Company reports tenfold net profit growth in Q3 2024
Josapar, one of Brazil’s largest rice producers and owner of the Tio João brand, has obtained a R$ 152.92 million loan from the National Bank for Economic and Social Development (BNDES). The funds will be used to relocate its fertilizer unit from Pelotas (RS) to Rio Grande (RS).
The company did not disclose specific reasons for the relocation. The loan term is 10 years, with a 24-month grace period. Additionally, Josapar secured R$ 41.52 million from BNDES for working capital, with a five-year term and a 12-month grace period.
Q3 Financial Results
Josapar announced a net profit of R$ 3.9 million in Q3 2024, compared to R$ 385,000 in the same quarter of 2023, marking a significant tenfold increase. For the first nine months of 2024, net profit reached R$ 22.36 million, up from R$ 3.7 million in the same period last year.
Quarterly net revenue totaled R$ 586.9 million, slightly down from R$ 599.8 million in Q3 2023. Year-to-date revenue stood at R$ 1.52 billion, similar to R$ 1.45 billion in the previous year.
According to the company, higher profitability was driven by reduced carryover stocks from the previous harvest and limited international rice supply, which maintained raw material prices during the offseason.
Export Performance
Exports accounted for 8.6% of Josapar’s total revenue from January to September and 10.6% in Q3 2024, compared to 8.8% and 9.3% in the previous year, respectively.
Fertilizer Division Challenges
The fertilizer segment, which saw a revenue decline in 2023 due to normalized raw material availability and price reductions, faced additional setbacks in 2024. Extraordinary weather events in Rio Grande do Sul, including flooding, rendered the Pelotas facility inoperable for over a month.
“These factors impacted margins and revenue volumes, contributing to shifts in the company’s overall financial performance,” Josapar stated.
Overall Revenue and EBITDA
Despite challenges, the company’s year-to-date revenue until September reached R$ 1.7 billion, compared to R$ 1.6 billion in 2023. Quarterly revenue stood at R$ 643 million, slightly down from R$ 656 million in the same period last year.
EBITDA for the year-to-date was R$ 106 million (7% of net sales), up from R$ 90 million (6%) in 2023. In Q3 2024, EBITDA reached R$ 28 million (5%), compared to R$ 41 million (7%) in Q3 2023.
