Fertilizantes Heringer S.A. ($FHER3)

[Audio Gap] the company's management as well as on information currently available. Forward-looking statements may involve risks, uncertainties as they refer to future events, and therefore, depend on circumstances that may or may not occur. Investors, analysts and generalists should understand that general economic conditions, industry conditions and other operating factors may affect the company's future performance and may lead to results that differ materially from those expressed in such forward-looking statements. Now I would like to give the floor to Mr. [indiscernible], who will kind the presentation. Mr. [indiscernible], please go ahead.

Good morning, everyone. I'd like to start talking about volumes delivered by the company in Q1 '26. In the first quarter '26, we posted a significant reduction in total volume delivered from 350,000 to 202,000 tons, which means a drop of 43.7% compared to first quarter '25. This performance was primarily impacted by the harbanation of plants throughout 2025, as communicated through material facts to the market, in addition to some specific factors in some crops. In terms of mix, corn, castor [indiscernible] share of 35%, but with a reduction in absolute volume from 124,000 to 70,000 tonnes. In addition to [indiscernible], we saw delays in purchases by some growers in the regions where we operate. Coffee gained relevance in the mix increasing from 31% to 36% share, still with a pay reduction of volume from 112,000 to 73,000 tonnes. This movement reflects the combination of higher fertilizer prices and reduced commodity prices leading roles to reduce fertilization. Sugarcane posted a proportional decline from 9% to 5%, and 33,000 tonnes dropping to [ 10,000 ] tonnes. Soybean had a slight increase of share from 5% to 6% despite a volume reduction from 9,000 to 12,000 tonnes. Lastly, the group of other crops declined from 20% to 18%, with volume dropping from 70,000 to 37,000 tonnes. As regards to the mix of products, we see a more marked drop in the line of conventional products, which fell from 305,000 to 154,000 tonnes, a drop close to 50%. On the other hand, the premium segment showed a more moderate decline of 53,000 to 48,000 tonnes a drop below 10%. This behavior shows a gradual shift in consumption profile with a greater focus on higher added value products in line with the company's strategy to strengthen the premium portfolio. Next. Now moving to the results of the quarter, reinforcing what we saw before, the reduction 43% [indiscernible] our financial performance. Net revenue, BRL 523 million, a drop of 42% compared to the first quarter of 2025, reflecting a lower volume sold. Gross result remained positive at BRL 3.7 million, however, with a 92% reduction compared to the BRL 46 million in the previous quarter, leading the margin from 51% to 0.7%. EBITDA of a negative in BRL 4.1 million compared to a positive EBITDA of BRL 3.5 million in first quarter '25, with EBITDA margin dropping from a positive 0.4% to a negative 0.8%. Net income was positive at BRL 14.6 million, but around 76% lower year-on-year when it was BRL 59.6 million benefiting me from the financial results. As regards financial results, we [indiscernible] effect of BRL 156.6 million, resulting from a foreign exchange variation in Q1 26, reflecting a 5.1% appreciation of the BRL vis-a-vis the dollar in the period. Comparing with Q1 '25, this result was 46.3% lower when it has reached BRL 291.5 million. This variation is explained mainly by a lower base of foreign exchange exposure, especially in suppliers, in addition to more intense depreciation of the BRL in '25, which was 7.3%. As regards interest and other financial expenses, had an impact of BRL 75.3 million of income tax in net [indiscernible], and we had this net revenue of BRL 14.6 million. [indiscernible] We ended Q1 '26 with cash and cash availabilities or cash equivalents of BRL 149.3 million, up BRL 48.7 million in the quarter. Among the main variation factors I highlighted, the results before income tax and [indiscernible]. Negative of BRL 55.8 million noncash expenses, BRL 62 million mainly due to interest rates and unrealized foreign exchange, reduction in assets of BRL 290.3 million with the highlight going to inventories, reduction of liabilities by BRL 222.8 million, mainly due to suppliers and early purchases by clients and net investments of BRL 3.9 million. And cash disbursement of BRL 32.5 million related to funding activities, mainly for the operations with a total number of BRL 48.7 million. As regards our market expectations. I turn the floor to Marcelo Ferry.

Hello. Talking a little about the price of raw materials since March 2025, but we saw an accommodation of prices compared to the end of the year, mainly for nitrogen and postpaid-based products, but a different scenario in the first quarter of 2026 because we saw the closing of the Strait of Hormuz Impacting mainly urea and MAP, driving an increase in prices. When we get the national production of rain blended area and consumption of fertilizers, so we saw planted area increasing. However, looking at the productivity and fertilizer consumption scenario, it remained rather stable in the 2025/2026 crop year compared to 2024/'25.

[Operator Instructions] If there are no questions, then Fertilizantes Heringer's earnings conference call is now closed. Thank you very much. Have a good day.