Brazilian input company Vittia: Agri-input orders grow 60%

Date:09-11-2023

The pace of orders for agricultural inputs increased by 60% in August compared to July, said Alexandre Del Nero Frizzo, financial director of Brazilian input company Vittia.

According to Frizzo, this increase signals a ″reversal″ of what was recorded in the second quarter of this year. In the first half of 2023, Vittia had obtained a net revenue of BRL221.4 million, 29% less than the first half of the previous year. These results are mainly due to the drop in the price of organomineral inputs (NPK), Frizzo noted.

″Revenue is increasing little by little,″ he added, projecting an even greater recovery in the fourth quarter. The input company also expects better profit margins for this year, due to the increased share of organic products in the sales mix. ″This year, we experienced a change in this scenario, but we are not returning to the historical pattern. We went from one end to another, opposite,″ Frizzo further added, noting that the delay in purchasing inputs is well above average.

″Despite the short-term challenges, it is important to highlight that Brazilian agriculture, and also the agricultural inputs market, have witnessed a favorable scenario for the 2023/2024 harvest, as even despite the reduction in expected profitability in nominal terms, there is still the prospect of good earnings for producers,″ he further said.

″The market history shows that the sale of special fertilizers is growing 13% per year on average, and should remain at this level under a scenario of price stability, while market projections for biological pesticides are around 30% per year until 2030. These are positive projections for Vittia, which is well placed in the biological defense market. This is a line that should increasingly gain participation within the company's business,″ he explained.

Wilson Romanini, CEO and member of the founding family, also highlighted his optimism and stated that ″agriculture will grow, Vittia will grow, and the companies that are working well will grow this year.″

″Skids are natural, but we cannot slip within our company. I am very calm about how 2023 will unfold,’ stressed Romanini, who heads the company valued at BRL1.7 billion.

In July 2023, Vittia opened a new distribution center in Luís Eduardo Magalhães in the Brazilian state of Bahia.

(Editing by Leonardo Gottems, reporter for AgroPages)

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