Welcome!

News Feed Item

Adecoagro recorded Adjusted EBITDA of $66.5 million in 4Q13, driving 2013 Adjusted EBITDA to $180.7 million

LUXEMBOURG, March 20, 2014 /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 fourth quarter of 2013.

Main highlights for the period:

Financial & Operational Highlights

  • In the 2013 fiscal year, Adecoagro recorded an Adjusted EBITDA of $180.7 million, 28.4% higher than that of 2012. Adjusted EBITDA margin in 2013 reached 28.9% compared to 23.8% in 2012.
  • In 4Q13, Adjusted EBITDA was $66.5 million with an Adjusted EBITDA margin of 42.1%, compared to $68.5 million and 40.0% in 4Q12, respectively.
  • The Farming and Land Transformation businesses' Adjusted EBITDA in 4Q13 was 38.5 million, 17.6% higher than 4Q12. This increase is mainly explained by: (i) higher rice yields and white rice prices; (ii) an increase in cow productivity coupled with higher milk prices in the dairy business; and (iii) the sale of the San Martin and San Agustin farms which generated a $21.3 million gain in 4Q13 compared to a $19.4 million gain in 4Q12.
    On an annual basis, Adjusted EBITDA grew by 29.6%, from $68.6 million in 2012 to $88.9 million mainly driven by: (i) operational and financial performance in the dairy and rice businesses; (ii) gains generated from our commodity hedge position; and (iii) the sale of five developed farms generating $28.2 million gains in 2013 compared to $27.5 million the previous year.
  • In the Sugar, Ethanol and Energy business, the fourth quarter of 2013 marked the conclusion of the 2013/14 sugarcane harvest. Favorable weather during the quarter allowed our mills to increase the pace of milling, which reached a total of 1.8 million tons, marking a 28.7% growth quarter-over-quarter. Adjusted EBITDA of our Sugar, Ethanol and Energy business during 4Q13 was $35.2 million with an EBITDA margin of 33.9%, compared to $42.3 million and 43.2% in 4Q12, respectively. This reduction was mainly driven by: (i) 9.2% lower TRS content as a result of the frost which impacted the Center-South region of Brazil in mid July 2013; (ii) lower sugar and ethanol prices; and (iii) the commercial strategy to carry sugar and ethanol inventories into the inter-harvest season to capture higher prices, postponing sales and margins to 1Q14.
    On an annual basis, Adjusted EBITDA in 2013 totaled $115.2 million, 18.2% above 2012. Adjusted EBITDA margin during the period expanded to 38.8% from 36.2%. The improvement in financial performance was primarily driven by a 43.0% increase in cane milling, resulting from (i) a 16.0% expansion of our sugarcane plantation, (ii) the ramp up of the Ivinhema mill which increased our nominal crushing capacity by 2.0 million tons, and (iii) a 4.6% increase in sugarcane yields. The growth in crushing and production was partially offset by: (i) a 5.4% reduction in TRS content; (ii) lower sugar and ethanol prices throughout the year; and (iii) our commercial strategy to increase year-end sugar and ethanol inventories by 58.6% and 45.5% respectively, as explained above.
  • Consolidated Net Income in 2013 totaled a loss of $25.8 million, compared to a $9.3 million gain in 2012. Despite the 28.5% growth in Adjusted EBITDA, the net loss is mainly explained by: (i) a $55.7 million non-cash loss generated by the mark-to-market of our long term biological assets (primarily sugarcane); (ii) a 19.0 million loss resulting from the mark-to-market of currency derivatives used to hedge future US dollar inflows generated by our forward sugar sales; (iii) a $25.9 million increase in accrued interest expenses as a result of lower interest income, and higher interest expenses resulting from an increase in oustanding debt and lower capitalization of interests related to growth projects; and (iv) a $23.6 million foreign exchange loss, generated by the impact of the depreciation of the Brazilian Reais and Argentine Peso on our outsanding dollar-denominated debt.

