Adecoagro S.A.: Adjusted EBITDA in 2024 was $444 million and NCFO $161 million. Crushing volume and sugar production at all-time record. $102 million in shareholder distribution.
Adecoagro (NYSE: AGRO) reported its 2024 financial results with an Adjusted EBITDA of $444.3 million, down 6.8% year-over-year, and Net Cash Flow from Operations of $160.9 million, declining 8.5%. The company achieved record results in Rice and Dairy businesses, along with operational records in Sugar, Ethanol & Energy.
Key operational highlights include an all-time crushing record of 12.8 million tons and record sugar production. The company distributed $101.9 million to shareholders in 2024 through a $35 million cash dividend and $66.9 million in share repurchases, representing a 9.4% distribution yield.
On February 14, 2025, Tether Investments submitted an unsolicited non-binding proposal to acquire 51% of Adecoagro's outstanding shares at $12.41 per share. The company has entered into an Exclusivity Letter for further negotiations.
Adecoagro (NYSE: AGRO) ha riportato i risultati finanziari per il 2024 con un EBITDA rettificato di 444,3 milioni di dollari, in calo del 6,8% rispetto all'anno precedente, e un Flusso di Cassa Netto dalle Operazioni di 160,9 milioni di dollari, in diminuzione dell'8,5%. L'azienda ha ottenuto risultati record nei settori del riso e dei latticini, insieme a risultati operativi record in zucchero, etanolo ed energia.
I principali punti salienti operativi includono un record di frantumazione di tutti i tempi di 12,8 milioni di tonnellate e una produzione di zucchero da record. L'azienda ha distribuito 101,9 milioni di dollari agli azionisti nel 2024 attraverso un dividendo in contante di 35 milioni di dollari e riacquisti di azioni per 66,9 milioni di dollari, rappresentando un rendimento della distribuzione del 9,4%.
Il 14 febbraio 2025, Tether Investments ha presentato una proposta non vincolante e non richiesta per acquisire il 51% delle azioni in circolazione di Adecoagro a 12,41 dollari per azione. L'azienda ha firmato una Lettera di Esclusività per ulteriori negoziazioni.
Adecoagro (NYSE: AGRO) reportó sus resultados financieros de 2024 con un EBITDA ajustado de 444,3 millones de dólares, una disminución del 6,8% en comparación con el año anterior, y un Flujo de Caja Neto de Operaciones de 160,9 millones de dólares, que disminuyó un 8,5%. La empresa logró resultados récord en los negocios de arroz y lácteos, junto con récords operativos en azúcar, etanol y energía.
Los aspectos operativos clave incluyen un récord histórico de trituración de 12,8 millones de toneladas y producción de azúcar récord. La empresa distribuyó 101,9 millones de dólares a los accionistas en 2024 a través de un dividendo en efectivo de 35 millones de dólares y recompras de acciones por 66,9 millones de dólares, lo que representa un rendimiento de distribución del 9,4%.
El 14 de febrero de 2025, Tether Investments presentó una propuesta no solicitada y no vinculante para adquirir el 51% de las acciones en circulación de Adecoagro a 12,41 dólares por acción. La empresa ha firmado una Carta de Exclusividad para futuras negociaciones.
Adecoagro (NYSE: AGRO)는 2024년 재무 결과를 발표하며 조정된 EBITDA가 4억 4,430만 달러로 전년 대비 6.8% 감소했으며, 운영에서의 순현금흐름은 1억 6,090만 달러로 8.5% 감소했다고 보고했습니다. 회사는 쌀 및 유제품 사업에서 기록적인 성과를 달성했으며, 설탕, 에탄올 및 에너지 부문에서도 운영 기록을 세웠습니다.
주요 운영 하이라이트에는 역대 최대 분쇄 기록인 1,280만 톤과 설탕 생산 기록이 포함됩니다. 회사는 2024년 주주에게 1억 1,900만 달러를 배당금 3,500만 달러와 6,690만 달러의 자사주 매입을 통해 배포하여 9.4%의 배당 수익률을 나타냈습니다.
2025년 2월 14일, Tether Investments는 51%의 Adecoagro 발행 주식을 주당 12.41달러에 인수하겠다는 비공식적 비구속 제안을 제출했습니다. 회사는 추가 협상을 위한 독점 계약서를 체결했습니다.
Adecoagro (NYSE: AGRO) a publié ses résultats financiers pour 2024 avec un EBITDA ajusté de 444,3 millions de dollars, en baisse de 6,8% par rapport à l'année précédente, et un Flux de Trésorerie Net d'Exploitation de 160,9 millions de dollars, en baisse de 8,5%. L'entreprise a atteint des résultats record dans les secteurs du riz et des produits laitiers, ainsi que des records opérationnels dans le sucre, l'éthanol et l'énergie.
