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
Father business cycles and digital consumers are forcing enterprises to respond faster to customer needs and competitive demands. Successful integration of DevOps and Agile development will be key for business success in today’s digital economy. In his session at DevOps Summit, Pradeep Prabhu, Co-Founder & CEO of Cloudmunch, covered the critical practices that enterprises should consider to seamlessly integrate Agile and DevOps processes, barriers to implementing this in the enterprise, and pr...
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, will discuss how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved effi...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
Data-as-a-Service is the complete package for the transformation of raw data into meaningful data assets and the delivery of those data assets. In her session at 18th Cloud Expo, Lakshmi Randall, an industry expert, analyst and strategist, will address: What is DaaS (Data-as-a-Service)? Challenges addressed by DaaS Vendors that are enabling DaaS Architecture options for DaaS
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.
The principles behind DevOps are not new - for decades people have been automating system administration and decreasing the time to deploy apps and perform other management tasks. However, only recently did we see the tools and the will necessary to share the benefits and power of automation with a wider circle of people. In his session at DevOps Summit, Bernard Sanders, Chief Technology Officer at CloudBolt Software, explored the latest tools including Puppet, Chef, Docker, and CMPs needed to...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
Advances in technology and ubiquitous connectivity have made the utilization of a dispersed workforce more common. Whether that remote team is located across the street or country, management styles/ approaches will have to be adjusted to accommodate this new dynamic. In his session at 17th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., focused on the challenges of managing remote teams, providing real-world examples that demonstrate what works and what do...
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
In most cases, it is convenient to have some human interaction with a web (micro-)service, no matter how small it is. A traditional approach would be to create an HTTP interface, where user requests will be dispatched and HTML/CSS pages must be served. This approach is indeed very traditional for a web site, but not really convenient for a web service, which is not intended to be good looking, 24x7 up and running and UX-optimized. Instead, talking to a web service in a chat-bot mode would be muc...