This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Adecoagro Recorded Adjusted EBITDA Of $10.3 Million In 1Q11, 69.2% Higher Than 1Q10

LUXEMBOURG, May 16, 2011 /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 2011.

  • Adecoagro recorded Adjusted EBITDA of $10.3 million in 1Q11, representing a 69.2% increase compared to 1Q10.
  • Gross Sales in 1Q11 reached $58.3 million, 11.3% higher than 1Q10.
  • Farming and Land Transformation businesses' Adjusted EBITDA grew 50.1% in 1Q11 compared to 1Q10, from $13.8 million to $20.8 million. This increase is primarily explained by an expansion in the planted area for rice and an increase in most commodity prices. It also reflects the benefits of our model based on diversification and no-till production, which mitigated the dry weather conditions that some areas suffered during the period.
  • The Sugar, Ethanol and Energy business underwent the inter-harvest maintenance of mills and equipment in 1Q11. Therefore, Adjusted EBITDA in 1Q11 only reflects the sale of sugar and ethanol inventories, the expenses incurred in sugarcane maintenance and preparation for the next harvest season and hedging results. Adjusted EBITDA decreased $2.4 million, from $(3.0) million in 1Q10 to $(5.4) million in 1Q11. However, 1Q10 included a $10.6 million gain from hedged positions of futures and forwards while 1Q11 only included a $1.3 million hedge gain.
  • Net income in 1Q11 totaled $15.4 million, $32.2 million above 1Q10, mainly due to the recognition of a non-cash gain (unrealized changes in fair value of long term biological assets) of $30.5 million. The gain was generated by an increase in the fair value of our sugarcane plantation, primarily as a result of higher sugar price estimates used in our sugarcane valuation model.
  • As of March 31, 2011, Adecoagro successfully planted a total of 192.2K hectares corresponding to the 2010/11 harvest year, 4.8% more than in the previous harvest year. The planted area for rice also increased by 51.8%, reaching a total of 27.5K hectares in the 2010/11 harvest year.
  • Given the seasonality of the business, Adjusted EBITDA tends to vary from quarter to quarter. In an average year, considering normal sales distribution and price fluctuations,  we would expect the first quarter to contribute the least to the full year Adjusted EBITDA, since it would only reflect sugar and ethanol inventory sales, as well as both biological growth and a portion of the harvest of our summer crops and rice. During the second quarter, as most of our crops are harvested and the sugarcane harvest season starts, we expect to record the highest Adjusted EBITDA. During the third quarter, Adjusted EBITDA will primarily reflect the results of the Sugar, Ethanol and Energy business.  This is the period when the sugar content of cane reaches its highest levels. Lastly, during the fourth quarter Adjusted EBITDA would reflect the conclusion of the sugarcane harvest season, the harvest of our winter crops and the biological growth of our planted summer crops and rice.

To read the full Earnings Release, please access www.adecoagro.com.br/ir

Investor Relations Charlie Boero – CFO Hernan Walker - IR ManagerEmail: ir@adecoagro.com

Adecoagro

Adecoagro is a leading agricultural company in South America. Adecoagro owns over 283 thousand hectares of farmland and several industrial facilities spread across the most productive regions of Argentina, Brazil and Uruguay, where it produces a wide range of agricultural products including corn, wheat, soybeans, rice, dairy products, sugar, ethanol and electricity among others.

SOURCE Adecoagro S.A.

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,172.68 -107.06 -0.62%
S&P 500 1,994.29 -16.11 -0.80%
NASDAQ 4,527.6890 -52.10 -1.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs