Q2 2024 Adecoagro SA Earnings Call Transcript
Key Points
- Adecoagro SA (AGRO) reported a 30% year-over-year increase in consolidated adjusted EBITDA, reaching $140 million for the quarter.
- The company has successfully repurchased 5.2 million shares, representing 4.9% of its equity, and committed $35 million in cash dividends.
- The farming business saw a near doubling of adjusted EBITDA in the first semester, driven by the expansion of the rice footprint into Uruguay.
- Adecoagro SA (AGRO) has renewed its buyback program, allowing for the repurchase of an additional 5% of the company's equity by year-end.
- Net debt decreased by 26% compared to the same period last year, showcasing improved financial health and operational results.
- Lower than expected yields and a year-over-year decrease in selling prices negatively impacted the sugar, ethanol, and energy business.
- The rice segment experienced a decline in adjusted EBITDA during the quarter due to lower sales and higher costs in US dollar terms.
- Despite a significant recovery in production, the farming business faced challenges from lower international prices and higher costs.
- Dry weather conditions have put pressure on sugarcane yields, potentially affecting future production and costs.
- The company faced technical difficulties during the earnings call, which may have hindered the clarity of some financial and operational updates.
Good morning, ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to Adecoagro's second quarter 2024 results conference call. Today, with us, we have Mr. Mariano Bosch, CEO; Mr. Emilio Gnecco, CFO; Mr Renato Junqueira Pereira, Sugar, Ethanol and Energy, VP; and Mrs. Victoria Cabello, Investor Relations Officer.
We would like to inform you that this event is being recorded and all participants will be in a listen-only mode during the company's presentation. After the company remarks are completed, there will be a question-and-answer session. At that time, further instructions will be provided.
Before proceeding let me mention that forward-looking statements are based on the beliefs and assumptions of Adecoagro's management and on information currently available to the company. They involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other factors could
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