The following is a summary of the Adecoagro S.A. (AGRO) Q4 2023 Earnings Call Transcript:
Financial Performance:
Adecoagro reported Q4 gross sales of $400 million, up 5% YoY, and reached an annual gross sales record of $1.4 billion, reflecting a 7% increase.
Q4 adjusted EBITDA fell by 9% YoY to $96 million, marking a total adjusted EBITDA of $477 million for the year, a 10% YoY increase.
Net cash from operations in 2023 rose by 24% to $176 million.
Total cash cost rose by 6% YoY to $0.139 per pound of sugar, while the company managed to decrease its net debt by 26% to $503 million.
Business Progress:
Adecoagro expects to increase sugarcane crushing by around 5% leading to higher yields.
The company plans to maintain focus on sugar operation as it is currently more profitable than ethanol.
Plans on expanding plantings to fill capacity in MatoGrosso do Sul and to substantially increase biomethane production within the next four years.
The company's sustainability initiatives contributed significantly to its performance.
Adecoagro's Angelica mill facility in Brazil obtained the CORSIA certification, recognizing its ethanol for Sustainable Aviation Fuel production.
The company continues farming over 270,000 hectares of grains and rice, anticipating a significant recovery in adjusted EBITDA in 2024.
Investments in rice and dairy businesses are expected to yield promising results.
More details: Adecoagro IR
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