Strong 2024 Results Position 3Tentos for Growth Amid Brazil’s Agricultural Volatility

3Tentos Agroindustrial S/A (TTEN3), a leading Brazilian agribusiness company, closed 2024 with strong annual growth but faced hurdles in the fourth quarter.

The company’s net profit for the year rose 31.8% to R$756.4 million ($126M), driven by gains across its three core segments: agricultural inputs, grains, and industrial operations.

Annual net revenue surged 42.5% to R$12.8 billion ($2B), while adjusted EBITDA more than doubled, reaching R$973.6 million ($162M)—a 101.4% increase.

The industrial segment led the growth, with revenue climbing 43.9% to R$6.75 billion ($1B), supported by soybean processing and biodiesel production. Grain revenues jumped 84.4% to R$3.26 billion ($1B), while agricultural inputs grew by 10.9%, generating R$2.82 billion ($0B).

CEO Luiz Osório Dumoncel credited the results to operational synergies and structured growth strategies, reflected in a return on invested capital (ROIC) of 24.7%, the company’s highest since its IPO in 2021.

However, fourth-quarter net profit fell 22.6% year-over-year to R$135.9 million ($23M) due to adverse weather conditions and accounting adjustments. Heavy rains in Rio Grande do Sul and drought in Mato Grosso reduced seed availability and quality, impacting sales volumes.

3Tentos Faces Challenges

Additionally, hedge contract adjustments caused a negative financial impact of R$241 million ($40M) in the quarter. Despite these setbacks, Dumoncel highlighted the company’s expansion efforts, including seven new store openings in 2024, bringing its total footprint to 70 locations across Rio Grande do Sul and Mato Grosso.

The broader agricultural sector faced a challenging year, with Brazil’s crop production dropping 7.2% due to extreme weather. Yet, government measures like a record R$475 billion ($79B) Crop Plan aimed to stabilize the market.

As 3Tentos marks its 30th anniversary in 2025, it plans significant investments of R$2.12 billion ($0B) under its “New Growth Cycle” strategy through 2030, signaling confidence in long-term growth despite ongoing challenges.