquisition last year, we actually grew more than what they paid for the M&A. So we -- of course, we kind of open our hands in terms of results to be able to grow those percentages in capacity. It is almost like an M&A greenfield M&A to the company. So this is how we envision that. For 2026, we will be working on regaining our margins. And those things that you mentioned are very good.

The next question comes from Henrique from Bradesco.

Just a follow-up on the previous question, thinking about the SG&A, which was something that you just made a comment, it was important in '25. Do you think that there will be a drop -- a nominal drop with everything that is happening that would really help us to understand a little bit of what we have in 2026. Now I would like to just mention or ask why is not does it make sense for 2026 and not to grow? Of course, considering the market, this decision makes sense. But as you mentioned, there's a lot of offer. So I don't think that the sectorial conditions are going to improve in 2025 was, as you mentioned, a difficult year for you to grow because of the channels, because of the pricing and the working capital in such a short period of time and perhaps shrinking in scale would help to find a balance in the market and also to digest a little bit more and so sell less, but to find a balance. So why not to do that this year then?

Thank you, Henrique. So let me just touch the SG&A. That's not what we expect to reduce in absolute figures. Now if you analyze the last few years, there was a very steep index. SG&A for this year should grow along with the cost. So considering the respective components, grow what it is inflation, grow in what we have considering the restructuring for 2026, we would grow along with the inflation based on what we wrapped up for 2025. As Marino mentioned, we have efficiency in soya seeds. Our focus is to capture more sales conversion regarding our installed capacity and all the businesses since the company is growing at a good pace. When you see our backlog order -- order backlog, more than BRL 100 million for 2026. This is what we have without even talking about soya seeds for the next crop that is not even reported. So in terms of percentages, considering those initiatives that we have in the company, SG&A should really have a weight or have less weight in our revenue. So that goes along with the dilution or our capacity of diluting costs and expenditures. Now in the second part of your question, perhaps Marino wants to complement what I say. But it is important to understand what we did in terms of opening the market about the market share, 10% and then move back. There are several costs, several expenditures. And sometimes it is difficult to reduce those and to have a positive margin. So with the same installed capacity and flowing good, everything that we did in 2025, opening new markets, new clients, concrete solutions, delivering high-quality seeds with low or a few complaints, and that is a fantastic seed quality and just establishing our name. Boa Safra is in a benign situation. This is an environment that is positive, principally when you consider the seed sector because of the greater offer. So this is something that we really based on everything that we did in 2025. And this is why we go really attuned, and we understand that we would be able to capture more value on this path. Just to complement what we said, we are growing -- we're growing our sales and our production, too. 215 sold even if compared to what we sold last year, that is a lot in terms of sales. And our margin was affected -- is affected when we have leftovers. And we -- there was a lot of leftovers. Nevertheless, there was a great opportunity to add very many good people to the board, principally in the commercial team. All those presences, people were coming and knocking at our door. Now today, we count on a very sturdy commercial team. 2026 is starting with a great team. We can keep our production flat, 180. And the great goal to us is to 215 in sales, so decrease our idle capacity and that would be very positive. Now reducing scale or do less. So we're still keeping up with the 280 in our capacity, considering the adjustments that we had in our plants. So our goal now is to have a CapEx that is really low for 2026. In the next few years, we would be able to grow a bit more without CapEx. And that is for soya. And for the other crops, we are still kind of doing something different. We see a very positive market. And we have good winds blowing and principally with the operation with Syngenta.

Now the next question comes from Pedro Fonseca, XP.

The first thing that I would like to ask you is about this portfolio review or revision. To our understanding, in addition to the difficulties with quality and what Marino said, so the impression that we have is that there was a mismatch between the effective demand from the market and the portfolio that you set for the company. The question is, does it really make sense? Now the second thing is, can you just brush up about a little bit -- talk about this portfolio revision. So what is -- are you decreasing the? Is this something more related to all the details? Any information would be more than welcome. I know that it is still too early to talk about quality, but -- there was a lot of rain in some of the regions, and we know that this is a difficult point, right, because when we talk about seed quality. So my question is, what is the company doing to overcome difficulties that we may have in terms of eventual seed quality because of the excessive rain.

