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
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