Adecoagro S.A.(US:AGRO)2025-08-18 20:08Financial Performance - Revenue for the six-month period ended June 30, 2025, increased to $707,586 thousand, up 5.5% from $673,192 thousand in the same period of 2024[5] - Profit from operations decreased significantly to $9,333 thousand for the six-month period ended June 30, 2025, compared to $105,073 thousand in 2024, reflecting a decline of 91.1%[5] - The company reported a net loss before income tax of $275 thousand for the six-month period ended June 30, 2025, compared to a profit of $12,688 thousand in 2024[5] - Total comprehensive income for the six-month period ended June 30, 2025, was $30,998 thousand, down from $207,498 thousand in 2024, a decrease of 85.1%[7] - For the six-month period ended June 30, 2025, Adecoagro reported a profit of $1,664 thousand, a significant decrease from $57,212 thousand in the same period of 2024[17] Cash and Liquidity - Cash and cash equivalents decreased to $180,607 thousand as of June 30, 2025, from $211,244 thousand at the end of 2024, a decline of 14.5%[8] - Cash flows from operating activities for the first half of 2025 amounted to $111,037 thousand, compared to $115,801 thousand in 2024, reflecting a decline of approximately 4.8%[19] - The company experienced a net cash used in investing activities of $122,724 thousand in the first half of 2025, compared to $143,101 thousand in 2024, indicating a reduction of about 14.2%[19] - Adecoagro's cash and cash equivalents at the end of the period were $180,607 thousand, an increase from $140,311 thousand in 2024[19] Assets and Liabilities - Total assets increased to $3,277,883 thousand as of June 30, 2025, compared to $3,114,888 thousand at the end of 2024, an increase of 5.3%[8] - Non-current liabilities rose to $1,335,025 thousand as of June 30, 2025, from $1,306,468 thousand at the end of 2024, an increase of 2.2%[8] - The company’s total shareholders' equity increased slightly to $1,411,750 thousand as of June 30, 2025, from $1,408,101 thousand at the end of 2024[8] - The total segment liabilities as of June 30, 2025, were $1.268 billion, an increase from $1.121 billion as of December 31, 2024[65] Segment Performance - For the six-month period ended June 30, 2025, total revenue for the Rice segment was $137,395, with an adjustment of $(1,267), resulting in a total of $136,128[62] - The Dairy segment reported total revenue of $145,083, with an adjustment of $(4,152), leading to a total of $140,931[62] - The overall profit from operations for the corporate segment was $(24,605) for the six-month period ended June 30, 2025[62] - The profit from operations for the Dairy segment was $29,090 for the six-month period ended June 30, 2024[63] Biological Assets - The company reported a decrease in biological assets by $113,599 thousand in the first half of 2025, compared to a decrease of $121,876 thousand in 2024[19] - The total biological assets amounted to $193,666 thousand as of June 30, 2025, a decrease from $293,945 thousand as of June 30, 2024, reflecting a reduction of approximately 34%[106] - The Group's biological assets included crops valued at $40,059 thousand, rice at $24,458 thousand, dairy at $43,971 thousand, and sugarcane at $85,178 thousand as of June 30, 2025[102] Borrowings and Debt - Borrowings as of June 30, 2025, totaled $904.907 million, an increase from $779.556 million as of December 31, 2024[65] - The company issued senior notes for US$ 500 million at an annual nominal rate of 7.5% on July 29, 2025, maturing on July 29, 2032[142] - The company’s lease liabilities as of June 30, 2025, totaled US$363.7 million, with non-current liabilities at US$316.2 million[152] Inflation and Economic Conditions - The Argentine subsidiaries faced an inflation rate of 15.1% for the six-month period ended June 30, 2025, compared to 79.8% in 2024, indicating a significant reduction in inflationary pressure[26] - The Argentine government has eased foreign exchange controls, allowing residents to freely purchase and hold US dollars for savings without prior authorization[33] Shareholder Actions - The company made payments of $10,210 thousand for the purchase of its own shares during the first half of 2025[19] - The company repurchased shares for an amount of US$ 1.06 million during the six-month period ended June 30, 2025, compared to US$ 4.15 million in the same period of 2024[129] - Tether Investments S.A. acquired approximately 70% of the outstanding common shares of the company as of April 25, 2025, increasing its ownership to 72.4% by July 10, 2025[162] Financial Instruments and Risk Management - The Group's derivative financial instruments included futures contracts with a total notional amount of $48,742 thousand, resulting in a profit of $920 thousand[40] - A hypothetical 10% appreciation of the US Dollar against the Brazilian Real would decrease profit before income tax by $20,179 thousand, while a 25% appreciation against the Argentine Peso would decrease it by $73,575 thousand[34] - The Group recognized a gain of $3.8 million from interest rate swap agreements for the six-month period ended June 30, 2025[47] Other Financial Metrics - The company recognized tax credits of $3.42 million in 2025, which included $2.2 million related to non-income tax credits[78] - The total financial results, net for the six-month period ended June 30, 2025, showed a loss of $9,608 thousand, improving from a loss of $92,385 thousand in 2024[80] - The company reported a net gain of $8.40 million from other operating income for the six-month period ended June 30, 2025, compared to a net gain of $1.14 million in 2024[78]