- In 3Q12, Adecoagro recorded Adjusted EBITDA of $40.7 million and an Adjusted EBITDA margin of 24.7%.
- Adecoagro's Sugar, Ethanol and Energy business Adjusted EBITDA in 3Q12 was $46.4 million, 8.3% higher than 3Q11. Adjusted EBITDA margin reached a record high of 60.6%. Good weather conditions allowed the company to increase the pace of its harvest activities and crush 19.9% more sugarcane than in 3Q11. Dry weather also had a positive impact on sugar content in cane (TRS), which was 3.5% higher in 3Q12 than in 3Q11. If normal weather conditions persist during the fourth quarter, we expect to compensate for the lower year-to-date sugarcane crushing, production volumes and financial performance, resulting from the delayed start of milling due to challenging weather conditions in 2Q12.
- The Farming and Land Transformation businesses' Adjusted EBITDA in 3Q12 was $0.7 million, $14.9 million below 3Q11. Most of our crops are harvested during the first and second quarter. Adjusted EBITDA for the Farming business in the third quarter is almost always lower than in other quarters and is primarily derived from the mark-to-market of grain inventories and commodity hedge positions. Unrealized hedge results account for $13.9 million of the lower year-over-year underperformance. Adecoagro has successfully begun the 2012/13 crop season. Crop planting is advancing on schedule. Assuming normal weather during the growth season and current-level commodity prices, we expect to obtain attractive margins per hectare, resulting in a profitable 2012/13 harvest year.
- Net income in 3Q12 was $(2.8) million, $32.9 million less than in 3Q11, which is mainly explained by: (i) a $14.0 million non-cash loss generated by the mark-to-market of our long term biological assets, compared to a $34.0 million gain generated in 3Q11; and (ii) a $3.1 million unrealized loss generated by the mark-to-market of our commodity hedge position in 3Q12, compared to a $12.5 million gain generated in 3Q11. These negative effects were partially offset by a $2.5 million foreign exchange loss in 3Q12 compared to a $22.8 million loss in 3Q11.
- As of September 30, 2012, Cushman & Wakefield updated its independent appraisal of Adecoagro's farmland. Adecoagro's 285,787 hectares were valued at $938.0 million. Adjusted by the sale of La Alegria and San Jose farms in November 2011 and June 2012 respectively, and the acquisition of La Canada farm in November 2011, the appraised value of our farmland portfolio increased $49.3 million or 5.6%, since September 30, 2011.
Adecoagro Recorded Adjusted EBITDA Of $40.7 Million In 3Q12
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