Adjusted EBITDA of US$90.1 million. Solid grinding rhythm and normalization of agricultural yield. Cash dividend of US$35 million during 2024.

LUXEMBOURG, May 16, 2024 /PRNewswire/ — Adecoagro SA (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading company in sustainable production in South America, today announced its results for the first quarter ended in March 31. , 2024. The financial information contained in this press release is based on consolidated financial statements presented in US dollars and prepared in accordance with International Financial Reporting Standards (IFRS), except for non-IFRS measures. See page 22 for a definition and reconciliation to IFRS of the non-IFRS measures used in this earnings release.

Main highlights of the period:

• Gross sales were 2.6% higher in 1Q24 due to (i) increased sugarcane crushing, which allowed us to increase our sugar production and sell at solid prices; combined with (ii) increase in average sales prices in the Rice segment.

• Adjusted EBITDA was US$90.1 million, 1.1% above 1Q23, driven by superior performance from all three segments of our agricultural business. This, in turn, fully offset the reported decline in the Sugar, Ethanol and Energy business due to a year-over-year loss in the mark-to-market of our biological assets from a pricing perspective.

• Adjusted net profit in 1Q24 totaled US$23.3 million, 40.1% lower than the previous year.

• Net debt totaled US$639.2 million, a reduction of 23.0% year-on-year, while the net debt/Adjusted EBITDA LTM ​​ratio reached 1.3x, 0.6x lower than in 1Q23.

Sugar, Ethanol and Energy Business:

• Crushing volume totaled 2.2 million tons, an increase of 47% compared to the same period of the previous year and an all-time record for crushing in the 1Q, due to the greater availability of sugar cane. We diverted up to 49% to produce sugar, which was traded on average 48% above hydrated ethanol in Mato Grosso do Sul. In terms of ethanol, 91% of our production was hydrated ethanol given the active demand for this type of fuel, at the same time At the same time, we continued to take advantage of our storage capacity and transported more than 194 thousand m3 (69% higher than 1Q23) to the following quarters, to profit from the expected higher prices. Additionally, our unit production cost decreased by 9% YoY due to higher milled volume. However, results were negatively impacted by (i) an annual loss in mark-to-market of our biological assets due to lower sugar prices (sugar contracts #11) during 1Q24 compared to 1Q23, along with (ii ) higher shipping costs as we sell more sugar. Consequently, Adjusted EBITDA reached US$51.9 million in 1Q24, 32% lower than 1Q23.

Agricultural business:

• In 1Q24, Adjusted EBITDA for the Agricultural business totaled US$44.0 million, US$25.5 million higher than 1Q23. This was driven by superior performance across all three segments. Our Rice business showed an annual increase of US$ 19.4 million, mainly explained by (i) better campaign in terms of area, productivity and prices, leading to an annual gain of US$ 12.7 million in mark-to-market of our biological assets; combined with (ii) our presence in both the foreign and domestic markets, which allowed us to sell at attractive prices (US$433/ton above 1Q23), as we were the only rice producer with stocks available at a time when rice supply was limited. In the case of Harvests, the full recovery of productivity of our main grains was the main reason for the US$ 5.8 million increase in results compared to the same period of the previous year. In our Dairy business, Adjusted EBITDA was 5% higher than 1Q23 mainly due to lower feed costs (corn silage and soy pellets) as our own production recovered the lost volume.

The story continues

Comments

Distribution of shareholders in 2024

• Our Annual Shareholders’ Meeting held on April 17 approved a cash dividend distribution of US$35 million to be paid in two installments of US$17.5 million each. The first installment represents approximately $0.1682 per share and will be paid on May 29, 2024 to shareholders of the Company with a record date of May 14, 2024. The second installment will be paid on or about November 2024 in equal cash value.

• Additionally, year-to-date, we have invested $26.6 million to repurchase 2.6 million shares (2.4% of the company’s equity) under our existing share repurchase program, at an average price of $ 10.40 per share.

Sale of agricultural land at a premium for independent valuation

• In April 2024, we completed the sale of the La Pecuaria farm located in the province of Durazno, Uruguay, for a sale price of US$20.7 million (US$6,500/hectare) fully raised on the closing date. The transaction generated an Adjusted EBITDA of US$15.3 million, which will be recorded in our Crops segment in 2Q24.

Non-Gaap Financial Measures: For a complete reconciliation of non-GAAP financial measures, please see page 22 of our 1Q24 Earnings Release, found on the Adecoagro website (ir.adecoagro.com)

Forward-looking statements: This press release contains forward-looking statements 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”, “predict”, “believe”, “continue”, “estimate”, “expect”, “intend”, “is/is likely to”, “may” , “plan”, “should”, “would” or other similar expressions.

These forward-looking statements involve a number of risks and uncertainties. Although we believe that our expectations expressed in these forward-looking statements are reasonable, our expectations may prove to be incorrect. Our actual results may differ materially from our expectations. In light of the risks and uncertainties described above, the estimates and forward-looking statements discussed in this press release may not occur, and our future results and performance may differ materially from those expressed in these forward-looking statements due to, including, but not limited to, the factors mentioned above . Due to these uncertainties, you should not make any investment decisions based on these estimates and forward-looking statements.

The forward-looking statements made in this press release speak only to events or information as of the date 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 the statements are made or to reflect the occurrence of unanticipated events.

To read the full release of the 1Q24 results, visit ir.adecoagro.com. A conference call to discuss the 1Q24 results will be held on May 17, 2024, with a live webcast over the internet:

Conference call

May 17, 2024
11am EST US
12pm Buenos Aires
12pm São Paulo
5pm Luxembourg

To participate, register at link

Investor Relations Department

Emilio Gnecco
CFO

Victoria Cabello
RI

Email: ir@adecoagro.com

About Adecoagro:

Adecoagro is a leading company in sustainable production in South America. Adecoagro has 210.4 thousand hectares of agricultural land and several industrial facilities spread across the most productive regions of Argentina, Brazil and Uruguay, where it produces more than 2.8 million tons of agricultural products and more than 1 million MWh of renewable electricity.

Spin-off

See the original content:https://www.prnewswire.com/news-releases/adjusted-ebitda-of-90-1-million-solid-crushing-pace-and-farming-yield-normalization-35-million-cash-dividend-during- 2024–302148306.html

SOURCE Adecoagro SA

Source