So thank you very much for your question. Now of course, I invite my colleague to make comments if he wants to. Pedro, true, we were growing fast. But there were 2 moments our growth and of course, the biotechnology that was changing. So things were changing. So we were growing. We were kind of stepping unknown terrain. And at the same time, we were changing technologies. So the portfolio was a little bit lighter. So we would have to bring products from the previous technology that were good at sales or good for selling and also the novelties, things that were unknown. 102 in our portfolio has a lot. The problem when you're talking about the leftovers is there are 3 things: the drop in quality. We had to just discharge. We had market, but we didn't have quality. So we had to discharge. It was an error in the portfolio. We produced more than what the market would absorb or that we wouldn't have -- we wouldn't be able to sell. And there was those sales as well as a matter of fact, this is a product that was identified as a good for the market, but somehow the sales team kind of had a hiccup. And our science project is focused on all details. Our portfolio review or revision has some goals. We decreased -- we removed 30. We are now to 65. This is what we want to have, 65 materials, it says materials, 65 materials. We identify things that are a little bit more difficult to sell, and we're shrinking our portfolio. And we believe that those are moves that will help us manage our over -- or leftover, and that is in our efficiency project. Now we -- you talked about rains in -- during our crop season or the harvesting, during the harvesting time. So we think that there will be a bit of a difficulty that it will be difficult to have good quality, yes, but we are just checking today in a more constructive way. We are checking and trying to understand what is happening. And there are 2 reasons. First, we're talking about a market that had a lot of seeds. There was a lot of offer. Rainy months, principally in Mato Grosso. As a matter of fact, it's a lot of rain throughout the entire country. There will be a decrease in the offer of seeds. So the market won't be so difficult in terms of sales. So there would be more possibilities. And even pricing would be affected also. So it will be a little bit more tight when it comes to seeds. Now the second thing is something that gives us hope and we prepare for that is that we had a lot of discussion when we moved from 280 and then we increased our contracted area, and we are still having difficulties to produce 280 last year, either because of quality or because we wanted to deliver 280, but actually, we delivered 215 for sales, either quality or no sale or portfolio, we try to organize those 3 variables, improve our commercial teams and to us for us to get close to what we had as capacity, 280. And I think that we did right. Now with this excessive rain and the trend of having less seeds, I'm not saying that this the rain is just killing us. But I think that it is more -- there is more reduction in number of seeders. And of course, with the amount of rains, it is even more difficult. So this is all contributing to a better scenario to the company.

The next question comes from Gabriel Barra of Citi.

There are 2 questions. You talked about the corn, and you see it in a good and positive way. Now most recently, you have the agreement with Syngenta, lease. Now I don't know if you can talk about the rationale of this lease with Syngenta. And let us know about the future in terms of growth because you kind of twice in the capacity. And this is a very relevant move. Please, can you just elaborate more on it? The second thing, Felipe, Marino talked about liquidity and your cash position, your balance this sector is really suffering difficult moments considering the market share, having to look inwards and not outwards. How would you be able to use this liquidity in that practice? How can you use the market at this moment? Do you think you're going to be able to get more market share? How can you use the balance and the liquidity for your own benefit? Those are my questions.

Thank you, Gabriel. You have the information with Bestway last year. less than BRL 50 million, right, of invoicing. Now that way 2026, out of those backlog, you see that more than 100,000 comes from battery as I'm afraid there is not even. There's nothing from our partnership. Now you twice the capacity. This is important to understand that from now on, the magnitude changing. Twice in the capacity. What is a new level with Bestway. You know that Best way is mobilized capital, higher margins because they are a service provider. Now we have this operation. We are leveraging in a more relevant way. Cost of goods becomes more attractive because that is a company, a service company. Now we are twice folding our capacity in -- without mobilizing capital shows how much we manage to create potentials. You can get a flavor of how important Bestway is in this new game in our business here with Boa Safra. Liquidity, Marino could talk about more strategic aspects. But anyhow, the liquidity that we have and the balance that we have, Gabriel, gives us a good situation in our daily work. since there is so much doubt in the market and the possibility of having clients paying us and we delivering their seeds later, so we don't have interferences halfway through, gives us a more comfortable situation. And so there is an immediate value, which creates competitiveness in the market that is the way it is. This is why our capacity of taking a step back at the end of the day would be a waste of time. It would be a shame -- stepping back would be really a shame. Let me just ask Marino, can you just talk about the strategic aspects of us, how we see the liquidity?

