Boa Safra expands operation and launches FIAGRO

Boa Safra Sementes celebrates 1 year of its IPO with many reasons to celebrate. Since going public on the Stock Exchange, on April 29, 2021, the company's shares have appreciated and gone from R$9,90 to above R$13,00 per share. Its base of individual investors followed suit and increased by more than 153% in the period: at launch, the total number of CPFs was 17 thousand and, according to data from April/2022, the base currently has 43.141. The large number of CPFs in the IPO was one of the main highlights of the entry into B3.

“The SOJA3 share is one of B3’s best performances, despite the turbulent market moment. Even with many people returning to investing in fixed income, it is gratifying to see that our shares are doing well and that the CPF base continues to grow, showing the interest in investing in agribusiness”, says Marino Colpo, CEO of Boa Safra. In the same period, the company also consolidated itself as a leader in the production of soybean seeds in Brazil, increasing its market share from 5,7% in 2020 to 6,1% and reaching, in 2021, a historical net revenue of R$1,044 billion, 78% higher than the previous year.

Expansion 

Boa Safra's main focus last year was to consolidate its expansion plan. As announced in the IPO, the company invested a significant portion of the resources obtained from the opening of shares in expanding production capacity. Since then, there have been three major projects in 2021: the already completed expansion works at the Buritis branch, in Minas Gerais, and the third production line at the Cabeceiras unit, in Goiás, in addition to the expansion of the Jaborandi unit, in Bahia, which is in the final stretch.

In 2022, the company has three other projects underway: the construction of Distribution Centers (DC) in Sorriso, in Mato Grosso, and in Balsas, in Maranhão, and the beginning of work on a Seed Processing Unit (UBS ) in Primavera do Leste, in Mato Grosso. According to the CEO, these initiatives help sowing to become more present in the country's main soybean producing hubs, ensuring better product quality until it reaches the farmer. At the same time, the works substantially expand Boa Safra's installed capacity - jumping from 100 big bags (of approximately 1.000 kg of seeds each) in 2020 to around 170 big bags by the end of 2022.

More options for investing in agriculture

To continue investing in its growth and without compromising its working capital, maintaining its asset light philosophy, Boa Safra has just signed a partnership with Suno to launch a FIAGRO (Investment Fund in Agroindustrial Production Chains), the “ agribusiness real estate fund, which allows individual Brazilian investors to invest in agribusiness more easily.

The hybrid fund (CRA + Real Estate) is managed by Suno and has an initial investment amount of R$150 million. With the partnership, Boa Safra gains access to competitive funding for its operations, and investors gain efficient access to a profitable, low-risk operation, with recurring dividends and a modern tax structure. The fund has already had its creation registration approved with the CVM and the shares should be available for trading on the market in approximately 90 days after the capital is paid in.

“With FIAGRO, we created another investment diversification option for the agribusiness market. This asset is free from income tax on income for individuals and allows investment in both agricultural land and Boa Safra receivables. We are very optimistic about the partnership with Suno and are sure that the fund will attract even more investors to our business”, concludes Colpo.