Revenue and Profit - Revenue for the year ended December 31, 2024, was $1,518.9 million, an increase of 16.9% compared to $1,298.9 million in 2023[21] - Profit for the year was $92.1 million, a decrease of 59.3% from $226.7 million in 2023[21] - Basic earnings per share for 2024 was $0.900, down from $2.113 in 2023[21] - Total comprehensive income for the year was $237.2 million, an increase of 52.9% from $155.1 million in 2023[23] - Profit for the year 2023 was $226.291 million, while the profit for 2024 was $92.340 million[30][34] - Total comprehensive income for 2023 was $155.096 million, compared to $237.226 million for 2024[30][34] Assets and Liabilities - The Company's net assets balance was $1.4 billion as of December 31, 2024[13] - Total assets decreased from $3,164,894 thousand in 2023 to $3,114,888 thousand in 2024, a decline of approximately 1.58%[24] - Total liabilities decreased from $1,899,246 thousand in 2023 to $1,706,787 thousand in 2024, a reduction of approximately 10.14%[24] - Total shareholders' equity increased from $1,265,648 thousand in 2023 to $1,408,101 thousand in 2024, an increase of about 11.25%[24] - The Group's total liabilities as of December 31, 2024, were US$1.335 billion, including US$779.556 million in borrowings and US$342.030 million in lease liabilities[178] Cash Flow and Financing - The company reported a decrease in cash and cash equivalents from $339,781 thousand in 2023 to $211,244 thousand in 2024, a decline of approximately 37.87%[24] - The net cash generated from operating activities was $328,331 thousand in 2024, down from $434,907 thousand in 2023, a decrease of 25%[38] - The net cash used in financing activities was $274,000 thousand in 2024, compared to $208,743 thousand in 2023, indicating increased financing outflows[38] - The company incurred interest expenses of $24,629 thousand in 2024, a decrease from $55,476 thousand in 2023[38] - The Group's cash and cash equivalents as of December 31, 2024, totaled US$211.244 million[177] Expenses - General and administrative expenses increased to $103.9 million in 2024 from $70.3 million in 2023[21] - Total expenses for 2024 amounted to $1,346,503 thousand, reflecting a rise from $1,073,000 thousand in 2023[120] - Salaries and social security expenses increased to $214,547 thousand in 2024 from $177,098 thousand in 2023, reflecting a rise of 21.1%[123] - Selling expenses for 2024 were $153,482 thousand, compared to $129,092 thousand in 2023, indicating an increase of about 19%[104] Biological Assets and Agricultural Produce - The total aggregated fair value of the Company's level 3 biological assets was $239 million as of December 31, 2024[9] - Total biological assets increased to $293,945 thousand in 2024 from $228,037 thousand in 2023, representing a growth of 28.9%[166] - The initial recognition and changes in fair value of biological assets amounted to $143,081 thousand in 2024, compared to $87,858 thousand in 2023, marking a significant increase of 62.9%[162] - The fair value of agricultural produce at the point of harvest reached $578,085 thousand in 2024, up from $419,442 thousand in 2023, indicating a 37.9% increase[168] Financial Performance and Ratios - The Group's profit from operations attributable to equity holders of the parent for 2024 was $92,340 thousand, a decrease of 59% compared to $226,291 thousand in 2023[146] - The Group's diluted earnings per share for 2024 was $0.896, slightly down from $2.105 in 2023[148] - The Group's total borrowings decreased from $904,949 thousand in 2023 to $779,556 thousand in 2024, resulting in a gearing ratio of 0.36 compared to 0.42 in 2023[83] - The Group's interest rate risk management includes using floating-to-fixed interest rate swaps to mitigate cash flow interest rate risk[69] Market and Economic Conditions - Argentina's annual inflation rate was 117.8% in 2024, down from 211.4% in 2023, reflecting a decrease in inflationary pressure[47] - The official exchange rate of the Argentine Peso against the U.S. dollar increased by 27.7% in 2024, compared to a 356.3% increase in 2023[47] - A hypothetical 10% appreciation of the U.S. Dollar against the Brazilian real would have a significant impact on the Group's financial position, affecting the fair value of biological assets and agricultural produce prices[56] Risk Management - The Group's exposure to liquidity risks includes refinancing borrowings and ensuring availability of funding, with total liabilities amounting to $1.7 billion as of December 31, 2024[67] - The Group's credit risk is considered low due to defined trading limits and a large base of customers with a good credit history[75] - The Group's exposure to credit risk from trade receivables is detailed in Note 18, with no credit limits exceeded during the reporting periods[79] Strategic Initiatives - The company plans to continue expanding its market presence through strategic contracts for sugar, soybean, and corn[113] - The company is focusing on enhancing its product offerings and technological advancements in the agricultural sector[113]

