SLC Agricola gets BRL59.7M from BTG funds

SLC Agricola gets BRL59.7M from BTG funds

SLC Agrícola (B3: SLCE3) reported a 19% year-on-year increase in net profit to R$636 million for the third quarter of 2025, driven by a 27% revenue surge to R$6.28 billion. Strong soybean and corn sales offset declining cotton prices, while adjusted EBITDA rose 42% to R$2.03 billion, with margins expanding to 32.3%, a group record.

In early November, the company finalized a R$1.03 billion partnership with BTG Pactual investment funds to acquire farmland, develop irrigation systems, and build infrastructure. Under the agreement, SLC holds a 51% stake, with BTG's funds owning 49%. The collaboration includes 21,400 hectares at Bahia's Paladino farm and plans to expand irrigation to 13,200 hectares at the Piratini unit by 2026. Harvest proceeds will be shared, with investors receiving approximately 19% of the output.

SLC began the 2025/26 crop year with 835,700 hectares planted, a 13.6% increase from the prior season, following the consolidation of Sierentz Agro Brasil Ltda. Free cash flow turned positive at R$567 million in the quarter, though year-to-date cash flow remains negative at R$1.5 billion due to acquisitions and land purchases. Net leverage stood at 2.34x EBITDA, with R$6.2 billion in net debt, 69% of which is long term.

Crop performance varied: corn unit gross profit surged 282%, soy profits rose 64%, and cattle operations increased 173%. Cotton, however, saw a 26% decline in gross profit per ton due to lower prices and higher costs.