the platform of retail for supplies and services agribusiness AgroGalaxy (AGXY3) recorded an adjusted net loss of 107.6 million reais in the second quarter, 135% higher than the negative performance obtained a year earlier, affected by higher interest rates, according to the balance sheet released this Monday.
The company highlighted that the basic interest rate (Selic) went from 3.4% per year in the second quarter of 2021 to 12.5% in the same period of 2022.
“(There was) an increase in interest paid to suppliers for term purchases (adjustment to present value) and CRA operations (Agribusiness Receivables Certificates), totaling a net impact of 68.1 million reais,” he said in a report.
There was also fees on loans and financing, due to increases in the balance of gross debt and the Selic rate, totaling 41.5 million reais in additional interest.
With that, and costs related to mergers and acquisitions, the company’s financial expenses jumped 166.3% in the second quarter.
On the other hand, cash generation measured by adjusted Ebitda soared to 56.3 million reais, against 2.5 million a year earlier.
“The adjusted Ebitda margin reached 2.9%, an increase of 2.7 pp in relation to the same period of the previous year. This increase was due to the relevant revenue growth combined with the increase in the percentage margin”, said the company.
Net revenue for the period expanded 94.2%, reaching a record 2 billion reais for the quarter. Revenues from the inputs segment increased 119%, to 781 million reais, and the grain area rose 81%.
“The growth was due to the 58% increase in prices, 20% in volume and 41% due to the addition of the acquisitions of Ferrari Zagatto and Agrocat”, he said.
AgroGalaxy also highlighted that there was a significant increase in prices in some categories of inputs, mainly fertilizers, and commodities. Only fertilizers had a price increase of around 86%.
Given the seasonality of the business, the order backlog of company had 3.9 billion reais in June, double the amount recorded in the same period last year.
See the result below:
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