Adecoagro Reports Q2 2024 Results: Increased EBITDA and Shareholder Returns Amid Lower Commodity Prices in South America
Gross Sales: Down 2.3% year-over-year for Q2 2024 and 0.5% for the first half of 2024. The decline in sales was attributed to lower commodity prices, which offset higher production volumes.
Adjusted EBITDA: Increased by 2.7% in Q2 2024 and 2.0% for the first half of the year, driven by strong performance in the Crops segment and improved Dairy operations. However, Adjusted EBITDA was 8.5% lower year-over-year for Q2 and 18.0% lower for the first six months of 2024.
Distribution Commitment: Adecoagro has already committed $16.1 million above the annual minimum required by its distribution policy, totaling $86.4 million in dividends and share repurchases. Cash dividends of $35 million have been approved, with the first installment of $17.5 million paid on May 29, 2024, and the second installment planned for November 2024.
Share Repurchase: Year-to-date investments amounted to $51.4 million for repurchasing 5.2 million shares (4.9% of the company's equity) at an average price of $9.98 per share. The Board of Directors has renewed the buyback program through December 31, 2024, allowing for the repurchase of an additional 5% of the company's equity.
About Adecoagro:
Adecoagro is a leading sustainable production company in South America, managing 210.4 thousand hectares of farmland and several industrial facilities across Argentina, Brazil, and Uruguay. The company produces over 2.8 million tons of agricultural products and more than 1 million MWh of renewable electricity.
