Adjusted EBITDA reached $341.0 million in 9M24. Second installment of the $35 million annual cash dividend to be paid in November. $96.3 million committed to shareholder distribution year-to-date.

PR Newswire

LUXEMBOURG, Nov. 13, 2024

LUXEMBOURG, Nov. 13, 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 third quarter ended September 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 up 17.7% and 6.3% year-over-year during 3Q24 and 9M24, 
      respectively. Higher volume sold more than offset the lower prices of our 
      main commodities. 
 
   -- Adjusted EBITDA was down 28.6% in 3Q24. However, when further adjusted by 
      the one-time event of a farm sale in September 2023 ($29.8 million in 
      Adjusted EBITDA), the Adjusted EBITDA was down 11.7% in the quarter. 
 
   -- On a year-to-date basis, Adjusted EBITDA declined by 10.5% 
      year-over-year. Despite record results in our Rice operations and 
      an outperformance from our Dairy business, the decrease was mainly driven 
      by a year-over-year loss in the mark-to-market of our biological assets 
      in our Sugar, Ethanol & Energy business due to dry weather and lower 
      prices. 
 
   -- Year to date, we have already committed $26.0 million more to shareholder 
      distributions than the annual minimum figure required by our distribution 
      policy ($96.3 million vs $70.3 million - via dividend and share 
      repurchase). Going forward, we continue focusing on the return to our 
      shareholders. 

Sugar, Ethanol & Energy business:

   -- Adjusted EBITDA in the SE&E business reached $100.1 million during 3Q24 
      and $258.9 million during 9M24, 12.6% and 16.0% lower year-over-year, 
      respectively.(+) Sugar maximization (55% in 3Q24 / 51% in 9M24) as prices 
      traded above ethanol. We continue to maximize hydrous ethanol within our 
      ethanol production on better pricing.(+) Higher net sales on higher sugar 
      and ethanol volumes sold.(+) Cost of production remained flat at 7.8 
      cts/lb driven by better dilution and weaker FX.(-/+) 10.1% lower 
      year-over-year crushing volume in 3Q24 on lower yields. Year-to-date 
      crushing was up 6.4% on greater sugarcane availability and higher 
      third-party cane.(-) Year-over-year loss in biological asset due to lower 
      expected yields versus 2023, on below average rains, coupled with 
      year-over-year decline in sugar and ethanol prices. 

Farming business:

   -- Adjusted EBITDA for the Farming business amounted to $17.4 million during 
      3Q24, representing a $26.8 million year-over-year decline due to a farm 
      sale conducted in September 2023. Excluding this event, Adjusted EBITDA 
      performance was in line versus the prior year. Year-to-date, Adjusted 
      EBITDA reached $99.2 million, 10.8% higher compared to the same period of 
      last year. (+) 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.(+/-) One-off events. Sale of La Pecuaria farm ($15.3 million in 
      Adjusted EBITDA) conducted in 2Q24 versus the sale of El Meridiano in 
      3Q23 ($29.8 million in Adjusted EBITDA). 

Remarks

2024 Shareholder Distribution

   -- As of the date of this report, we have already committed $96.3 million to 
      shareholder distribution, equivalent to 55% of the Adjusted Free Cash 
      Flow from Operations (NCFO) generated in 2023. This represents $26.0 
      million above the annual minimum stated in our distribution policy. 
 
          -- Cash dividends: $35.0 million approved. On November 27th, we will 
             pay the second installment of $17.5 million (approximately $0.1740 
             per share) to shareholders of the Company of record at close of 
             business on November 12th. First installment of $17.5 million paid 
             on May 29th (approximately $0.1682 per share). 
 
          -- Share repurchases: $61.3 million expended year-to-date in 
             repurchasing 5.7% of the company's equity (6.0 million shares at 
             an average price of $10.16 per share). 

Independent Farmland Appraisal Report

   -- As of September 30th, 2024, Cushman & Wakefield (C&W) updated its 
      independent appraisal of Adecoagro's farmland which consists of 210,371 
      hectares valued at $682.6 million. On a comparable basis, current 
      valuation of our land portfolio represents a year-over-year increase of 
      0.4%. 

Cash Tender of AGRO'27s 6.00% Notes - Final Result

   -- On August 17th, 2024, we finalized the cash tender offer of AGRO's 6.00% 
      Senior Notes due 2027. The Company repurchased $84.4 million aggregate 
      principal amount of the outstanding senior bonds. This proves the 
      Company's disciplined and constant search for Liability Management 
      opportunities to better finance our operations at attractive rates and 
      add value to shareholders. 

Non-Gaap Financial Measures: For a full reconciliation of non-gaap financial measures please refer to page 23 of our 3Q24 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 3Q24 earnings release, please access ir.adecoagro.com. A conference call to discuss 3Q24 results will be held on November 13, 2024, with a live webcast through the internet:

Conference Call

November 14, 2024

10 a.m. US EST

12 p.m. Buenos Aires

12 p.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.

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November 13, 2024 16:30 ET (21:30 GMT)