Fertilizantes Heringer SA
BOVESPA:FHER3
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Fertilizantes Heringer SA
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Good morning, and thank you for waiting. Welcome to Fertilizantes Heringer Call to discuss Third Quarter 2024 Earnings Results. With us today are Mr. [ Foster ] Pereira Conveyor Controller, [indiscernible] Market Intelligence Coordinator of the company.
We would like to inform you that this event is being recorded.
[Operator Instructions]
Before proceeding, let me mention that any forward-looking statements that might be made during this conference call regarding the company's business prospects, projections and operating and financial goals are based on the beliefs and assumptions of the company's management as well as on information currently available.
Forward-looking statements are not a guarantee of performance. They involve risks, uncertainties and assumptions as they refer to future events, and therefore, depend on circumstances that may or may not occur.
Investors should understand that general economic conditions, industry conditions and other operating factors may affect the company's future performance and may lead to results that differ materially from those expressed in such forward-looking statements.
I would like now to give the floor to Mr. [indiscernible], who will begin the [indiscernible], who will begin the presentation. Mr. [indiscernible], you may begin.
Good morning. Thank you very much for joining us in this call. Let's start the presentation.
[ Technical Difficulty ]
We'll start talking about quarterly deliveries, volumes and crops by Fertilizantes Heringer in the third quarter 2024. Heringer delivered directly to grow is about 696,000 tons, a reduction of 11.2% compared to the same period of last year. Most of these volumes were concentrated mainly on coffee crops, we delivered 290,000 tons 42% of the whole volume delivered in Q3. Then we had soy being with 19% or 134,000 tons and then corn 10% of total deliveries or 70,000 tons, and then sugarcane is the fourth crop with a higher delivery during the period, 63,000 tons. We had about 139,000 tons related to other crops.
Fruits and vegetables, reduction in volume in Q3 '24 is mainly to the focus of the company on profitability and credit risk aversion. There was a postponement in the soybean market and an acceleration in the coffee market, given the growers enjoyed could change relations in the period where the difficulties affected deliveries during this period, especially for sugarcane crop given the wild fires that happened mainly in the state of Sao Paulo. Regarding year-to-date deliveries, volume drops, during the first 9 months of 2024, Heringer delivered [ 407,000 ] tons, 500,000 tons profit crop or 43%. Secondly, corn, 281,000 tons or 19% of the volume, and soybean 191,000 tons or 13% and sugarcane accounting for 181,000 tons or 12% of the volume. We also had 354,000 tons related to other crops.
Volume reduction was 6.7% compared to the 9 months of 2023. And the volume reduction in the period was due to the focus on profitability and credit risk aversion as previously mentioned. As regards the mix of delivered products in conventional products in Q3 '24 Fertilizantes Heringer just delivered 587,000 tons of conventional products and 109,000 tons of premium products, considering the accumulated volume conventional
[ Technical Difficulty ]
In the first 9 months of 2024, 1,190,000 tons and for premium products, 217,000. Focus on differentiation and diversification of the premium product portfolio and in high profitability. We have an example of margin aggregation in the premium coffee product portfolio considering value or the logic of capturing value. Considering that this is the most profitable.
Now I turn the floor to [ Faust ], who will speak about the financial performance of the company.
Good morning, everyone. I will now talk about the financial performance of Q3 '24 and year-to-date 9 months '24. Starting with the last -- with the third quarter of 2024. Net revenue of BRL 1.5 billion compared to the same period of third quarter 2020 BRL 1.6 billion. Now to gross result, we ended Q3 with BRL 100 million compared to BRL 101 million year-on-year. As G&A, BRL 84 million negative compared to EUR 71.5 million in Q3 '23. Negative EBITDA compared to BRL 3.4 million EBITDA in Q3 '23.
Now looking at the 9 months of 2024. Net revenue, BRL 3.2 billion over EUR 3.9 million in the nine months of 2023. Gross result, BRL 116 million positive compared to a growth result of BRL 35 million negative in the nine months of 2020, EBITDA BRL 9 million negative compared to the 2023 nine months to BRL 280 million negative.
Now speaking about our financial expenses. Basically, exchange variation and to also provides reorganization interest. We ended with a positive BRL 58 million compared to Q3 '23 55million negative. Interest rates, BRL 49 million negative compared to 2023, BRL 33 million negative. Net income was a loss of BRL 9 million compared to BRL 62 million negative in Q3 '23. During the 9 months, we had the exchange variation, there was not -- depreciation of the BRL was not sufficient for the currency recovery in the nine months of 2024. So we still have an accumulated negative variation of BRL 233 million negative and BRL 120 million negative for court supervisory organization interest was BRL 496 million negative in the nine months of 2024 compared to BRL 329 million negative in the nine months of 2023.
Now speaking about cash flow. Looking at the year-to-date nine months of 2024, Heringer recorded cash and cash equivalents of BRL 363 million positive. And here, I would like to highlight the main items making up the variation in the period. Before income tax and social contribution, BRL 507 million, noncash expenses mainly comprising interest and unrealized exchange gains of BRL 399 million, increase of BRL 276 million in asset accounts mainly due to inventories, increase of BRL 803 million and liability accounts, mainly composed of suppliers. Net investment in assets, BRL 97.8 million mainly composed of works to adjust the units.
Now I turn the floor back to [indiscernible] to speak about market outlook.
Thank you [indiscernible]. To speak a little about the performance of imported raw material prices. I'll start talking about the area the green line in the chart. Even with strong demand from India with a number of auctions during this year, a delay in summer rains capped produces very cautious holding back the demand for nitrogen fertilizers for the second crop corn in Brazil in Q3 and prices remained flat during the month of September, around $356 per ton.
Now speaking a little bit about potassium chloride, the red line with the end of purchases for soybeans in the second crop corn market, still very slow in Q3 increased imports of potassium chloride in the period have begun to weigh on prices and then price was about $290 per ton CFR.
Regarding MAP, the blue line in the chart, we continue with restricted inventories and very limited supply by international producers and late demand of soybean altogether that maintained phosphate prices behind Brazil about $636 ton to considering costing.
Now speaking a little about the domestic production planted area versus fertilizer consumption, putting to CONAB expectations according to the first CONAB on the 2024-25 harvest disclosed in October. Brazil should reach record harvest of around 322 million tons with grain production seeing an increase of 8.3% from 2023, '24 harvest, which was 297.9 million tons.
Well, this is what we had for you. Thank you very much for your attention.
Thank you, [indiscernible] and [indiscernible]. We will now start the Q&A session for investors and analysts only.
[Operator Instructions]
As there are no questions, Fertilizantes Heringer's Earnings Conference Call is closed. Thank you very much, and have a nice day.