Les points saillants opérationnels comprennent un record historique de broyage de 12,8 millions de tonnes et une production de sucre record. L'entreprise a distribué 101,9 millions de dollars aux actionnaires en 2024 par le biais d'un dividende en espèces de 35 millions de dollars et de rachats d'actions pour 66,9 millions de dollars, représentant un rendement de distribution de 9,4%.
Le 14 février 2025, Tether Investments a soumis une proposition non sollicitée et non contraignante pour acquérir 51% des actions en circulation d'Adecoagro à 12,41 dollars par action. L'entreprise a signé une Lettre d'Exclusivité pour des négociations ultérieures.
Adecoagro (NYSE: AGRO) hat seine finanziellen Ergebnisse für 2024 mit einem bereinigten EBITDA von 444,3 Millionen Dollar veröffentlicht, was einem Rückgang von 6,8% im Vergleich zum Vorjahr entspricht, und einem Netto-Cashflow aus dem operativen Geschäft von 160,9 Millionen Dollar, was einem Rückgang von 8,5% entspricht. Das Unternehmen erzielte Rekordwerte in den Bereichen Reis und Milchprodukte sowie operative Rekorde in Zucker, Ethanol und Energie.
Wichtige betriebliche Höhepunkte umfassen einen allerhöchsten Zerkleinerungsrekord von 12,8 Millionen Tonnen und eine Rekordproduktion von Zucker. Das Unternehmen hat 2024 insgesamt 101,9 Millionen Dollar an die Aktionäre ausgeschüttet, darunter eine Barausschüttung von 35 Millionen Dollar und Aktienrückkäufe in Höhe von 66,9 Millionen Dollar, was einer Ausschüttungsrendite von 9,4% entspricht.
Am 14. Februar 2025 reichte Tether Investments ein unverlangtes, nicht bindendes Angebot ein, um 51% der ausstehenden Aktien von Adecoagro zu einem Preis von 12,41 Dollar pro Aktie zu erwerben. Das Unternehmen hat einen Exklusivitätsbrief für weitere Verhandlungen unterzeichnet.
- Record operational performance with 12.8 million tons crushing volume
- Strong shareholder returns with $101.9 million distribution (9.4% yield)
- Potential acquisition offer at $12.41 per share, premium to market price
- Cash cost reduction of 8.4% year-over-year to 12.7 cts/lb
- Healthy balance sheet with Net Debt/EBITDA at 1.2x
- Adjusted EBITDA declined 6.8% to $444.3 million
- Net Cash Flow from Operations decreased 8.5% to $160.9 million
- Lower net sales in Q4 due to reduced volumes and lower sugar prices
- Decreased prices for key commodities (soybean, corn, wheat)
- Higher costs in US dollar terms impacting margins
Insights
Adecoagro's 2024 financial results reflect solid performance despite challenging market conditions. The company delivered $444.3 million in Adjusted EBITDA (
The operational achievements are impressive - all-time records in crushing volume and sugar production demonstrate effective operational execution despite adverse weather conditions. This operational excellence helped mitigate pricing pressures across multiple product categories.
Shareholder returns are particularly notable, with $101.9 million distributed in 2024 (equivalent to a
The unsolicited acquisition proposal from Tether Investments at
Adecoagro's business diversification (Sugar/Ethanol/Energy, Rice, Dairy, Crops) provides resilience, as demonstrated by record results in Rice and Dairy offsetting challenges elsewhere. The company's strategic inventory management, particularly carrying over
Adecoagro's operational achievements in 2024 underscore their capabilities in agricultural commodity production despite sector-wide challenges. The crushing record of 12.8 million tons despite dry weather conditions demonstrates effective agronomic management and operational resilience.
The strategic pivot toward sugar production (
Cost efficiency remains a competitive advantage, with sugar cash costs decreasing
The company's strategy of maximizing higher-value products in Rice and Dairy segments demonstrates vertical integration advantages and market responsiveness. Their ability to conduct opportunistic rice sales when global and domestic supply was exemplifies market timing expertise.
The $104.1 million expansion capex investment across operations indicates continued commitment to growth despite short-term headwinds. This ongoing capital deployment, particularly in enhancing production efficiencies while maintaining sustainability commitments, positions Adecoagro to potentially outperform when commodity prices recover.
