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.

Rhea-AI Summary

Adecoagro (NYSE: AGRO) reported mixed financial results for Q3 2024. Gross sales increased 17.7% in Q3 and 6.3% year-to-date, driven by higher volumes despite lower commodity prices. However, Adjusted EBITDA declined 28.6% in Q3 and 10.5% year-to-date. The company committed $96.3 million to shareholder distributions, including a $35 million annual dividend and $61.3 million in share repurchases. The second dividend installment of $17.5 million ($0.1740 per share) will be paid on November 27th. The company's farmland portfolio was independently valued at $682.6 million, showing a 0.4% year-over-year increase.

Positive

• Gross sales up 17.7% in Q3 and 6.3% YTD
• Committed $96.3M to shareholder distributions, exceeding minimum policy by $26M
• Repurchased 6M shares (5.7% of equity) at $10.16 average price
• Sugar production costs remained flat at 7.8 cts/lb
• Year-to-date crushing volume up 6.4%

Negative

• Adjusted EBITDA down 28.6% in Q3 and 10.5% YTD
• Sugar & Energy EBITDA declined 12.6% in Q3 and 16.0% YTD
• Lower yields due to below average rainfall
• Decreased prices for sugar, ethanol, soybean, corn and wheat
• Higher costs in U.S. dollar terms

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.

FAQ

What is Adecoagro's (AGRO) dividend payment for 2024?

Adecoagro's annual dividend is $35 million, paid in two installments of $17.5 million each. The second installment of $0.1740 per share will be paid on November 27, 2024.

How much did AGRO spend on share repurchases in 2024?

AGRO spent $61.3 million on share repurchases in 2024, buying back 6.0 million shares at an average price of $10.16 per share, representing 5.7% of the company's equity.

What was AGRO's Adjusted EBITDA for Q3 2024?

AGRO's Adjusted EBITDA declined 28.6% in Q3 2024. When adjusted for a one-time farm sale event, the decline was 11.7% for the quarter.

What is the current value of AGRO's farmland portfolio?

According to Cushman & Wakefield's independent appraisal, AGRO's farmland portfolio of 210,371 hectares was valued at $682.6 million as of September 30, 2024, showing a 0.4% year-over-year increase.