- Orbia’s Precision Agriculture segment, under the Netafim brand, reported a 12% increase in revenues and a 54% rise in EBITDA for Q3 2023.
- The segment’s strong performance contrasts Orbia’s overall decline in revenues and EBITDA.
- Precision Agriculture’s EBITDA margin increased by 202 basis points to 7.4%.
- The segment’s growth was primarily driven by strong performance in specific Asian and Latin American markets.
- Despite weaker economic conditions and weather-related events affecting demand in the U.S., the segment managed to post positive numbers.
While Orbia Advance Corporation, S.A.B. de C.V. (BMV: ORBIA) reported a challenging third quarter in 2023 with declining revenues and EBITDA across most of its business groups, its Precision Agriculture segment emerged as a bright spot. Operating under the Netafim brand, the segment showed resilience with increased revenues and EBITDA.
Precision Agriculture’s Financial Performance
Orbia’s Precision Agriculture segment reported revenues of $250 million for Q3 2023, marking a 12% year-over-year increase. The segment’s EBITDA stood at $19 million, a significant 54% rise compared to last year. Furthermore, the EBITDA margin for the segment increased by 202 basis points, reaching 7.4%.
The segment’s strong performance was primarily attributed to robust sales in specific Asian and Latin American markets and European improvements. This growth offset the reduced demand in the U.S. and other markets, influenced by weaker economic conditions and weather-related events.
CEO’s Statement on Precision Agriculture
While the overall statement from Orbia’s CEO, Sameer Bharadwaj, focused on the company’s challenges, the resilience of the Precision Agriculture segment aligns with Orbia’s long-term vision of resolving the world’s biggest challenges, including sustainable agriculture.
The Precision Agriculture segment is strategically important for Orbia, providing advanced irrigation systems, services, and digital farming technologies. These solutions enable farmers to achieve higher and better-quality yields while using fewer resources, contributing to more efficient and sustainable agriculture globally.
Image provided by Netafim