Main highlights for the period:
- Adjusted EBITDA amounted to
$444.3 million 6.8% lower than the previous year. We achieved record results in our Rice and Dairy businesses, and marked operational records in our Sugar, Ethanol & Energy business. However, results were negatively impacted by a year-over-year loss in the mark-to-market of our biological assets in our Sugar, Ethanol & Energy business, coupled with an uneven year-over-year comparison in our Crops business due to farm sales conducted throughout both periods. - NCFO in 2024 stood at
$160.9 million 8.5% year-over-year decrease, resulting in a minimum of$64.4 million $522.2 million $104.1 million
Full Year Results Overview:
- In 2024, we delivered solid results, in spite of the challenging price scenario for most of our products and the adverse weather conditions that impacted some of our operations. This was possible thanks to the investments we have made throughout the years and our continuous focus on enhancing efficiencies in every stage of the value chain, while focusing on being the lowest cost producer. The commercial strategy in each of our operations enabled us to profit from opportunities that arose in both the export and domestic markets, as well as to leverage our storage capacity to build stocks. For example: (i) we conducted rice sales when both global and domestic supply was limited; (ii) we maximized production of fluid milk for our consumer brand in
Argentina given its attractive marginal contribution and our growing presence in the local market; and (iii) we carried over ethanol stocks to profit from better prices in the next quarters. - Consequently, Adecoagro's Adjusted EBITDA amounted to
$444.3 million $160.9 million $101.9 million $31.5 million 9.4% distribution yield. Expansion capex amounted to$104.1 million $522.2 million
Sugar, Ethanol & Energy business:
- Adjusted EBITDA reached
$105.3 million 20.4% year-over-year increase, whereas in 2024 it amounted to$364.2 million 8.0% lower than the previous year.
(+/-) Annual crushing record of 12.8 million tons despite dry weather. Quarterly crushing down12.0% year-over-year on lower yields.
(+) Record sugar production and mix (55% in 4Q24 /52% in 2024). Despite a recovery in domestic ethanol prices, we are carrying over31% of our 2024 production to profit from higher expected prices.
(+) Cash cost down8.4% year-over-year to 12.7 cts/lb due to better cost dilution, higher tax recovery on higher ethanol sales and weaker FX, among others.
(-/+) Lower net sales in 4Q24 on lower volumes sold and lower sugar prices in US dollar terms. Annual sales in line with 2023 on higher selling volumes due to higher production.
(-) Year-over-year loss in biological assets (harvested cane) due to lower Consecana prices versus 2023.
Farming business:
- Adjusted EBITDA amounted to
$3.8 million 72.4% year-over-year decline, whereas for 2024 it reached$103.0 million 19.5% higher year-over-year, totaling$87.9 million
(+) Year-over-year gains in the mark-to-market of our biological asset and agricultural produce for our Rice operations (higher prices and area) and Crops (higher yields and area).
(+/-) Higher prices for Dairy and Rice's higher value-added products, despite the latter presenting a downward trend by year-end, as expected.
(+/-) One-off events: Sale of La Pecuaria farm ($15.0 million $29.8 million
(-) Lower prices for soybean, corn and wheat.
(-) Higher costs in US dollar terms.
Remarks
2024 Shareholder Distribution
- During 2024, we distributed a total of
$101.9 million 58% of the Adjusted Free Cash Flow from Operations (NCFO) generated in 2023. This represents a distribution yield of9.4% , and$31.5 million - Cash dividends:
$35 million $17.5 million $0.34 - Share repurchases: 6.5 million shares repurchased (
6.2% of the company's equity) at an average price of$10.22 $66.9 million
- Cash dividends:
2025 Shareholder Distribution
• In 2024, we generated
• During the first two months of the year, we repurchased 1.1 million shares (
Unsolicited non-binding proposal from Tether Investments S.A. de C.V.
- On February 18, 2025, the Company announced that its Board of Directors received an unsolicited non-binding proposal from Tether Investments S.A. de C.V. ("Tether") dated February 14, 2025, to acquire outstanding Common Shares of the Company at a price of
$12.41 51% of the outstanding Common Shares of the Company. The Company decided to engage legal counsel and a financial advisor to negotiate and further assist the Board in its evaluation of the proposal. - On February 25, 2025, the Company issued a press release announcing that it is engaging in discussions with Tether on the terms and conditions of the proposal received on February 14th, 2025. The Company has entered into an Exclusivity Letter to facilitate further negotiations with Tether. No assurances can be given that a definitive agreement will be entered into, that any transaction will be consummated, or the timing, terms or conditions of any such transaction.