Core Insights - Adecoagro (NYSE: AGRO) faces challenges beyond management effectiveness, emphasizing the importance of farmland stewardship, planting decisions, and operational efficiency in its sugar, ethanol, and energy (SEE) and farming operations [1] Company Analysis - The management of Adecoagro is crucial, but it is not the sole factor for success; effective land management and operational strategies are equally important [1]

LUXEMBOURG, Feb. 25, 2025 /PRNewswire/ -- Adecoagro S.A. (NYSE: AGRO) (the "Company"), a leading sustainable production company in South America, announces it is engaging in discussions with Tether Investments S.A. de C.V. ("Tether") on Tether's proposal to acquire outstanding Common Shares of the Company at a price of $12.41 per Common Share through a tender offer that would result in Tether collectively holding 51% of the outstanding Common Shares of the Company. The Company has entered into an Exclusivit ...

LUXEMBOURG, Feb. 18, 2025 /PRNewswire/ -- Adecoagro S.A. (NYSE: AGRO) (the "Company"), a leading sustainable production company in South America, announces its Board of Directors received an unsolicited non-binding proposal from Tether Investments S.A. de C.V. ("Tether") on February 14, 2025 to acquire outstanding Common Shares of the Company at a price of $12.41 per Common Share through a tender offer that would result in Tether collectively holding 51% of the outstanding Common Shares of the Company. Teth ...

Company Performance - Adecoagro (AGRO) closed at $9.75, with a daily increase of +1.04%, outperforming the S&P 500's gain of 0.67% [1] - Over the past month, Adecoagro's shares have decreased by 1.83%, lagging behind the Consumer Staples sector's gain of 1.72% and the S&P 500's gain of 2.07% [2] Analyst Estimates - Recent changes in analyst estimates for Adecoagro are crucial as they indicate shifts in near-term business trends, with positive revisions suggesting optimism about the company's outlook [3] - The Zacks Rank system, which incorporates estimate changes, provides actionable ratings, with a track record of 1 stocks yielding an average annual return of +25% since 1988 [4][5] Valuation Metrics - Adecoagro is currently trading at a Forward P/E ratio of 7.37, which is below the industry average of 11.02, indicating a valuation discount [6] - The company has a PEG ratio of 1.28, compared to the Agriculture - Operations industry's average PEG ratio of 1.56, suggesting a favorable growth outlook relative to its valuation [6] Industry Context - The Agriculture - Operations industry, part of the Consumer Staples sector, has a Zacks Industry Rank of 174, placing it in the bottom 31% of over 250 industries [7] - Research indicates that industries in the top 50% of the Zacks Industry Rank outperform those in the bottom half by a factor of 2 to 1 [7]

In the latest market close, Adecoagro (AGRO) reached $9.49, with a +0.32% movement compared to the previous day. The stock's change was more than the S&P 500's daily loss of 1.46%. Elsewhere, the Dow saw an upswing of 0.65%, while the tech-heavy Nasdaq depreciated by 3.07%.Shares of the producer of agricultural products and renewable energy witnessed a loss of 0.11% over the previous month, beating the performance of the Consumer Staples sector with its loss of 1.99% and underperforming the S&P 500's gain o ...

