LUXEMBOURG, May 15, 2012 /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 ended on March 31, 2012. Highlights:
- Adecoagro recorded Adjusted EBITDA of $1.8 million in 1Q12, representing an $8.5 million decrease compared to 1Q11.
- Net income for 1Q12 was $1.3 million, $14.1 million lower than in 1Q11.
- The Farming and Land Transformation businesses' Adjusted EBITDA in 1Q12 was $12.7 million, $8.1 million lower than 1Q11. This decrease is primarily explained by the drought which impacted our soybean and corn yields in the Humid Pampas and the northwest of Argentina, lower than expected rice yields as a result of cold temperatures during the crop's growth phase and a $2.5 million loss resulting from the mark-to-market of our soybean and corn hedge positions.
- The Sugar, Ethanol and Energy business underwent the annual inter-harvest maintenance of the mills and equipment in the first quarter. Accordingly, Adjusted EBITDA in 1Q12 reflects the sale of sugar and ethanol inventories, the expenses incurred in sugarcane maintenance and preparation for the next harvest season and hedging results. Inventory sales were significantly higher than 1Q11 and delivered positive margins. Pursuant to our strategy of locking margins and stabilizing cashflow we took advantage of attractive sugar and ethanol pricing opportunities during the end of 2011. As a result of the increase in prices during 1Q12, our operating performance was negatively impacted by an unrealized loss of $5.3 million resulting from the mark-to-market of these open hedge positions. Therefore, Adjusted EBITDA for the quarter was $(4.7) million, $0.7 million better than the same quarter of 2011.
- Net Income in 1Q12 totaled $1.3 million, $14.1 million less than in 1Q11. This decrease is explained mainly by the drought and low temperatures which impacted our farming operations in Argentina and the mark-to-market of our sugar and ethanol hedges.
To read the full 1Q12 earnings release, please access ir.adecoagro.com. A conference call to discuss 1Q12 results will be held tomorrow with live webcast through the internet:
English Conference Call May 16th, 2012 11 a.m. (US EST)Tel: (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 CFOHernan Walker IR Manager Email: email@example.com Tel: +54 (11)4836-8651 SOURCE Adecoagro S.A.
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