The company recorded BRL 318.4 million, mainly driven by grain origination and processing.
Thanks to the vertical integration of its operations, the Rio Grande do Sul-based company 3tentos achieved a 46.1% increase in net profit in the third quarter compared to the same period in 2023, despite cautious input purchases by rural producers. This boost led to a recorded net profit of BRL 318.4 million, largely due to grain origination and processing. Over nine months, 3tentos’ net profit reached BRL 620.5 million, a 55.8% growth.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached BRL 365.4 million, with a 10.5% margin in Q3, marking a 105.6% growth. Year-to-date, EBITDA totaled BRL 974.7 million, reflecting a 175.6% increase.
“This result reflects our strategy of engaging across all agri-segments, allowing us to navigate a challenging input sales period without significant setbacks,” CEO Luiz Osório Dumoncel told Valor.
The company’s net operating revenue hit BRL 3.5 billion in the quarter and BRL 9 billion over nine months, showing annual increases of 45.4% and 50.3%, respectively.
In the input segment, net revenue reached BRL 757.5 million for the quarter, a 3.2% increase over the previous year. Higher volumes offset the 10%-15% price declines compared to the same period last year.
Dumoncel highlighted that lower producer profitability due to reduced commodity prices has resulted in “hand-to-mouth” purchasing, unlike previous seasons. Fertilizers and pesticides now represent a larger share of sales, with seeds seeing less demand.
“The 2023 wheat harvest in Rio Grande do Sul was 30% below forecast, so we had fewer seeds to sell this year. For soybeans, rain in the state affected seed quality, leading to reduced sales volume.” Annually, seed sales dropped by 50%, while fertilizers rose by 11% and pesticides by 46%.
In the grain business, annualized sales of soybeans increased 176%, while corn and wheat sales rose 47% and 14%, respectively.
The growth in soybean sales is largely due to increased internal processing by 3tentos for biodiesel production. Unlike other companies that export more, only 20% of 3tentos’ soy purchases go abroad. The grain segment’s net revenue for the quarter totaled BRL 885.4 million, up 126.5% year-over-year.
Increased biodiesel demand in Brazil, coupled with favorable biofuel prices, led to a 44.9% growth in the company’s industrial sector, totaling BRL 1.8 million for the quarter. “With the Fuel Law and the established biodiesel mandate, we expect to see ongoing growth in this sector,” Dumoncel summarized.
3tentos operates three soybean processing facilities in Ijuí (RS), Cruz Alta (RS), and Vera (MT), with enhanced performance resulting in a 90% increase in biodiesel production and a 76% increase in meal output over nine months. Due to efficiency gains and favorable biodiesel market conditions, the company raised its 2024 volume projection from 490,000 m³ to 560,000 m³.
With operations across Rio Grande do Sul and Mato Grosso, 3tentos is expanding per the growth plan announced earlier this year. In 2024, six new stores were opened, two in Rio Grande do Sul and four in Mato Grosso. Construction of a corn ethanol plant in Porto Alegre do Norte (MT) has also started, with a BRL 2 billion investment and opening projected for 2026. As of September, the company had invested BRL 159 million in this new facility.
