LUXEMBOURG, Nov. 13, 2012 /PRNewswire/ -- Adecoagro S.A.
(NYSE: AGRO, Bloomberg: AGRO US,
Reuters: AGRO.K), one of the leading agricultural companies in
South America, announced today its
results for the third quarter of 2012. Main highlights for the
period:
- In 3Q12, Adecoagro recorded Adjusted EBITDA of $40.7 million and an Adjusted EBITDA margin of
24.7%.
- Adecoagro's Sugar, Ethanol and Energy business Adjusted EBITDA
in 3Q12 was $46.4 million, 8.3%
higher than 3Q11. Adjusted EBITDA margin reached a record high of
60.6%. Good weather conditions allowed the company to increase the
pace of its harvest activities and crush 19.9% more sugarcane than
in 3Q11. Dry weather also had a positive impact on sugar content in
cane (TRS), which was 3.5% higher in 3Q12 than in 3Q11. If normal
weather conditions persist during the fourth quarter, we expect to
compensate for the lower year-to-date sugarcane crushing,
production volumes and financial performance, resulting from the
delayed start of milling due to challenging weather conditions in
2Q12.
- The Farming and Land Transformation businesses' Adjusted EBITDA
in 3Q12 was $0.7 million,
$14.9 million below 3Q11. Most of our
crops are harvested during the first and second quarter. Adjusted
EBITDA for the Farming business in the third quarter is almost
always lower than in other quarters and is primarily derived from
the mark-to-market of grain inventories and commodity hedge
positions. Unrealized hedge results account for $13.9 million of the lower year-over-year
underperformance. Adecoagro has successfully begun the 2012/13 crop
season. Crop planting is advancing on schedule. Assuming normal
weather during the growth season and current-level commodity
prices, we expect to obtain attractive margins per hectare,
resulting in a profitable 2012/13 harvest year.
- Net income in 3Q12 was $(2.8)
million, $32.9 million less
than in 3Q11, which is mainly explained by: (i) a $14.0 million non-cash loss generated by the
mark-to-market of our long term biological assets, compared to a
$34.0 million gain generated in 3Q11;
and (ii) a $3.1 million unrealized
loss generated by the mark-to-market of our commodity hedge
position in 3Q12, compared to a $12.5
million gain generated in 3Q11. These negative effects were
partially offset by a $2.5 million
foreign exchange loss in 3Q12 compared to a $22.8 million loss in 3Q11.
- As of September 30, 2012, Cushman
& Wakefield updated its independent appraisal of Adecoagro's
farmland. Adecoagro's 285,787 hectares were valued at $938.0 million. Adjusted by the sale of La
Alegria and San Jose farms in November
2011 and June 2012
respectively, and the acquisition of La Canada farm in November 2011, the appraised value of our
farmland portfolio increased $49.3
million or 5.6%, since September 30,
2011.
This value creation is driven mainly by: (i) the transformation
of underutilized or undermanaged cattle land into high yielding
crop and rice land; (ii) the ongoing transformation and
productivity improvement of all our farmland through our
sustainable farming model focused on cutting edge technology and
best practices, such as, no-till farming, crop rotations, balanced
fertilization, integrated pest management and water use efficiency;
and (iii) the increase/decrease in farm margins driven by changes
in commodity and input prices.
These gains are not reflected in Adecoagro's financial
statements since the Company does not mark-to-market the value of
farmland assets on its balance sheet. However, land transformation
and appreciation are an important part of Adecoagro's business
strategy, and a component of the Company's total return on invested
capital.
- The construction of the first phase of the Ivinhema mill in
Mato Grosso do Sul is progressing
on schedule. The assembly of the boiler, mill, powerhouse with
generator and ethanol distillery have been completed.
Interconnections and assembly of pending mill parts and equipment
are expected to be completed mid-November. Ivinhema is expected to
undergo test runs as of the end of November and start commercial
milling operations at the beginning of the 2013 harvest, with a
nominal crushing capacity of 2 million tons of sugarcane. Capacity
will increase to 4 million tons in 2015 (phase II) and reach full
capacity of 6.3 million tons in 2017 (phase III).
The foregoing highlights are only a summary of our results for
the third quarter. You should read the full 3Q12 earnings release,
including a reconciliation of Adjusted EBITDA to IFRS, that is
available through our website at ir.adecoagro.com. A conference
call to discuss 3Q12 results will be held tomorrow with live
webcast through the internet:
English Conference Call
Nov 14th, 2012
11 a.m. (US EST)
1 p.m. Buenos Aires
2 p.m. Sao
Paulo
5 p.m. Luxembourg
Tel: (877) 317-6776
Participants calling from the US
Tel: +1 (412) 317-6776
Participants calling from other countries
Access Code: Adecoagro
Investor Relations Department
Charlie Boero Hughes
CFO
Hernan Walker
IR Manager
Email: ir@adecoagro.com
Tel: +54 (11)4836-8651
About Adecoagro:
Adecoagro is a leading agricultural company in South America. Adecoagro owns over 285
thousand hectares of farmland and several industrial facilities
spread across the most productive regions of Argentina, Brazil and Uruguay, where it produces over 1 million tons
of agricultural products including corn, wheat, soybeans, rice,
dairy products, sugar, ethanol and electricity among others.
SOURCE Adecoagro S.A.