Strategy Execution

  • Farm Sales: During the fourth quarter, Adecoagro successfully sold the San Agustin and San Martin farms. The San Agustin farm was sold for $17.5 million, representing a 19% premium over the latest Cushman and Wakefield independent appraisal. The transaction generated $14.9 million of Adjusted EBITDA and resulted in an IRR of 20.3%.  The San Martin farm was sold for $7.8 million, representing a 15% premium over Cushman and Wakefield. The transaction generated $6.3 million of Adjusted EBITDA and resulted in an IRR of 34%.
    In aggregate, during 2013 Adecoagro monetized five farms or 14.2 thousand hectares of its developed land portfolio. All farms were sold at premiums to the Cushman & Wakefield independent appraisal dated September 30, 2013 and generated in aggregate $59.4 million dollars of cash proceeds and $28.2 million of Adjusted EBITDA.
  • Sugar, Ethanol & Energy Expansion: The construction of the first phase of the Ivinhema mill was completed during the beginning of 2013 on schedule and budget. Ivinhema's milling operations commenced on April 25, 2013, with 2.0 million tons of nominal crushing capacity, generating important synergies and efficiencies with the Angelica mill.
    We are currently commencing the construction of the second phase of Ivinhema, which will expand milling capacity to 5.0 million tons per year by 2015, rather than 4.0 million tons as originally planned. The enlargement of Phase 2 will allow Ivinhema to enhance operational efficiencies and economies of scale, improving operating margins and accelerating free cash flow generation.
    Phase 2 will consist of expanding the milling equipment, building a new fluidized bed boiler, 2 new electrical generators and expanding the sugar factory and ethanol distillery. Annual production is expected to increase to 300,000 tons of sugar, 240,000 cubic meters of ethanol and 360,000 MWh of energy exports. Total capital expenditure is estimated at BRL 583 million.
  • Share Repurchase Program: On September 23, 2013, Adecoagro announced that its Board of Directors had authorized the implementation of a share repurchase program for up to 5% of the outstanding shares over the next 12-months. As of the date of this report, Adecoagro repurchased a total of 2.3 million shares or 1.9% of shares outstanding.

To read the full 4Q13 earnings release, please access ir.adecoagro.com. A conference call to discuss 4Q13 results will be held tomorrow with live webcast through the internet:

English Conference Call
Mar 21, 2014
11 a.m. (US EST)
12 p.m. Buenos Aires
12 p.m. Sao Paulo
4 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: [email protected] 
Tel: +54 (11) 4836-8651

About Adecoagro:

Adecoagro is a leading agricultural company in South America. Adecoagro owns over 269 thousand hectares of farmland and several industrial facilities spread across the most productive regions of Argentina, Brazil and Uruguay, where it produces over 1.3 million tons of agricultural products including corn, wheat, soybeans, rice, dairy products, sugar, ethanol and electricity among others.

SOURCE Adecoagro S.A.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2016 Silicon Valley. The 6thInternet of @ThingsExpo will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Early adopters of IoT viewed it mainly as a different term for machine-to-machine connectivity or M2M. This is understandable since a prerequisite for any IoT solution is the ability to collect and aggregate device data, which is most often presented in a dashboard. The problem is that viewing data in a dashboard requires a human to interpret the results and take manual action, which doesn’t scale to the needs of IoT.
When building large, cloud-based applications that operate at a high scale, it’s important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. “Fly two mistakes high” is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Lee...
Continuous testing helps bridge the gap between developing quickly and maintaining high quality products. But to implement continuous testing, CTOs must take a strategic approach to building a testing infrastructure and toolset that empowers their team to move fast. Download our guide to laying the groundwork for a scalable continuous testing strategy.
Much of IT terminology is often misused and misapplied. Modernization and transformation are two such terms. They are often used interchangeably even though they mean different things and have very different connotations. Indeed, it is somewhat safe to assume that in IT any transformative effort is likely to also have a modernizing effect, and thus, we can see these as levels of improvement efforts. However, many businesses are being led to believe if they don’t transform now they risk becoming ...
"We provide DevOps solutions. We also partner with some key players in the DevOps space and we use the technology that we partner with to engineer custom solutions for different organizations," stated Himanshu Chhetri, CTO of Addteq, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
What does it look like when you have access to cloud infrastructure and platform under the same roof? Let’s talk about the different layers of Technology as a Service: who cares, what runs where, and how does it all fit together. In his session at 18th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, an IBM company, spoke about the picture being painted by IBM Cloud and how the tools being crafted can help fill the gaps in your IT infrastructure.
CenturyLink has announced that application server solutions from GENBAND are now available as part of CenturyLink’s Networx contracts. The General Services Administration (GSA)’s Networx program includes the largest telecommunications contract vehicles ever awarded by the federal government. CenturyLink recently secured an extension through spring 2020 of its offerings available to federal government agencies via GSA’s Networx Universal and Enterprise contracts. GENBAND’s EXPERiUS™ Application...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
As companies gain momentum, the need to maintain high quality products can outstrip their development team’s bandwidth for QA. Building out a large QA team (whether in-house or outsourced) can slow down development and significantly increases costs. This eBook takes QA profiles from 5 companies who successfully scaled up production without building a large QA team and includes: What to consider when choosing CI/CD tools How culture and communication can make or break implementation
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...