Industry Overview - The Zacks Agriculture – Operations industry faces challenges such as fluctuating commodity prices, rising input costs, trade uncertainties, and growing operational expenses, which affect productivity, profitability, and long-term sustainability [1] - The industry is set to benefit from innovation and rising demand for healthy products, with investments in acquisitions, joint ventures, and expansions expected to boost growth [2] - The industry comprises companies involved in producing, transporting, storing, processing, and distributing agricultural commodities, as well as distributing ingredients to other parts of the agriculture industry [3] - Activities include traditional farming of crops (corn, soybean, wheat, cotton) and livestock/poultry products (meat, dairy, eggs), which are sold at grocery stores, exported, or used as feedstock for other industries [4] Factors Shaping the Industry - Agricultural exports are projected to decline by 2% to $169.5 billion in fiscal 2025, driven by lower unit values for soybeans, corn, and cotton, and reduced beef volumes, while imports are projected to reach $212 billion, widening the trade deficit to $42.5 billion [5] - Rising costs due to fluctuating commodity prices, inflation-driven input increases, and trade uncertainties are squeezing profitability, with companies adopting pricing strategies and improving supply-chain resilience to combat these pressures [6] - Companies are managing higher SG&A expenses driven by performance-related compensation, project costs, and technology investments, which may continue to weigh on profitability [7] Industry Trends and Innovations - Rising consumer demand for healthier food is driving a shift toward organic farming practices, reduced use of chemicals and pesticides, and innovations in food processing and grain-handling techniques [8] - Alternative protein consumption is expected to rise as healthy eating trends expand, with industry players prioritizing productivity and innovation to align with food security and health trends [9] - Companies are investing in acquisitions and joint ventures to create high-quality ingredients and solutions that meet the growing demand for healthy products [10] Industry Performance and Valuation - The Zacks Agriculture – Operations industry carries a Zacks Industry Rank 151, placing it in the bottom 40% of Zacks industries, indicating dull near-term prospects due to a negative aggregate earnings outlook [11][12][13] - The industry has underperformed the S&P 500, with stocks collectively falling 3.4% in a year against the S&P 500's 25.6% growth, while the Zacks Consumer Staples sector declined 3.6% [14] - The industry is currently trading at a forward 12-month P/E ratio of 13.63X, compared to the S&P 500's 22.23X and the sector's 16.25X, with a five-year range of 10.91X to 17.3X [15] Key Companies in Focus - **Mission Produce (AVO)**: Engaged in sourcing, farming, packaging, marketing, and distribution of avocados, mangoes, and blueberries, with a 44.8% upward revision in fiscal 2024 earnings estimates and a 24.1% stock rise in the past year [17][18] - **Archer Daniels Midland (ADM)**: Focused on flexitarian diets, nutrition, and sustainable materials, with a 2.6% decline in 2025 earnings estimates and a 25.8% stock decline in the past year [19][20][21] - **Adecoagro (AGRO)**: Engages in farming, dairy operations, sugar, ethanol, and energy production, with a 4.2% sales growth and 14.3% EPS growth projected for 2025, despite a 2.7% stock decline in the past year [22][23][24] - **Calavo Growers (CVGW)**: A global leader in the avocado industry, with a 5.1% sales growth and 24.1% earnings growth projected for fiscal 2024, despite a 9.3% stock decline in the past year [25][26] - **Alico (ALCO)**: Benefits from strong consumption of not-from-concentrate orange juice, with a 13.5% stock rally in the past year, despite a projected 49.8% decline in current fiscal-year sales [27][28]

Adecoagro (NYSE: AGRO ) 3Q24 results were not outside of expectations, particularly for a low-seasonal quarter. Challenges in margins remain, given the generalized bear market in agricultural commodities. The company presented interesting information regarding land prices and the plans forLong-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, ...

Adecoagro S.A. (NYSE:AGRO) Q3 2024 Earnings Call Transcript November 14, 2024 10:00 AM ET Company Participants Mariano Bosch - CEO Emilio Gnecco - CFO Renato Pereira - VP, Sugar, Ethanol and Energy Conference Call Participants Bruno Tomazetto - Itau BBA Isabella Simonato - Bank of America Matheus Enfeldt - UBS Operator Good morning, ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to Adecoagro's Third Quarter 2024 Results Conference Call. Today with us, we hav ...

Adecoagro S.A. Condensed Consolidated Interim Financial Statements as of September 30, 2024 and for the nine-month periods ended September 30, 2024 and 2023 Legal information Denomination: Adecoagro S.A. Legal address: 28, Boulevard Raiffeisen, L-2411, Luxembourg Company activity: Agricultural and agro-industrial Date of registration: June 11, 2010 Expiration of company charter: No term defined Number of register (RCS Luxembourg): B153.681 Issued Capital Stock: 111,381,815 common shares (Note 21) Outstandin ...