Executive Summary
Adecoagro SA delivered a challenging QQ1 2024 despite a positive net income print. Revenue of USD 160.8 million contracted by 60.1% year over year (YoY) and by 59.42% quarter over quarter (QoQ), reflecting a pronounced operating and demand headwind. On a GAAP-like basis, gross profit was negative at USD -7.23 million, producing a gross margin of -4.5%, and operating income deteriorated to a loss of USD -51.85 million, signaling significant margin pressures in the core operating activities. EBITDA remained strong at USD 114.12 million with an EBITDA margin of roughly 70.98%, underscoring substantial non-operating and non-cash contributions to profitability; however, operating cash flow was negative for the quarter (-USD 38.70 million), and free cash flow burned USD -133.44 million as working capital and capital expenditure (capex) consumed liquidity.
The reported net income USD 47.39 million translated to a net margin of 29.47% driven largely by non-operating items and a favorable tax line rather than by operating cash generation. Pre-tax income stood at USD 60.25 million, with total other income/expenses contributing USD 20.49 million, while interest expenses and depreciation/damortization shaped the cost structure. The balance sheet shows a solid liquidity position at period-end with USD 135.5 million of cash and cash equivalents and USD 181.6 million of total cash and short-term investments, but a meaningful debt burden remains (total debt USD 1.1999 billion; net debt USD 1.064 billion) with negative interest coverage (-2.43x).
From a benchmarking perspective, the company traded at a price-to-sales ratio of 7.19x and a price-to-earnings ratio of 6.10x, with an enterprise value multiple around 19.45x and a price-to-book ratio near 0.84x, suggesting a valuation that prices in near-term earnings expectations and asset-light upside but may underappreciate ongoing cash flow challenges. Management commentary is not available in the provided transcript data, limiting direct insight into strategic pivots or margin recovery plans. The near-term outlook will hinge on working capital normalization, capex discipline, and the ability to convert EBITDA into sustainable free cash flow while managing debt service.
Key Performance Indicators
QoQ: -59.42% | YoY:-60.09%
QoQ: -107.36% | YoY:-105.20%
QoQ: -224.93% | YoY:-165.70%
Key Insights
Revenue (USD): 160.8m; YoY: -60.1%; QoQ: -59.42%
Gross Profit: -7.23m; Gross Margin: -4.50%
EBITDA: 114.12m; EBITDA Margin: 70.98%
Operating Income: -51.85m; Operating Margin: -32.25%
Net Income: 47.39m; Net Margin: 29.47%
EPS (diluted): 0.09
Cash Flow: CFO -38.70m; FCF -133.44m; Capex: -94.73m; Free Cash Flow per share: -1.37
Balance Sheet: Cash & equivalents 135.51m; Total debt 1.1999b; Net debt 1.064b; Total assets 3.2229b; Total liabilities 1.8086b; Total stockholders’ equity 1.376e9
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Financial Highlights
Revenue (USD): 160.8m; YoY: -60.1%; QoQ: -59.42%
Gross Profit: -7.23m; Gross Margin: -4.50%
EBITDA: 114.12m; EBITDA Margin: 70.98%
Operating Income: -51.85m; Operating Margin: -32.25%
Net Income: 47.39m; Net Margin: 29.47%
EPS (diluted): 0.09
Cash Flow: CFO -38.70m; FCF -133.44m; Capex: -94.73m; Free Cash Flow per share: -1.37
Balance Sheet: Cash & equivalents 135.51m; Total debt 1.1999b; Net debt 1.064b; Total assets 3.2229b; Total liabilities 1.8086b; Total stockholders’ equity 1.376e9
Liquidity/Leverage: Current ratio 2.87; Quick ratio 1.02; Debt/Equity 0.872; Debt/Capitalization 0.466; Interest Coverage -2.43x
Valuation (per share/enterprise): P/E 6.10x; P/Sales 7.19x; P/BV 0.84x; EV multiple 19.45x
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
160.78M |
-60.09% |
-59.42% |
| Gross Profit |
-7.23M |
-105.20% |
-107.36% |
| Operating Income |
-51.85M |
-165.70% |
-224.93% |
| Net Income |
47.39M |
2.42% |
397.45% |
| EPS |
0.09 |
4.65% |
378.72% |
Key Financial Ratios
operatingProfitMargin
-32.3%
operatingCashFlowPerShare
$-0.46
freeCashFlowPerShare
$-1.37
Management Commentary
No earnings call transcript was provided for QQ1 2024. As a result, there are no management quotes or thematically grouped takeaways to extract. Should a transcript become available, highlights would be grouped by themes such as strategy, operations, and market conditions with context on significance.
Forward Guidance
No formal forward guidance was disclosed in the provided data. Given the quarter’s operating deterioration and negative operating cash flow, the near-term trajectory will depend on: (1) stabilization of working capital dynamics (notably receivables and inventory turnover), (2) moderation of capital expenditures or a higher rate of capital efficiency, and (3) the ability to translate EBITDA into sustainable free cash flow while reducing reliance on non-operating gains for net income. Industry trends in commodity prices, energy margins, and farmland asset optimization will also influence the trajectory. Investors should monitor the quarterly cadence of cash conversion and any management updates on debt refinancing or asset monetization.