LUXEMBOURG, May 14, 2015 /PRNewswire/ -- Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), one of the leading agricultural companies in South America, announced today its results for the first quarter of 2015.

Main highlights for the period:

Financial & Operational Highlights


    --  Adecoagro recorded Adjusted EBITDA((1)) of $35.8 million in 1Q15,
        representing a 3.1% increase compared to 1Q14.


    --  Adjusted EBITDA margin((1)) during 1Q15 reached 32.8% in 1Q15, compared
        to 36.7% in 1Q14.


    --  The Farming and Land Transformation businesses' Adjusted EBITDA in 1Q15
        was $23.1 million, compared to $35.9 million in 1Q14. This decrease is
        primarily explained by: (i) a $25.1 million decrease in margins
        generated by our Crops segment as a result of lower corn, soybean and
        wheat prices, which was partially offset by higher crop yields and an
        $8.8 million gain ($3.7 million unrealized) from the mark-to-market of
        our commodity hedge position, compared to a $12.5 million loss in 1Q14;
        and (ii) a $7.8 million reduction in margins from our Rice segment,
        resulting from lower rice yields due to above average rains and cloudy
        days during the development of the crop, coupled with an increase in
        production costs measured in USD driven by the appreciation of the
        Argentine peso in real terms.



    --  The Sugar, Ethanol and Energy business underwent its annual
        inter-harvest maintenance of industrial and agricultural equipment
        during the first quarter of 2015. Accordingly, 1Q15 Adjusted EBITDA
        primarily reflects the sale of sugar and ethanol inventories as well as
        a portion of the ethanolproduced during March, the expenses incurred in
        sugarcane harvest, maintenance and treatment, overhead expenses and
        derivative hedge results. Adjusted EBITDA during 1Q15 reached $17.9
        million, $14.1 million higher year-over-year. Financial performance in
        1Q15 was enhanced by: (i) our ethanol carry strategy executed since
        August 2014, which allowed us to increase ethanol sales volumes by 37%
        compared to 1Q14 and capture higher off-season prices; (ii) a 61.7%
        increase in TRS per hectare driven by improvements in agricultural
        management; (iii) an accelerated start of the milling season that
        allowed us to crush 460.1 thousand tons of sugarcane compared to 45.2
        thousand in 1Q14, resulting in 14x production growth and improved net
        sales and margins; and (iv) a $12.3 million gain ($9.7 million
        unrealized) resulting from the mark-to-market of our sugar derivative
        hedge position, contrasted by a $1.4 million loss in 1Q14. Despite a
        12.6% increase in energy exports, results in the quarter were partially
        offset by lower year-over-year energy spot prices as a result of the new
        price cap set by the government.


    --  Net Income in 1Q15 was $13.8 million, $11.2 million higher than in 1Q14.
        Net income during the quarter was enhanced by (i) a $12.3 million
        unrealized gain from Changes in Fair Value of our sugarcane plantation
        driven by the natural growth experienced by sugarcane plantation during
        1Q15, compared to a $3.4 million loss in 1Q14; and (ii) a $2.3 million
        year-over-year decrease in income tax. Net income was negatively
        affected by a $13.2 million foreign exchange loss, compared to a $3.9
        million loss in 1Q14, explained by the 20.8% devaluation of the
        Brazilian Reais in 1Q15.

Strategy Execution

Commencement of 2014/15 Sugarcane Harvest


    --  Our sugarcane cluster in Mato Grosso do Sul had an accelerated start of
        milling and harvesting operations as part of a production strategy to
        extend the harvest period. The Angelica mill began crushing on March 11,
        15 days ahead of last season, and the Ivinhema mill began on March 16,
        40 days earlier than the previous season.


    --  In an industry with very high mechanization and high fixed cost
        structure, extending the milling season will allow us to increase
        sugarcane crushing and production, dilute fixed costs and enhance
        operating margins.


    --  Maintenance of industrial equipment and sugarcane plantations was
        successfully performed between January and early March. Our cluster has
        a sufficient supply of cane and is expected to crush at very close to
        nominal capacity. Our agricultural and industrial teams have undergone a
        thorough training process and are set to enhance operational and
        productive efficiencies throughout the year.

Capital Expenditures Slow down


    --  Consolidated capex spending is expected to slow down appreciably in
        2015, driven by the completion of our sugarcane cluster in Mato Grosso
        do Sul. Capital expenditures are expected to reach between $150 and $170
        million during the year, compared to $324 million the previous year. As
        of today, no major growth capex has been committed for 2016 onwards.
        Therefore, capex will consist primarily on maintenance related to the
        Sugar, Ethanol & Energy business, including sugarcane renewal and
        off-season maintenance of industrial facility and agricultural
        machinery.


    --  In 1Q15, capex decreased 54.4% year-over-year, from $137.8 million in
        1Q14 to $62.8 million

(1) Adjusted EBITDA is defined as consolidated profit from operations before financing and taxation, depreciation, amortization and unrealized changes in fair value of long-term biological assets (sugarcane, coffee and cattle) plus the gains or losses from disposals of non-controlling interests in subsidiaries. Adjusted EBIT is defined as consolidated profit from operations before financing and taxation, and unrealized changes in fair value of long-term biological assets (sugarcane, coffee and cattle) plus the gains or losses from disposals of non-controlling interests in subsidiaries. Adjusted EBITDA margin and Adjusted EBIT margin are calculated as a percentage of net sales.

To read the full 1Q15 earnings release, please access ir.adecoagro.com. A conference call to discuss 1Q15 results will be held tomorrow with live webcast through the internet:

English Conference Call

May 15, 2015
9 a.m. (US EST)
10 p.m. Buenos Aires
10 p.m. Sao Paulo
3 p.m. Luxembourg

Tel: +1 (877) 317-6776
Participants calling from the US
Tel: +1 (412) 317-6776
Participants calling from other countries
Access Code: Adecoagro

Investor Relations Department
 Charlie Boero Hughes
CFO

Hernan Walker
IR Manager
Email: ir@adecoagro.com
Tel: +54 (11) 4836-8651

About Adecoagro:

Adecoagro is a leading agricultural company in South America. Adecoagro owns over 257 thousand hectares of farmland and several industrial facilities spread across the most productive regions of Argentina, Brazil and Uruguay, where it produces over 1.7 million tons of agricultural products including corn, wheat, soybeans, rice, dairy products, sugar, ethanol and electricity among others.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/adecoagro-recorded-adjusted-ebitda-of-358-million-and-net-income-of-138-million-in-1q15-300083882.html

SOURCE Adecoagro S.A.