Atlas Agro 2023
1. Thesis
THESIS
1
NON-COMMODITIZIED SPECIALTY GRAINS
By working exclusively with non-commoditized grains, Atlas has better arbitrage price power, leading to higher margins
SCALABLE SPECIALTY GRAINS
The specialty grains that Atlas manages are highly scalable for the farmer, being produced in the same manner as soybeans and corn.
NO CREDIT RISK FROM FARMERS
Atlas does not assume any credit risk: it intermediates existing credit facilities with farmers
INDUSTRIALIZED SPECIALTY GRAINS
04
Atlas works exclusively in the B2B and can focus on building the best product instead of dealing with the B2C challenges, such as brand and distribution
DOLLARIZED REVENUE
Atlas has a relevant portion of its revenue coming from international clients, de-risking FX fluctuations 05
e
HIGHLIGHTS
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2. Origination
Origination
Atlas is progressively improving its sesame origination capacity year over year
Sesame seeds origination by crop year
MT
38K
For the 2024 crop year, we have already bought over 35K MT of sesame, improving price conditions and anticipating the year’s demand
Avg. Buying Price 2022: R$5.90/kg
Avg. Buying Price 2023: R$5.51/kg
Avg. Buying Price 2024: R$5.20/kg
MT
13K
10K
3.5K
0.8K
out nov dez jan fev mar abr mai jun jul ago set 2020 2021 2022 2023 2024
3. Financials
Unit Economics 2023
Mixing geography and verticalization is a solid way to achieve a sustainable margin mix
These figures show the 2023 crop year contracts performance.
In 2024, Atlas is improving its buying conditions and selling price, which is drastically moving the Contribution Margin upwards.
Sortex Nacional 9.000 (7.423) (785) 793 Revenue (-) COGS (-) Freight and Export Expenses = Contribution Margin 8.8% R$/MT Sortex Middle East 7.895 (5.581) (1.197) 1.116 Revenue (-) COGS (-) Freight and Export Expenses = Contribution Margin 14.2% R$/MT Sortex Europe 8.925 (5.590) (1.349) 1.986 Revenue (-) COGS (-) Freight and Export Expenses = Contribution Margin 22.3% R$/MT
Unit Economics 2024
Mixing geography and verticalization is a solid way to achieve a sustainable margin mix
Sortex Middle East 8.181 (5.533) (1.194) 1.455 Revenue (-) COGS (-) Freight and Export Expenses = Contribution Margin 17.8% R$/MT Sortex Europe 8.989 (5.540) (1.349) 2.106 Revenue (-) COGS (-) Freight and Export Expenses = Contribution Margin 23.4% R$/MT
ME 8.838 (5.719) (1.197) 1.922 Revenue (-) COGS (-) Freight and Export Expenses = Contribution Margin 21.7% R$/MT
Equinom
Unit Economics - Seeds
Atlas will incorporate the new high-margin seed sales business in 2024. Contribution margin can be up to three times larger than the company’s core business
100.000 100% 21.250 21,3% 8.265 8,3% 31.250 31,3% 3.000 3,0% 800 0,8% 169 0,2% 127 0,1% 35.139 35,1%
35.1 0.1 0.2 0.8 3.0 31.3 8.3 21.3 100 (=) Contribution Mg (-) Packaging (-) Operating Loss (-) Road Freight (-) Treatment (-) Royalties (-) COGS (-) Deduction Revenue Unit Economics – Equinom Seeds (R$) Expected R$/Kg R$ 000´ % 18.750 100% 3.984 21,3% 5.510 29,4% 0 0,0% 0 0,0% 800 4,3% 112 0,6% 127 0,7% 8.216 43,8% 8.2 0.1 0.1 0.8 0.0 0.0 5.5 4.0 18.8 (=) Contribution Mg (-) Packaging (-) Operating Loss (-) Road Freight (-) Treatment (-) Royalties (-) COGS (-) Deduction Revenue Unit Economics – K3 Seeds (R$) Expected R$/Kg R$ 000´ %
Debt Optimization
With new leverage instruments such as ACCs, the debt duration becomes more efficient than using only CRAs, thus carrying the debt for a shorter time
Yearly debt by type of instrument
R$ M, % of total debt, and duration
(% net revenue)
ACC Monetary Benefit
R$ 5.8M R$ 18.6M 65 58 184 2022 2023 2024 CRA ACC CDI + 6,0% 8,2 Custo (a.a.) Duration (meses) VC + 8,5% 4,1 VC + 8,0% 4,1 6,6% 5,7%
Financials
Income Statement (Crop Year 2022-2024)
KPI 2022 2023 2024 2022FY 2023FY Volume (MT) 9.960 10.500 35.000 % Yoy 5% 233% DRE (000' - Crop Year) 2022 2023 2024 2022FY 2023FY Gross Revenue 70.052 85.660 338.088 6.369 149.948 ( - ) Deductions -418 -184 -13.498 -276 -460 ( + ) Tax Benefit 1.044 1.044 Net Revenue 69.634 86.520 324.590 6.093 150.532 ( - ) Variable Costs -62.340 -70.022 -259.315 -9.785 -124.897 ( = ) Contribution Margin 7.295 16.498 65.275 -3.692 25.636 % Contribution Mg. 10,5% 19,1% 20,1% N/A 17,0% ( - ) SG&A -11.075 -13.518 -19.393 -9.268 -12.818 ( = ) EBITDA -3.781 2.980 45.882 -12.961 12.818 % EBITDA N/A 3,4% 14,1% N/A 8,5% ( - ) D&A -640 -995 -1.620 -654 -823 ( = ) EBIT -4.421 1.985 44.262 -13.615 11.995 % EBIT N/A 2,3% 13,6% N/A 8,0% ( - ) Finacial Result -9.504 -2.176 -6.559 -5.560 -5.689 ( = ) EBT -13.925 -191 37.703 -19.174 6.307 % EBIT N/A N/A 11,6% N/A 4,2% ( - ) Tax -17 -342 -12.819 0 -359 ( = ) Net Income -13.942 -533 24.884 -19.174 5.947 % Net Income N/A N/A 7,7% N/A 4,0% ( - ) Non-operating results -4.809 1.000 0 -4.806 997 ( = ) Net Income -18.751 467 24.884 -23.980 6.945 % Net Income N/A 0,5% 7,7% N/A 4,6%
Office GC Square | Rua Gomes de Carvalho, 1108 – cj. 82, Vila Olímpia, São Paulo - SP, Brazil Contact Us bernardo.garcia@shiftcapital.com.br leonardoc@atlasagrobr.com mauricio.grin@shiftcapital.com.br