Adecoagro S.A.(AGRO) - 2025 Q3 - Quarterly Report

Financial Performance - Total revenues for 2024 decreased to $666,849 thousand from $762,407 thousand in 2023, representing a decline of approximately 12.5%[14] - Gross profit for 2024 was $356,246 thousand, down from $460,318 thousand in 2023, indicating a decrease of about 22.6%[14] - Profit for the year increased to $241,132 thousand in 2024, compared to $175,983 thousand in 2023, reflecting a growth of approximately 37%[14] Assets and Liabilities - Total assets as of December 31, 2024, were $927,397 thousand, a decrease from $969,209 thousand in 2023, representing a decline of about 4.3%[13] - The company’s total non-current liabilities decreased to $177,327 thousand in 2024 from $185,876 thousand in 2023, a decline of approximately 4.2%[13] - Shareholders' equity increased to $689,551 thousand in 2024 from $677,207 thousand in 2023, marking an increase of approximately 1.9%[13] Cash Flow - Cash flows from operating activities for 2024 were $186,386 thousand, down from $341,139 thousand in 2023, a decrease of about 45.5%[17] - Net cash from investing activities in 2024 was $52,506 thousand, compared to $89,364 thousand in 2023, indicating a decline of approximately 41.2%[17] - Dividends paid in 2024 amounted to $228,788 thousand, down from $397,637 thousand in 2023, reflecting a reduction of about 42.5%[17] Production and Capacity - The plant expansion project launched in October 2015 increased production capacity by approximately 10%, achieving daily outputs of 3,950 tons of granulated urea and 2,360 tons of ammonia[22] - Following the expansion, the fertilizer production plant's annual capacity is now approximately 1,440,000 tons of granulated urea, with an extended useful life of 50 years effective January 1, 2016[23] Accounting Policies - The financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) and presented in thousands of U.S. dollars[24][35] - The fiscal year for the company runs from January 1 to December 31 each year[30] - The company employs a straight-line depreciation method for property, plant, and equipment, with estimated useful lives ranging from 3 to 50 years depending on the asset type[41] Impairment and Financial Assets - The company assesses impairment of property, plant, and equipment annually, grouping assets into cash-generating units (CGUs) for evaluation[49][50] - The company assesses impairment of financial assets annually, recognizing losses only when objective evidence of impairment is identified[84] - Expected credit losses are measured based on the probability of default and loss given default, adjusted by forward-looking information[97] Financial Instruments and Risk Management - The Company entered into a variety of derivative financial instruments to manage its exposure to foreign exchange rate risks, including foreign exchange forward contracts[107] - The Company uses derivative financial instruments to hedge against fluctuations in exchange rates[182] - The Company monitors product prices and financial instruments to manage operational risks associated with price volatility[191] Revenue Recognition - The company primarily generates revenue from selling urea, ammonia, and other resale fertilizers, along with logistical services such as storage and shipping[145] - Revenue recognition is based on IFRS 15, with income recognized when control of the goods or services is transferred to the customer[150] - Contract liabilities are recognized when the customer pays consideration before the company transfers goods or services, originating from customer advances for future product purchases[159] Tax and Provisions - The current tax payable for the year is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period[116] - Deferred tax assets and liabilities are measured at the tax rates expected to be applicable in the year in which the liability is cancelled and the asset realized[121] - Provisions for decommissioning costs of the Bahía Blanca plant are recognized in Other liabilities in the Statement of Financial Position as of December 31, 2024 and 2023[135] Liquidity and Credit Risk - The Company has total liquidity availabilities of $108,661,000, including cash and cash equivalents of $4,138,000 and other liquid investments of $104,523,000[194] - The maximum exposure to credit risk as of December 31, 2024, includes cash and cash equivalents of $4,138,000 and trade accounts receivables of $63,697,000[200] - Receivables with related companies represent approximately 21.68% of the maximum exposure to credit risk, with significant concentrations in YPF S.A. and Nutrien Ag Solutions Argentina S.A.[200]