September 3, 2020

Agribrasil CEO forecasts doubled revenues and future IPO

Frederico Humberg, CEO of Brazilian grain merchant Agribrasil said the company is projected to hit more than double revenue in 2020 thanks to increased commodities demand from China, Reuters reported.

Humberg projects Agribrasil's revenue to hit BRL 1 billion (~US$186 million; BRL 1 = US$0.19) in 2020, compared to BRL 390 million (~US$73 million) last year due to high demand for corn and soybeans.

Agribrasil is set to trade about 1 million tonnes of grains in 2020, higher than the 450,000 tonnes in 2019 because of weak currency and lower logistics costs.

Humberg also said there are plans for the company to go public, with shares listed on the B3 stock exchange special segment and a goal of raising BRL 200 million (~US$37.4 million). The funds will be channeled towards a port terminal investment in south or northeast Brazil.

The public listing could done in 2021 based on market conditions.

The company has no logistics assets, but Humberg said revenue may quadruple in four years with Agribrasil poised to become one of Brazil's 10 biggest grain traders in five years' time.

He also said grain processing operations could be added to Agribrasil.

Agribrasil was founded by Humberg in 2016. He worked for Glencore and Bunge previously, and was US-based grain trader Gavilon's CEO.

-      Reuters