Brazilian agribusiness firms face cash flow and climate challenges

Major Brazilian agribusiness companies are reporting mixed financial results as they navigate challenges in cash generation, climate risks, and market volatility.

SLC Agrícola reported second-quarter 2026 results with net revenue reaching R$ 2.18 billion, a 16.8% annual increase. This growth was driven by a 14.4% rise in the volume of cotton, soy, and second-crop corn sold. Net profit rose 75.3% to R$ 245.1 million, exceeding market estimates. However, adjusted EBITDA grew more modestly by 4.3% to R$ 580.6 million, with margins seeing a slight decline.

Raízen and SLC Agrícola face a growing emphasis on capital discipline and leverage as they look toward the 2026 harvest. Analysts note that operational and accounting gains are not always translating into immediate cash flow.

Zilor reported challenging results for the first quarter of the 2027 harvest, ending June 30, 2026. The company cited adverse weather conditions affecting milling rates, pressured sugar prices, and reduced raw material quality. Despite these hurdles, Zilor noted improvements in sugarcane productivity due to technological investments and maintains a focus on long-term recovery through conservative management.