On Friday, Adecoagro S.A. (NYSE: AGRO) has actually revealed upward/downward moved of +1.85% and ended the last trade at $5.52. The trading volume was tape-recorded to 300,485 shares as compared to typical traded volume of 317,177 shares.
Adecoagro S.A. (AGRO) reported just recently its results for the second quarter of 2019.
Financial & & Operational Highlights
This increase is generally described by: (i) the maximization of ethanol production mix (75% of overall TRS produced), drawing out the higher value per heap crushed, (ii) greater energy profits generally driven by the 35.9% increase in selling volumes; and (iii) the 6.7% decrease in overall production costs, on cents per pound basis, Because of the combined impact of higher squashing activities coupled with improved industrial efficiencies. Greater operational margins were mainly discussed by the reduction in production expenses. Total production expenses reduced by 7.4% on a cents per pound basis, as an outcome of our continuous focus on boosting commercial and agricultural effectiveness.
In the Rice service, higher margins were explained by higher selling volumes.
The nominal appreciation of the Brazilian Real, in turn, more contributes to discuss the distinction.
In our Sugar, Ethanol & & Energy service, Adjusted EBITDA reached $81.6 M in 2Q19, 0.9% higher contrast to the same duration of in 2015. This increase is mainly explained by: (i) the maximization of ethanol production mix (75% of overall TRS produced), drawing out the higher worth per ton crushed, (ii) greater energy incomes mainly driven by the 35.9% boost in offering volumes; and (iii) the 6.7% reduction in overall production expenses, on cents per pound basis, Because of the combined result of greater squashing activities coupled with improved industrial performances. These positive effects were partly balanced out by a reduction of $9.9 M in the mark-to-market effect of our sugar derivatives position, when contrast to the exact same duration last year, result of a smaller sized position as we are maximizing ethanol production.
In the Rice company, higher margins were explained by greater selling volumes. This boost was mainly explained by our commercial choice to postpone export sales during the 2018 fourth quarter. At the same time, improved performances at the mills ´ processing capability even more contribute to the boost in volumes.
AGRO fast ratio for newest quarter was 1.00 while existing ratio for period was 1.60. In most recent quarter, LT Debt/Equity ratio was noted at 0.64 and Total Debt/Equity ratio was noted at 0.87.
On a year-to-date basis, Adjusted EBITDA totaled $112.8 M, marking a 12.5% or $16.1 M decrease contrast to 6M18. Changed by the non – running outcomes (“Other operating earnings” and “Changes in fair value – Unharvested”), Adjusted EBITDA for the very first half of 2019 totaled $110.3 M, 3.1% or $3.3 M greater contrast to the exact same period of in 2015. Greater operational margins were mainly explained by the decrease in production costs. Overall production expenses decreased by 7.4% on a cents per pound basis, as a result of our continuous concentrate on boosting industrial and farming efficiencies.
Adjusted EBITDA for the Farming and Land Transformation organisations reached $10.5 M in 2Q19, $50.7 M or 82.9% lower year-over-year. However, $36.2 M is described by the reality that no farm sale was made during 2Q19, contrast to 2Q18 when we sold Rio de Janeiro and Conquista farms creating $36M. On an accumulated basis, Adjusted EBITDA in our Farming company (not including Land Transformation) amounted to $33.0 M, $10.8 M lower year-over-year. The factors for the decline differ from business to company. However, overall, lower typical selling grain prices offset enhanced effectiveness reflected in the decrease of production expenses.