Earnings Sentiment

Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.

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Sentiment Distribution

   

Earnings Call Transcript Word Cloud

     

Bullish Statements during Earnings call

Statement
Our clients are the large producers that grow every year, because of the tax efficiencies they have and they also had important productivity gains
So commodities, the price of commodity will affect the farmers but remember that in the last few years, we had a very positive contribution margin
We will say how we did, how things came out, and how we're making progress in the harvest the delivery of 2 million tons of sugarcane, once again being strong as a large producer of sugarcane
So irrigation is good for cotton, and this can bring us good operational results and good gains in these irrigated land, making the land more expensive
It is positive, but it would be very good, so our vision of price
We had a positive result with these biopharms and we began to use this in other crops, and the result was very good
We hope to have an improvement in the efficiency of the use of fuel
So you can continue trusting in the work done by the company, the resilience in delivering results both in operations and sale of land
This allows us to say that we will have sustainable growth
We believe that since we planted corn in a restricted window, we believe we will have a very positive harvest in corn
So we're very optimistic
And we were able to capture very positive premiums last year BRL30 million better in our results
If the basis was even or 30-positive or 40, as it was historically, we would have a positive contribution margin, a very good one
We know that we have new areas where -- new areas with sugarcane we're making adjustments and we see an improvement year after year
Now we have favorable pasture and we will close this gap in GMD
We won't get to sell at this price, but we're very optimistic
But what I'd like to call your attention to is that in the last years, in spite of being company that sold a lot of land, we were able to continue to grow the planted area
This has been very resilient inside the company
We understood that we could capture better premiums
So we were able to serve on better prices
This will become stronger
You said there are good opportunities to sell land this year
Beans will become stronger
Cotton has been growing strongly in Paraguay
And we were able to capture better prices
We began with 800 hectors than 2,000, now 2,500 hectares of cotton in Paraguay very good for cotton an absurd natural fertility
It's important to say that this is the positive trend that I see
And last year, this inventory also generated an important result
Price of land, you're right in saying that the increase in RJ, I always say that in agro business, communication is very efficient
So a great offer with lower demand in China growth of 1%
       

Bearish Statements during earnings call

Statement
Ethanol has been a challenge for us due to what you have been following in terms of prices, many of you follow also the prices of ethanol and sugar, it has been a challenge and we begin to see signs of improvements for the next harvest
And this year corn gave us a negative result and soybean represented BRL 7 million
So in ethanol we have a challenge the Brazilian harvest
We saw that the breakeven was difficult for corn
We had an operational margin that was lower than the historical levels
We had contribution margins that were very bad
Now we added one in Xingu farm, where we produce soybean corn second crop for corn Sao Jose also where we have sugarcane, soybean and corn, we began -- and we ran some tests with some books that are that are threat and gave us problems with the quality of the product
So the products that, we delivered we had a negative premium and this resulted in 23% drop in prices
What can we expect in the next few years? All these crops present a challenge in terms of market channels
It's been a challenging year in terms of production
So an important drop in fertilizer prices, especially potassium chloride, phosphorus also has a drop
This was bad for pastures
We had derivatives that on June 30 last year, when we saw the future in the short-term, would have lower prices we thought it would be the right time to sell our inventory and thus, during the first semester we obtained negative results of BRL23 million
André showed the results lower planting area, an important drop in revenue
Phosphated products are still high chloride has dropped a lot, so below historical levels and nitrogenated fluctuating
And as we said, the margins began to drop in the previous year
Ethanol is always 30% cheaper than gasoline and the EBITDA margin was also affected, dropped and later, I will show you this fact
We had to sell at prices 39%, lower than the previous year
Otherwise, we would be worried with farmer situations in the second semester
So it doesn't mean a big drop in contribution margin since this crop had a very negative price -- very negative result
   

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