# BrazilAgro Reports Significant Increase in Profit and Ebitda
*Rewritten Additional Piece*
## Introduction
In a recent report, BrazilAgro (AGRO3) announced remarkable financial results for the fourth quarter of the 2022/23 harvest. The company, which primarily focuses on the purchase and sale of rural properties and the production of grains, fibers, and bioenergy, recorded a net profit of R$242.7 million during this period. This impressive figure is almost eight times higher than the net profit generated in the same period of the previous 2021/22 cycle. Additionally, BrazilAgro’s adjusted profit before interest, taxes, depreciation, and amortization (Ebitda) grew from R$66.9 million to R$365.2 million, indicating a substantial increase in financial performance [^1^].
## Factors Influencing Profit Growth
The significant growth in BrazilAgro’s profit and Ebitda can be attributed directly to the successful sales of two parks for R$415 million, which had not occurred in the corresponding period of the previous year. As a result, the company experienced substantial net real estate income [^1^]. However, the company did face challenges in its operational area, with net income declining by 27% to R$257.7 million. Despite increased volumes of agricultural products traded, the company was negatively impacted by falling soybean and corn prices. Consequently, adjusted operating Ebitda decreased by 45%, amounting to R$36.7 million, and net operating loss reached R$85.9 million [^1^].
## Annual Performance Highlights
For the entire 2022/23 financial year, BrazilAgro reported a net profit of R$268.5 million, representing a 48% decrease compared to the previous harvest. The total adjusted Ebitda decreased by 23% to R$533.7 million, and the consolidated net income fell by 9% to R$1,349 million. The company faced various challenges during this period, including a sharp increase in input prices, particularly fertilizers due to the Russian invasion of Ukraine. Additionally, low soybean and corn prices further affected sales revenue. Despite these obstacles, BrazilAgro maintained a positive trajectory of growth, notably recording a 41% increase in net real estate income throughout the 2022/23 cycle [^1^].
## Outlook and Future Prospects
BrazilAgro operates across Brazil, Paraguay, and Bolivia, and as of June 30, its properties were valued at R$3.6 billion. The company possesses almost 275 thousand hectares of land, both owned and leased. Given its impressive financial performance, BrazilAgro’s board of directors approved the distribution of dividends amounting to R$320 million. Shareholders are expected to approve this decision at a meeting scheduled for October 24, with the payment to be made in the first half of November. The proposed dividends are in addition to the approximately R$1 billion already distributed by the company over the past five years [^1^].
## Conclusion
BrazilAgro’s financial report for the fourth quarter of the 2022/23 harvest showcases remarkable growth in both profit and Ebitda. The successful sales of real estate properties significantly contributed to the company’s net profit, which was almost eight times higher than the previous cycle. However, challenges in the operational area, including falling soybean and corn prices, impacted net income and operating Ebitda. Despite these challenges, BrazilAgro continues to thrive and plans to distribute substantial dividends to its shareholders. With its strategic operations in Brazil, Paraguay, and Bolivia, BrazilAgro is well-positioned for future success [^1^].
## Sources
[^1^]: [Lucro líquido da BrasilAgro (AGRO3) cresce quase oito vezes no quarto trimestre da safra 2022/23](https://www.infomoney.com.br/mercados/lucro-liquido-da-brasilagro-agro3-cresce-quase-oito-vezes-no-quarto-trimestre-da-safra-2022-23/)
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BrazilAgro (AGRO3), whose focus is on the purchase and sale of rural properties and the production of grains, fibers and bioenergy, reported that it closed the fourth quarter of the 2022/23 harvest, in June, with a net profit of R$ 242.7 million . almost eight times more than in the same period of the 2021/22 cycle (31.1 million reais).
In the same comparison, the adjusted profit before interest, taxes, depreciation and amortization (Ebitda) of the company grew from R$ 66.9 million to R$ 365.2 million, and total net income increased by 92%, for 673.5 million.
The strong growth in profit and Ebitda was directly influenced by the sales of areas of two parks, for R$ 415 million. From April to June of last year there was no business of this type and, therefore, there was no real estate net income.
In the operational area, net income fell 27% between the fourth quarter, to R$ 257.7 million. Although the volumes of agricultural products mobilized have increased, the fall in the prices of soybeans and corn were decisive for the retraction. Thus, the adjusted operating Ebitda decreased by 45%, to R$ 36.7 million, and there was a net operating loss of R$ 85.9 million.
With the results of the fourth quarter, BrasilAgro closed the 2022/23 financial year with a net profit of R$ 268.5 million, 48% less than the previous harvest.
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Total adjusted Ebitda registered a decrease of 23%, to R$ 533.7 million, and consolidated net income was 9% lower (R$ 1,349 million). With the sharp increase in input prices, deepened by the increase in fertilizers after the Russian invasion of Ukraine, the 2022/23 grain and fiber harvest was marked by record costs, at the same time as falling prices of soybeans and corn in the first half of this year affected sales revenue.
According to information released by the company, net real estate income registered a 41% increase in the 2022/23 cycle as a whole, up to R$ 445.4 million, while net operating income was 23% lower (R$ 903, 4 millions). .
Adjusted operating Ebitda decreased by 57%, to R$187.7 million, and there was a net operating loss of R$77.5 million – in 2021/22, there was a net profit of R$268.6 million on this front . BrasilAgro operates in Brazil, Paraguay and Bolivia.
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On June 30, its properties were valued at R$3.6 billion. Between owned and leased land, the company had almost 275 thousand hectares (total area) at the end of the last harvest.
Given the results accumulated in the 2022/23 harvest, the executive president of BrasilAgro, André Guillaumon, stated that the company’s board of directors approved the distribution of R$ 320 million in dividends.
The decision still needs to be approved at a shareholders’ meeting scheduled for October 24, but the payment must be made in the first half of November. The value adds to the approximately R$ 1 billion already distributed in the last five years, according to the company’s financial and investor relations director, Gustavo Javier López.
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