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- **Record Ethanol Production**: 20% YoY increase in ethanol mix, driving Q3 EBITDA of $115 million.
- **Profertil Acquisition**: $600 million deal to diversify into urea, subject to YPF approval.
- **Cost Efficiency**: 15-20% cost reduction in 2026 via yield improvements and operational efficiency.
- **Debt Strategy**: Targeting 2.8x leverage ratio, with long-term debt refinancing plans.
- **Crop Mix Adjustment**: 22% leased area reduction to focus on premium rice and dairy products.

**【CEO Summary】**
- Consolidated adjusted EBITDA reached $115 million for the quarter, with year-to-date EBITDA of $206 million.
- Brazil achieved a quarterly crushing record of 4.9 million tons, with a 20% year-over-year increase in ethanol production mix due to higher margins.
- Argentina and Uruguay operations are adjusting crop mixes to improve margins amid price pressures.
- Acquired 50% stake in Profertil, a leading urea producer, valued at $600 million, subject to YPF's right of refusal.

**【CFO Financial Commentary】**
- Gross sales declined 29% YoY to $323 million, but adjusted EBITDA improved to $115 million due to sugar and ethanol operations.
- Ethanol mix increased to 58% (vs. 45% prior year), driven by strategic production shifts.
- Net debt rose 35% YoY to $872 million, with leverage ratio at 2.8x, targeting reduction through cost savings and revised CapEx.
- 2025 shareholder distributions totaled $45 million, including $35 million in dividends.

**【Q&A Highlights】**
- **2026 Outlook**: Crushing volumes expected to grow 5-6% YoY, with cost reductions of 15-20% via improved yields and efficiency.
- **CapEx Strategy**: 2026 CapEx reduced by 30% to focus on high-margin projects, with no new M&A until 2027.
- **Debt Management**: Long-term debt at competitive rates, with plans to reduce leverage through cost-cutting and asset sales.
- **Profertil Acquisition**: Financing fully secured; expects future dividend contributions post-closing.
- **Crop Adjustments**: 22% reduction in leased area to prioritize high-productivity farms, shifting to premium rice varieties.


Adecoagro S.A. (AGRO) Q3 2025 Earnings Call Transcript

Manufactured Products and Services Rendered

Agricultural Produce and Biological Assets

AGRO

AGRO fundamentals

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