LUXEMBOURG, Aug. 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 2Q11.
- Adecoagro recorded Adjusted EBITDA of $65.5 million in 2Q11 (adjusted EBITDA margin of 37.1%), representing a 645.6% increase compared to 2Q10.
- 6M11 Adjusted EBITDA stands at $75.9 million (adjusted EBITDA margin of 32.3%), $61.0 million or 409.2% higher than 6M10.
- Gross Sales in 2Q11 reached $176.6 million, 71.6% higher than 2Q10.
- Farming and Land Transformation businesses' Adjusted EBITDA grew 155.5% in 2Q11 compared to 2Q10, from $9.0 million to $23.0 million mainly driven by an increase in planted area and a significant increase in commodity prices.
- Adecoagro's Sugar, Ethanol and Energy business began its 2011 milling operations during the beginning of 2Q11. Sugarcane crushing volume as of 2Q11 has increased 41.3% compared to 2Q10, mainly as a result of the completion of the Angelica mill which is now operating at full capacity of 900 tons/hr compared to 726 tons/hr in 2010. Our 2Q11 Adjusted EBITDA for the segment has far exceeded that of the previous year, reaching $49.4 million, 591.0% higher than the $7.2 million obtained in 2Q10, with an Adjusted EBITDA margin of 49.4%.
- Net income in 2Q11 totaled $12.7 million, $66.5 million above 2Q10, mainly due to the substantial improvement in the Sugar, Ethanol and Energy business. Net income in 2Q10 was negatively impacted by a non-cash loss of $67.2 million generated by a decrease in the fair value of the sugarcane plantation (unrealized changes in fair value of long term biological assets).
- Our Sugar, Ethanol and Energy expansion plan is moving forward on schedule. On June 27, 2011, our subsidiary, Ivinhema Agroenergia, obtained the necessary environmental license to start the construction and assembly of the Ivinhnema mill in the State of Mato Grosso do Sul, Brazil. We expect the Ivinhema mill to start milling operations during the first half of 2013, reaching 2.0 million tons of nominal crushing capacity during that year, and gradually increasing capacity up to 6.3 million tons by 2017.
To read the full 2Q11 earnings release, please access ir.adecoagro.com
A conference call to discuss 2Q11 results will be held tomorrow: