Adecoagro's Q4 2024 Earnings Call: Contradictory Insights on Production Costs, Ethanol Prices, and Pricing Outlook

These are the key contradictions discussed in Adecoagro's latest 2024Q4 earnings call, specifically including: Sugar and Ethanol Production Costs, Ethanol Price Expectations, Sugar and Ethanol Pricing Outlook, and Production Cost Dynamics:



Sugar and Ethanol Production:
- Adecoagro achieved a new crushing record in 2024, reaching 12.8 million tons, with sugar production at 52.2% and ethanol production at 832,000 tons.
- This was driven by increased sugarcane availability from expansion planting and third-party cane, despite dry weather conditions.

Financial Performance and Shareholder Distribution:
- Consolidated adjusted EBITDA for 2024 was $444 million.
- Shareholder distribution included $102 million in dividends and share buybacks in 2024, surpassing the minimum distribution policy by $32 million.
- The distribution was supported by strong cash generation and growth projects like sugarcane expansion and biomethane production.

Farming and Dairy Segment Performance:
- The dairy segment achieved record EBITDA of $34 million, driven by higher sales and prices, while rice operations reported a new record of $50 million EBITDA.
- The crop segment saw improved production despite lower international prices and higher costs, with expectations of yield recovery in 2025 due to favorable weather conditions.