LUXEMBOURG, Aug. 12,
2024 /PRNewswire/ -- Adecoagro S.A. (NYSE: AGRO,
Bloomberg: AGRO US, Reuters:
AGRO.K), a leading sustainable production company in South America, announced today its results for
the second quarter ended June 30,
2024. The financial information contained in this press
release is based on consolidated interim financial statements
presented in US dollars and prepared in accordance with
International Financial Reporting Standards (IFRS) except for Non -
IFRS measures. Please refer to page 23 for a definition and
reconciliation to IFRS of the Non - IFRS measures used in this
earnings release.
Main highlights for the period:
- Gross sales were down 2.3% and 0.5% year-over-year during 2Q24
and 6M24, respectively. Higher volumes sold given the
year-over-year increase in production were fully offset by lower
prices of our main commodities.
- Adjusted EBITDA was up 2.7% and 2.0% year-over-year during 2Q24
and 6M24. This was explained by an outperformance of our Crops
segment on the sale of La Pecuaria farm, and better results of our
Dairy operations.
- Year-to-date we have already committed to distribution
$16.1 million more than the annual
minimum figure required by our policy ($86.4
million vs $70.3 million - via
dividend and share repurchase). During the rest of the year, we
expect to continue returning cash to shareholders.
Sugar, Ethanol & Energy business:
- Adjusted EBITDA reached $106.9
million and $158.7 million
during 2Q24 and 6M24, 8.5% and 18.0% lower YoY,
respectively.
(+) Higher year-over-year crushing during
2Q24 and 6M24 (4.0 million tons and 6.1 million tons, respectively)
on greater sugarcane availability and higher effective milling
days.
(+) Sugar max scenario (49%
production mix) as prices traded above hydrous ethanol in MS.
Ethanol carry-over (84% of year-to-date production) to profit from
higher expected prices.
(+) Low cost producers: unitary cost
of production in line versus prior year on better cost
dilution.
(-) Decline in net sales on lower
prices compared to the prior year.
(-) Year-over-year loss in
biological asset due to lower expected yields versus 2023, on
lower-than-average rains.
Farming business:
- Adjusted EBITDA amounted to $37.8
million during 2Q24 and $81.8
million during 6M24, 55.2% and 90.8% higher YoY,
respectively.
(+) Farm sale conducted in
April 2024 (La Pecuaria farm in
Uruguay), which generated an
Adjusted EBITDA of $15.3 million,
reflected in our Crops segment.
(+) Year-over-year gains in the
mark-to-market of our biological asset and agricultural produce for
our Crops (better yields and area) and Rice operations (better
prices and area).
(+) Higher prices for Rice and
Dairy's higher value-added products.
(-) Lower prices for soybean, corn
and wheat.
(-) Higher costs in U.S. dollar
terms.
Remarks
2024 Shareholder Distribution
- As of the date of this report, we have already committed
$86.4 million to distribution,
equivalent to 49% of the Adjusted Free Cash Flow from Operations
(NCFO) generated in 2023. This represents $16.1 million above the annual minimum stated in
our distribution policy.
- Cash dividends of $35 million
approved. First installment of $17.5
million paid on May 29th
(approximately $0.1682 per share);
second installment of $17.5 million
shall be payable in or about November
2024.
- Year-to-date we invested $51.4
million in repurchasing 5.2 million shares (4.9% of the
company's equity) at an average price of $9.98 per share.
- Going forward we expect to continue returning cash to our
shareholders via share repurchase. To execute this, in July 2024 the Company's Board of Directors
approved the renewal of our existing buyback program until
December 31, 2024 to repurchase up to
an additional 5% of the company's equity - in addition to the 4.9%
equity that we have already repurchased year-to-date, as noted
above.
Non-Gaap Financial Measures: For a full
reconciliation of non-gaap financial measures please refer to page
23 of our 2Q24 Earnings Release found on Adecoagro's website
(ir.adecoagro.com)
Forward-Looking Statements: This press
release contains forward-looking statements that are based on our
current expectations, assumptions, estimates and projections about
us and our industry. These forward-looking statements can be
identified by words or phrases such as "anticipate," "forecast",
"believe," "continue," "estimate," "expect," "intend," "is/are
likely to," "may," "plan," "should," "would," or other similar
expressions.
These forward-looking statements involve various risks and
uncertainties. Although we believe that our expectations expressed
in these forward-looking statements are reasonable, our
expectations may turn out to be incorrect. Our actual results could
be materially different from our expectations. In light of the
risks and uncertainties described above, the estimates and
forward-looking statements discussed in this press release might
not occur, and our future results and our performance may differ
materially from those expressed in these forward-looking statements
due to, inclusive, but not limited to, the factors mentioned above.
Because of these uncertainties, you should not make any investment
decision based on these estimates and forward-looking
statements.
The forward-looking statements made in this press release
relate only to events or information as of the date on which the
statements are made in this press release. We undertake no
obligation to update any forward-looking statements to reflect
events or circumstances after the date on which the statements are
made or to reflect the occurrence of unanticipated events.
To read the full 2Q24 earnings release, please access
ir.adecoagro.com. A conference call to discuss 2Q24 results will be
held on August 13, 2024, with a live
webcast through the internet:
Conference Call
August 13,
2024
10 a.m. US EST
11 a.m. Buenos Aires
11 a.m. Sao
Paulo
4 p.m. Luxembourg
To participate, please register at the link
Investor Relations Department
Emilio Gnecco
CFO
Victoria
Cabello
IRO
Email: ir@adecoagro.com
About Adecoagro:
Adecoagro is a leading sustainable production company in
South America. Adecoagro owns
210.4 thousand hectares of farmland and several industrial
facilities spread across the most productive regions of
Argentina, Brazil and Uruguay, where it produces over 2.8 million
tons of agricultural products and over 1 million MWh of renewable
electricity.
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SOURCE Adecoagro S.A.