Adecoagro S.A.(AGRO) - 2024 Q4 - Annual Report

Revenue and Profit - Revenue for the year ended December 31, 2024, was $1,518.9 million, an increase of 16.9% compared to $1,298.9 million in 2023[21] - Profit for the year was $92.1 million, a decrease of 59.3% from $226.7 million in 2023[21] - Basic earnings per share for 2024 was $0.900, down from $2.113 in 2023[21] - Total comprehensive income for the year was $237.2 million, an increase of 52.9% from $155.1 million in 2023[23] - Profit for the year 2023 was $226.291 million, while the profit for 2024 was $92.340 million[30][34] - Total comprehensive income for 2023 was $155.096 million, compared to $237.226 million for 2024[30][34] Assets and Liabilities - The Company's net assets balance was $1.4 billion as of December 31, 2024[13] - Total assets decreased from $3,164,894 thousand in 2023 to $3,114,888 thousand in 2024, a decline of approximately 1.58%[24] - Total liabilities decreased from $1,899,246 thousand in 2023 to $1,706,787 thousand in 2024, a reduction of approximately 10.14%[24] - Total shareholders' equity increased from $1,265,648 thousand in 2023 to $1,408,101 thousand in 2024, an increase of about 11.25%[24] - The Group's total liabilities as of December 31, 2024, were US$1.335 billion, including US$779.556 million in borrowings and US$342.030 million in lease liabilities[178] Cash Flow and Financing - The company reported a decrease in cash and cash equivalents from $339,781 thousand in 2023 to $211,244 thousand in 2024, a decline of approximately 37.87%[24] - The net cash generated from operating activities was $328,331 thousand in 2024, down from $434,907 thousand in 2023, a decrease of 25%[38] - The net cash used in financing activities was $274,000 thousand in 2024, compared to $208,743 thousand in 2023, indicating increased financing outflows[38] - The company incurred interest expenses of $24,629 thousand in 2024, a decrease from $55,476 thousand in 2023[38] - The Group's cash and cash equivalents as of December 31, 2024, totaled US$211.244 million[177] Expenses - General and administrative expenses increased to $103.9 million in 2024 from $70.3 million in 2023[21] - Total expenses for 2024 amounted to $1,346,503 thousand, reflecting a rise from $1,073,000 thousand in 2023[120] - Salaries and social security expenses increased to $214,547 thousand in 2024 from $177,098 thousand in 2023, reflecting a rise of 21.1%[123] - Selling expenses for 2024 were $153,482 thousand, compared to $129,092 thousand in 2023, indicating an increase of about 19%[104] Biological Assets and Agricultural Produce - The total aggregated fair value of the Company's level 3 biological assets was $239 million as of December 31, 2024[9] - Total biological assets increased to $293,945 thousand in 2024 from $228,037 thousand in 2023, representing a growth of 28.9%[166] - The initial recognition and changes in fair value of biological assets amounted to $143,081 thousand in 2024, compared to $87,858 thousand in 2023, marking a significant increase of 62.9%[162] - The fair value of agricultural produce at the point of harvest reached $578,085 thousand in 2024, up from $419,442 thousand in 2023, indicating a 37.9% increase[168] Financial Performance and Ratios - The Group's profit from operations attributable to equity holders of the parent for 2024 was $92,340 thousand, a decrease of 59% compared to $226,291 thousand in 2023[146] - The Group's diluted earnings per share for 2024 was $0.896, slightly down from $2.105 in 2023[148] - The Group's total borrowings decreased from $904,949 thousand in 2023 to $779,556 thousand in 2024, resulting in a gearing ratio of 0.36 compared to 0.42 in 2023[83] - The Group's interest rate risk management includes using floating-to-fixed interest rate swaps to mitigate cash flow interest rate risk[69] Market and Economic Conditions - Argentina's annual inflation rate was 117.8% in 2024, down from 211.4% in 2023, reflecting a decrease in inflationary pressure[47] - The official exchange rate of the Argentine Peso against the U.S. dollar increased by 27.7% in 2024, compared to a 356.3% increase in 2023[47] - A hypothetical 10% appreciation of the U.S. Dollar against the Brazilian real would have a significant impact on the Group's financial position, affecting the fair value of biological assets and agricultural produce prices[56] Risk Management - The Group's exposure to liquidity risks includes refinancing borrowings and ensuring availability of funding, with total liabilities amounting to $1.7 billion as of December 31, 2024[67] - The Group's credit risk is considered low due to defined trading limits and a large base of customers with a good credit history[75] - The Group's exposure to credit risk from trade receivables is detailed in Note 18, with no credit limits exceeded during the reporting periods[79] Strategic Initiatives - The company plans to continue expanding its market presence through strategic contracts for sugar, soybean, and corn[113] - The company is focusing on enhancing its product offerings and technological advancements in the agricultural sector[113]