Adecoagro S.A.(US:AGRO)2025-05-12 20:10Financial Performance - Revenue for Q1 2025 increased to $325,506 thousand, up 24.3% from $261,775 thousand in Q1 2024[5] - Profit for the period decreased to $18,707 thousand, down 60.5% from $47,344 thousand in Q1 2024[7] - Basic earnings per share for Q1 2025 was $0.181, a decrease of 59.9% compared to $0.452 in Q1 2024[5] - Total comprehensive income for Q1 2025 was $76,028 thousand, down 55.0% from $168,728 thousand in Q1 2024[7] - The company reported a profit from operations of $3.9 million for Q1 2025, compared to a profit of $37.2 million in Q1 2024, indicating a decrease in operational profitability[66] Assets and Liabilities - Total assets as of March 31, 2025, were $3,350,293 thousand, an increase of 7.6% from $3,114,888 thousand at the end of 2024[8] - Non-current assets rose to $2,248,865 thousand, up 7.1% from $2,099,886 thousand at the end of 2024[8] - Current liabilities increased to $555,400 thousand, up 38.7% from $400,319 thousand at the end of 2024[8] - The company’s borrowings totaled $918.4 million as of March 31, 2025, compared to $779.6 million at the end of 2024, reflecting an increase in debt levels[66] - The company’s total liabilities increased to $1.28 billion as of March 31, 2025, from $1.12 billion at the end of 2024[66] Cash Flow and Investments - Cash flows from operating activities for the first quarter of 2025 were negative at $(19,070) thousand, compared to $(38,701) thousand in the first quarter of 2024[20] - The company reported a net cash used in investing activities of $(98,898) thousand for the first quarter of 2025, compared to $(87,444) thousand in the same period of 2024[20] - Adecoagro's cash and cash equivalents at the end of the period were $179,530 thousand, a decrease from $211,244 thousand at the beginning of the period[20] Segment Performance - For the three-month period ended March 31, 2025, the total revenue for the Crops segment was $44,099 thousand, while the Rice segment generated $77,645 thousand, and the Dairy segment reported $76,325 thousand[63] - The profit from operations for the Crops segment was a loss of $1,426 thousand, while the Rice segment achieved a profit of $4,112 thousand, and the Dairy segment reported a profit of $3,287 thousand[63] - The total revenue for the corporate segment for the same period was $325,506 thousand, with a cost of revenue of $276,236 thousand, resulting in a gross margin of $49,270 thousand[63] Costs and Expenses - For the three-month period ended March 31, 2025, the total cost of revenue was $276,236 thousand, an increase from $205,341 thousand in the same period of 2024, representing a 34.4% increase year-over-year[72][73] - The total expenses for the three-month period ended March 31, 2025, amounted to $253,629 thousand, compared to $244,467 thousand in the same period of 2024, reflecting a 3.8% increase[75][76] - The cost of production for the three-month period ended March 31, 2025, totaled $115,826 thousand, compared to $138,254 thousand for the same period in 2024, indicating a reduction of approximately 16.5%[106] Financial Instruments and Risks - The Group's total net monetary position is a liability of $998,456 thousand, with significant liabilities in Brazilian Reais ($584,052 thousand) and US Dollars ($471,406 thousand) [34] - The Group's derivative financial instruments include futures and options with a total notional value of $71,130 thousand and a profit of $2,843 thousand [42] - The Group's analysis of exchange rate risk indicates that a 25% depreciation of the US Dollar against the Argentine peso would significantly impact financial results [33] Shareholder Information - The total amount of dividends payable as of March 31, 2025, was $18,176 thousand, compared to $703 thousand as of December 31, 2024[135] - The company repurchased shares for an amount of $1,057,858 thousand during the three-month period ended March 31, 2025[126] Inflation and Economic Environment - The Argentine inflation rate for the three-month period ended March 31, 2025, was 8.6%, significantly lower than 51.6% in the same period of 2024[27] - The new managed floating exchange rate regime allows for a band between 1,000 and 1,400 pesos per US dollar, expanding by 1% monthly [35]