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Earnings Call Summary | Adecoagro(AGRO.US) Q1 2024 Earnings Conference

Futu News ·  May 18 06:35  · Conference Call

The following is a summary of the Adecoagro S.A. (AGRO) Q1 2024 Earnings Call Transcript:

Financial Performance:

  • Adecoagro reported a consolidated adjusted EBITDA of $90 million for Q1 2024, consistent with the previous year.

  • The firm saw a 3% YoY increase in gross sales, totaling $254 million, propelled by an increase in sugar cane crush and a significant rise in the selling price of rice.

  • The decline in the sugar, ethanol, and energy business was compensated by the strong performance in farming operations.

  • Net debt decreased by 23% YoY, standing at $639 million.

  • Expansion CapEx stood at $29 million for the quarter, with major investments in sugarcane plantations in Brazil and their biogas unit.

Business Progress:

  • The sugar, ethanol, and energy segment achieved record first-quarter figures due to expansion plantings in Brazil.

  • All three operating segments in farming (crops, rice, and dairy) performed well, resulting in significant yield recovery.

  • The company approved a total cash dividend distribution of $35 million and has repurchased 2.6 million shares, aligning with its distribution policy.

  • Conforming to business strategy, Adecoagro is expanding its footprint in Argentina and Uruguay.

  • The company expects around a 5% increase in sugarcane crushing over the next year, evidencing growth in the sector.

  • Investment in projects like the Viterra acquisition continues, and improvements are expected in other sectors like dairy and processing.

  • The company is open to exceeding their distribution policy and allotting more than the required amount through buybacks, under certain circumstances.

More details: Adecoagro IR

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.

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