Adecoagro S.A.: Adjusted EBITDA in 2024 was $444 million and NCFO $161 million. Crushing volume and sugar production at all-time record. $102 million in shareholder distribution.

Core Insights - Adecoagro S.A. reported its fourth quarter results for 2024, highlighting a mixed performance across its business segments, with a notable increase in adjusted EBITDA for the Sugar, Ethanol & Energy business but a significant decline in the Farming business [1][4][7]. Financial Performance - Adjusted EBITDA for the Sugar, Ethanol & Energy business reached $105.3 million in 4Q24, a 20.4% increase year-over-year, while the full year adjusted EBITDA was $364.2 million, down 8.0% from the previous year [4]. - The company achieved a record sugar production mix of 55% in 4Q24, up from 52% in 2024, despite lower quarterly crushing volumes due to dry weather [5]. - Cash costs decreased by 8.4% year-over-year to 12.7 cents per pound, attributed to better cost dilution and higher tax recovery on ethanol sales [5]. - The Farming business saw adjusted EBITDA drop to $3.8 million in 4Q24, a 72.4% decline year-over-year, while the full year adjusted EBITDA was $103.0 million, consistent with the previous year [7]. - Overall adjusted EBITDA for 2024 was $444.3 million, a 6.8% decrease from the prior year, with net cash flow from operations (NCFO) at $160.9 million, down 8.5% year-over-year [8]. Shareholder Returns - In 2024, Adecoagro distributed a total of $101.9 million to shareholders, representing 58% of the NCFO generated in 2023, with a distribution yield of 9.4% [16]. - The company plans to distribute a minimum of $64.4 million in 2025, with cash dividends of $35.0 million to be paid in two installments [11]. Strategic Developments - The company is engaging in discussions regarding an unsolicited non-binding proposal from Tether Investments S.A. to acquire outstanding shares at $12.41 per share, which would result in Tether holding 51% of the company [17]. - Adecoagro continues to focus on investments in organic projects with attractive returns, maintaining a net debt of $522.2 million, equivalent to 1.2x net debt to adjusted EBITDA [8]. Operational Highlights - The company produced over 3.1 million tons of agricultural products and over 1 million MWh of renewable electricity across its 210.4 thousand hectares of farmland in South America [23]. - Adecoagro's commercial strategy allowed it to capitalize on market opportunities, including maximizing production of fluid milk and conducting rice sales during supply constraints [8].