- For more information, please refer to our 6-K Press Releases available on our Investor Relations' website (www.ir.adecoagro.com).
Non-Gaap Financial Measures: For a full reconciliation of non-gaap financial measures please refer to page 27 of our 4Q24 Earnings Release found on Adecoagro's website (ir.adecoagro.com)
Forward-Looking Statements: This press release contains forward-looking statements that are based on our current expectations, assumptions, estimates and projections about us and our industry. These forward-looking statements can be identified by words or phrases such as "anticipate," "forecast", "believe," "continue," "estimate," "expect," "intend," "is/are likely to," "may," "plan," "should," "would," or other similar expressions.
The forward-looking statements included in this press release relate to, among others: (i) our business prospects and future results of operations; (ii) weather and other natural phenomena; (iii) developments in, or changes to, the laws, regulations and governmental policies governing our business, including limitations on ownership of farmland by foreign entities in certain jurisdictions in which we operate, environmental laws and regulations; (iv) the implementation of our business strategy; (v) the correlation between petroleum, ethanol and sugar prices; (vi) our plans relating to acquisitions, joint ventures, strategic alliances or divestitures, and to consolidate our position in different businesses; (vii) the efficiencies, cost savings and competitive advantages resulting from acquisitions; (viii) the implementation of our financing strategy, capital expenditure plan and expected shareholder distributions; (ix) the maintenance of our relationships with customers; (x) the competitive nature of the industries in which we operate; (xi) the cost and availability of financing; (xii) future demand for the commodities we produce; (xiii) international prices for commodities; (xiv) the condition of our land holdings; (xv) the development of the logistics and infrastructure for transportation of our products in the countries where we operate; (xvi) the performance of the South American and world economies; (xvii) the relative value of the Brazilian Reais, the Argentine Peso, and the Uruguayan Peso compared to other currencies; and (xviii) the proposed tender offer by Tether.
These forward-looking statements involve various risks and uncertainties. Although we believe that our expectations expressed in these forward-looking statements are reasonable, our expectations may turn out to be incorrect. Our actual results could be materially different from our expectations. In light of the risks and uncertainties described above, the estimates and forward-looking statements discussed in this press release might not occur, and our future results and our performance may differ materially from those expressed in these forward-looking statements due to, inclusive, but not limited to, the factors mentioned above. Because of these uncertainties, you should not make any investment decision based on these estimates and forward-looking statements.
The forward-looking statements made in this press release relate only to events or information as of the date on which the statements are made in this press release. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events.
No Offer or Solicitation; Additional Information and Where to Find It
The tender offer referenced in this press release has not yet commenced. This announcement is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell securities. The solicitation and offer to buy the Company's securities will only be made pursuant to an Offer to Purchase and related tender offer materials. At the time the tender offer is commenced, Tether will be required to file a tender offer statement on Schedule TO and thereafter the Company will file a Solicitation/Recommendation Statement on Schedule 14D-9 with the SEC with respect to the tender offer. THE TENDER OFFER MATERIALS (INCLUDING AN OFFER TO PURCHASE, A RELATED LETTER OF TRANSMITTAL AND CERTAIN OTHER TENDER OFFER DOCUMENTS) AND THE SOLICITATION/RECOMMENDATION STATEMENT ON SCHEDULE 14D-9 WILL CONTAIN IMPORTANT INFORMATION. THE COMPANY'S STOCKHOLDERS ARE URGED TO READ THESE DOCUMENTS CAREFULLY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION THAT HOLDERS OF THE COMPANY'S SECURITIES SHOULD CONSIDER BEFORE MAKING ANY DECISION REGARDING TENDERING THEIR SECURITIES. These materials will be made available to the Company's stockholders at no expense to them. The tender offer materials and the Solicitation/Recommendation Statement will be made available for free at the SEC's website at www.sec.gov. Copies of the documents filed by the Company with the SEC by will be available free of charge on the Company's internet website at www.adecoagro.com or by contacting the Company's investor relations department at ir@adecoagro.com.
To read the full 4Q24 earnings release, please access ir.adecoagro.com. A conference call to discuss 4Q24 results will be held on March 14, 2025, with a live webcast through the internet:
Conference Call
March 14, 2025
8 a.m. US EST
9 a.m.
9 a.m. São Paulo
1 p.m.
To participate, please register at the link
Investor Relations Department
Emilio Gnecco
CFO
Victoria Cabello
IRO
Email: ir@adecoagro.com
About Adecoagro:
Adecoagro is a leading sustainable production company in
View original content:SOURCE Adecoagro S.A.
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