Well, as a matter of fact, Gabriel, even mentioning in the Bestway, our corn market, if you analyze the history and even corn oil was always -- has always been a high-margin market. The business with Bestway was in a very difficult moment for corn, and we managed to do well, acquisitions, investments with Bestway, of course, we didn't expect the market to remain bad for 2 years. Actually, we went to the bottom of the well down there, and we -- the purchase was in a bad moment, but that bad moment remained for 2 years, let us be honest. However, now the market -- the corn market is stepping up. Of course, there is a more delicate situation in the soya market. This is something that corn happened to corn in the past. So we kind of depleted the stocks and there were no more stocks in the sector, and this has been 2 years without growing. Now it is kind of catching back. And of course, there is a lot of demand for corn seeds and our capacity in Brazil is adjusted. And you can see that it will be an excellent future to corn. Along with that, the business entered with Syngenta, which we believe to be excellent. So something that we signed, and it is very relevant to Boa Safra and very relevant to Bestway. But now we are twice holding with our size in a moment that -- in which the sector is stepping up. We believe that it is going to be very good for Bestway. From my understanding, Gabriel, I would like to do this, the same thing for soya, use liquidity and think, well, you have to just hit it on the nail at the moment the soya starts to catch back, grow back. So maybe the people here are looking at me say, listen, you have to really hit the nail on the head, really when the things are changing direction and going up. And despite of the fact that we believe that we have all cards and all possibilities to grow more than the previous year. So now the moment of changing -- the flipping the situation for soya is this year. Well, this is how I think. Yes, there will be less seed in the market. I think the rain will help us, and there is the result. This is our focus. We are much more focused on results than growth, and we don't have such a pressure that we had in the past of replacing the major platforms that were our major clients with our new distribution. So the company is present now throughout the territory. We are present everywhere. We could just kind of bring some release of what we have been doing directly with the producers. So we are gaining market share, and so there's less pressure. We have a much clearer path for us to improve. Of course, the year will be better than the previous year. The situation is not as good, but it is much better than the year before. And principally considering the second half of the year, so we can see that we are really having 2 things that are very positive, the macro situation and our strategy with Syngenta.

The next question comes from Guilherme Gutila from BTG Pactual.

This is just a follow-up from our side. We want to understand a little bit more your margin. Yes, I know you said repeatedly what your margins -- let me just put major clients with discounts, hiring teams from other companies where you saw there were possibilities and opportunities in the market, but there are certain -- there is something that is not clear to us is which components affected your margins? Do you think that those components were structural? We understand -- we want to understand what is the new level of profitability margins that we can expect from the company from now on? Can you help us understand that aspect or those points?

Well, let me mention 2 things that perhaps are not clear in our presentation. The fourth quarter was really marked by this desperation, having too many -- too much of seeds. The production was very high, price was very low. So we were trying to monetize as grains. In some cases, we even understood why that was happening in RJ. We wanted to really produce cash no matter how. This is something that really spoiled it a lot. If you analyze our backlog order, what we invoice as seed is much higher than our portfolio. We were not able to capture that additional sale because those prices were below cost. It wouldn't make sense. So we didn't take part on that. We didn't manage to capture those sales. And that, of course, hindered our sales as a whole. That impact on the top line, and that is something that was perceived in the fourth quarter. In addition to that, we had a loss in quality during this year because of the drought. There were many days. A seed is alive. There was a good -- with good vigor, good germination. But in the fourth quarter, there was a drop in quality. And that is something that we do not play with. We had to discharge those volumes as beans as grains. Our installed capacity out of what we had, we sold 23%. That was -- but actually, this is something that we lost, and we sold that as a loss, which is -- brings us to the situation. Yes, we were prepared to sell more in the end. Now those are factors that really -- there were actually 2 factors that happened simultaneously on this fourth quarter and that affected our profitability on the fourth quarter. And that is a punctual thing. Marino already mentioned. This is the first time in history that the higher fields were superior than our installed capacity. We never had so many fields compared to the installed capacity, but then we had less competition, everybody is coming with less and of course, less offer, less cash for the operations. So we come to those 2 events that we had last year, and those seem to be mitigated now in 2026. Marino, what do you say? I agree with you. Thank you very much for your question. I agree. This is a difficult situation. The scenario is difficult. The loss of seeds, I'm talking about my region. Seeders had cash issues and some entered into feels that are not advisable, but we still have a great team. We still have new clients. We're still growing and increasing our sales. That improvement will really show off along 2026.

Our Q&A ends now. I would like to pass the floor now to Marino Colpo to wrap our event.

I'd like to thank you all for your attendance. It is an honor, and it is a great pleasure to be here with you, investors, to disclose our results of the fourth quarter 2025. Thank you very much. We wish you an excellent year to all.

Boa Safra conference is now to end. Thank you very much for your participation.