TerraVanta AgriServices Business Plan — Business Model & Revenue Streams

Section 5 · 6 of 24

Business Model & Revenue Streams

TerraVanta earns from eight distinct revenue streams spanning the value chain. The mix is deliberately balanced: infrastructure and processing provide stability; trading and finance provide growth and margin; retail and mechanisation provide frequency and reach.

Segment

Primary revenue source

Year-5 revenue

Grain handling & storage

Storage & handling fees

$127.5m

Commodity trading

Trading margins

$212.5m

Equipment sales & servicing

Equipment sales & service

$148.8m

Retail inputs

Product sales

$144.5m

Agricultural finance

Net interest income

$63.8m

Feed & processing

Feed & processed-product sales

$106.3m

Agri-logistics

Transportation fees

$42.5m

Insurance & other

Brokerage commissions

$4.3m

5.1 Revenue build by segment

No single division exceeds a quarter of group revenue at maturity. Commodity trading and grain handling anchor the top line, while feed processing and agricultural finance grow fastest in share as the platform matures and the finance book scales.

Figure 8 Revenue build by division, Years 1–5.

5.2 Where the profit is

Revenue share and profit share differ markedly. Grain handling and agricultural finance carry the highest margins and contribute disproportionately to EBITDA, whereas commodity trading is high-volume but thin-margin. This is why the physical-infrastructure and finance layers, not trading volume, drive the equity story.

Figure 9 Year-5 EBITDA contribution by division.

5.3 Unit economics & revenue drivers

Each division rests on a distinct volume driver and margin profile. Understanding these is essential to underwriting the earnings mix: the infrastructure and finance layers are capital-intensive but high-margin and recurring, while trading and retail are capital-light, higher-volume and thinner-margin. The blend is what produces both resilience and growth.

Division

Primary volume driver

Margin profile

Earnings quality

Grain handling & storage

Tonnes stored × fee/tonne × utilisation

High

Recurring, annuity-like

Agricultural finance

Loan book × net interest margin

High

Recurring, secured

Feed & processing

Throughput × processing spread

Medium

Semi-recurring

Equipment sales & servicing

Units sold + service/parts annuity

Medium

Cyclical + recurring parts

Retail inputs

Store count × basket × footfall

Low–medium

Seasonal, frequent

Agri-logistics

Loads × distance × rate

Low–medium

Contracted + spot

Commodity trading

Volume traded × net trading margin

Low

Volatile, high-volume

KEY FINDING — Margin mix, not revenue mix, drives value

Commodity trading contributes the largest revenue share but among the smallest EBITDA shares; grain storage and agricultural finance invert that relationship. An investor should therefore anchor valuation on the infrastructure-and-finance earnings core, treating trading as a working-capital-efficient volume and origination engine rather than a primary profit pool.