LUXEMBOURG - Adecoagro S.A. (NYSE: AGRO), a prominent sustainable production company in South America, has reported a first-quarter EPS of $0.22, surpassing analyst expectations for the period ending March 31, 2024. The company's revenue reached $253.8 million, showcasing a solid performance with a 2.6% increase compared to the same quarter last year.
The company attributed its revenue growth to a higher volume of sugarcane crushed, leading to increased sugar production and sales at robust prices, along with a rise in average selling prices in the Rice segment. Despite the positive revenue trend, adjusted net income for the first quarter was $23.3 million, marking a 40.1% decline from the previous year. This decrease was partly due to a loss in the mark-to-market of biological assets influenced by lower sugar prices.
Adecoagro's adjusted EBITDA for the quarter stood at $90.1 million, a slight 1.1% improvement from the first quarter of the previous year. This was primarily driven by the strong performance of all three segments of the company's Farming business, which offset a 32% decline in the Sugar, Ethanol & Energy business's adjusted EBITDA due to lower sugar prices and higher freight costs.
The company's net debt saw a significant reduction, down 23.0% YoY, with the net debt to LTM adjusted EBITDA ratio reaching 1.3x, a reduction from the 1.9x reported in the first quarter of the previous year.
In their remarks, Adecoagro's management highlighted the shareholder distribution approved at the Annual Shareholder Meeting held on April 17th, with a cash dividend distribution of $35 million to be paid in two installments. Additionally, the company has invested $26.6 million in repurchasing shares under its existing buyback program.
A recent transaction in April 2024 saw the sale of La Pecuaria farm in Uruguay, which generated an adjusted EBITDA of $15.3 million, to be recorded in the second quarter.
CFO Emilio Gnecco commented on the results, "Our first-quarter performance reflects the strength of our diversified portfolio and the resilience of our business model. Despite market challenges, we remain committed to delivering value to our shareholders and investing in sustainable growth."
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