BrasilAgro Is Cheaper After Q1 2025, But Still Not An Opportunity
Portfolio Pulse from
BrasilAgro's Q1 2025 results show improved margins in soybeans and sugarcane, but operational profits are insufficient to cover depreciation, amortization, and interest. The sale of the Taquari farm generated gains but indicates a strategy of selling assets in a weak market. Hedging at challenging BRL exchange rates could negatively impact margins.

December 03, 2024 | 7:30 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
BrasilAgro's Q1 2025 results show improved margins in soybeans and sugarcane, but operational profits are insufficient to cover D&A and interest. Asset sales in a weak market and challenging hedging could impact future margins.
Despite improved margins in soybeans and sugarcane, BrasilAgro's operational profits do not cover depreciation, amortization, and interest, indicating financial strain. The sale of the Taquari farm, while generating gains, reflects a strategy of selling assets in a weak market, which may not be sustainable long-term. Additionally, hedging at challenging BRL exchange rates could further pressure margins, suggesting potential negative impacts on the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100