Adecoagro S.A. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2018
November 15, 2018 at 04:24 pm EST
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Adecoagro S.A. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2018. For the quarter, the company reported Adjusted EBITDA of $79,641,000 marking a 5.8% increase compared to $75,284,000 for the third quarter of 2017. Net Income was $3.5 million, $5.1 million higher compared to third quarter of 2017. Adjusted net income was $14,112,000 compared to $10,599,000 a year ago. Sales of goods and services rendered was $178,744,000 compared with $262,988,000 a year ago. Profit from operations before financing and taxation was $34,401,000 compared with $23,817,000 a year ago. Profit before income tax was $13,769,000 compared with loss of $3,932,000 a year ago. Profit for the period attributable to equity holders of the parent was $4,478,000 compared with loss of $1,696,000 a year ago. Diluted earnings per share was $0.038 compared with loss per share of $0.025 a year ago. Net debt was $634,303,000 compared with $585,702,000 a year ago. Net cash generated from operating activities was $69,690,000 compared with $47,715,000 a year ago. Purchases of property, plant and equipment was $39,549,000 compared with $36,170,000 a year ago. Purchases of intangible assets was $210,000 compared with $814,000 a year ago.
For the nine months, the company reported Adjusted EBITDA totaled $278,586,000 compared to $187,217,000 the same period of last year. The main drivers for the increase were (i) a 13.0% reduction in total production costs mainly explained by higher crushing volumes which allowed to dilute fixed costs, coupled with the 13.1% depreciation of the Brazilian Real; (ii) $19.0 million higher gain derived from the mark-to-market of its commodity hedge position. Adjusted net income was $108,245,000 compared to $35,100,000 a year ago. Net Income on a year-to-date basis was a loss of $19.0 million, compared to a $9.5 million gain recorded in the same period of last year. Sales of goods and services rendered was $550,230,000 compared with $657,609,000 a year ago. Profit from operations before financing and taxation was $163,349,000 compared with $81,465,000 a year ago. Loss before income tax was $22,129,000 compared with profit of $13,528,000 a year ago. Loss for the period attributable to equity holders of the parent was $19,852,000 compared with profit of $8,409,000 a year ago. Diluted loss per share were $0.17 compared with earnings per share of $0.046 a year ago. Net cash generated from operating activities was $101,424,000 compared with $98,614,000 a year ago. Purchases of property, plant and equipment was $152,496,000 compared with $142,223,000 a year ago. Purchases of intangible assets was $2,359,000 compared with $1,390,000 a year ago.
Adecoagro S.A. is a holding company. The Company is involved in a range of businesses, including farming crops and other agricultural products, dairy operations, sugar, ethanol and energy production and land transformation. The Company is organized into three main lines of business: farming; land transformation, and sugar, ethanol and energy. Its agricultural activities consist of harvesting certain agricultural products, including crops, rough rice and sugarcane, for sale to third parties and for internal use as inputs in its various manufacturing processes, and producing raw milk. Its manufacturing activities consist of selling manufactured products, including processed rice, sugar, ethanol and energy, among others, and providing services, such as grain warehousing and conditioning and handling and drying services, among others. The Company's land transformation activities consist of the acquisition of farmlands or businesses with underdeveloped or underutilized agricultural land.