AGRO - Earnings call transcript Q4 2021

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Operator

Good morning, ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to Adecoagro’s Fourth Quarter 2021 Results Conference Call. Today with us, we have Mr. Mariano Bosch, the CEO, and Mr. Charlie Boero Hughes, CFO. inform participants this mode will company’s to recorded, is during like presentation. all and be would you event that being the We in listen-only session. there company’s be are the completed, After a remarks question-and-answer will At that time, instructions will be given. further mention to let on and the Adecoagro’s company. [Operator of statements on and beliefs forward-looking me Before are that Instructions] information assumptions management, proceeding, based the currently available may future not risks, They in that assumptions events, to and and relate circumstances therefore uncertainties, involve may future. they or occur the on depend because Investors that operating forward-looking could such from understand of the general should materially conditions, economic in and and factors future statements. conditions, other cause Adecoagro, affect differ expressed industry results to could also those results

Bosch, now you conference. Now, your may Mr. turn I’ll conference Mr. over begin the to CEO. Mariano Bosch,

Mariano Bosch

generated and you Adecoagro’s strong in has have company quarter you XXXX XXXX, again, of as morning, delivered our Once sales In thank we joining results, fourth may in financial for made conference. results records numbers, in the excess our report. million almost seen operational and share Good we cashflow free in program. over generated million $XXX as billion, EBITDA, the and to our in adjusted $X operations. of research part throughout XXXX the in Also, distributed shareholders anticipated year, via from adjusted back buyback $XXX

dividends, XXXX, our in During In million of part as we buyback million equity more shares, distribute program. repurchased distribution $XX of XXXX, our repurchasing X.X we the continue than X% company. shares will the policy, and of under

produced of we reached farming that customers business, the you high dairy operation, over Now, process we to a day, in of I of the high our of own per allowed a to raw business across on the different decision like our segments. line half value-added we some domestic contribution, In flexibility In mills to the products, our highlights XXXX tons conditioned and our In the both world. we in different which sugar, grains level liters million record million flow, and our X shipped milk and year. of ethanol production give and maximize to business, we that would during the degree produce are with in in highest energy with markets. our previous The returns. demanded volumes product high we marginal facilities quality to the export hedging crushing strategic us to the have maintain produce achieved results

sustainable impact This like overall approximately more into Our is model we in of important transformed production the replacing production vinasse costs. to had byproducts fertilizer, an mitigate XXXX needs. expect And of our of includes that in the recycling concentration XX% increase benefit our for more XXXX, such will XX% be provide already of sustainable where seeing fertilizers production in year. our potash we model a during will Brazil. relevant every requirements In that lack sense, this much are of potash than

strongly the improving are efficiency of and to sustainability operations. committed We our

gas may became this Adecoagro carbon certificates. years company the to natural to certified the you commercialize the to be And first company first As program. RenovaBio two under became year, remember, issue credits we ago,

social, always our result of monetize part proud X produce on we been have production CBios, work million. able being are additional In governance under We million practices. an front $XX of of which case of program, will the and to will our the current of RenovaBio awareness and per of this the price CBio, generate Environment, sustainable $XX DNA.

prices excellent part from all position strategy. we formally the we focus higher committee to company's the an we aspects are development will of to regard current market produce. overall the products in the benefit as XXXX, of these the on ESG created outlook, During all that With that of an

XX% than well. purchased looking the season have XXX% underway, time, is production applied. inputs of and unhedged, this remains development At been year’s of our are harvest crops the and of more Our and same the

have XX% inputs, view potential of scarcity more secured In than a of addition, next our of in we season. needs for

As want rice we the attractive enter country purchase very historical rice. confident company and a to stakeholders for great Uruguayan a XX% in our our gratitude is part rice $XX employees, which our agreement all to production, capacity and and operation, to the strategy contractors, an become hard opportunity To operations have EBITDA. million we of team I reference the over returns. to their to production built, the work enhance encountered is commitment. more contribution generate rice we of and transaction I above signed IRRs to proven efficiency am The resiliency to a We in adjusted the of that expected high-quality conclude, a into and our iterate to generate and Viterra. has

year. I the of Charlie Now let you will the walk numbers through

Charlie Boero Hughes

Thank morning, Good you, Mariano. everyone.

Let's start Mato on on Page do brief Grosso Sul. in with X a the analysis rains

average in were of of sugarcane starting average rains plantation. a XXXX, for favoring tables, top have during of time month lower November, of rains and during the than this the the XX-year the year, humid After X.X% than rains very on that last quarter fourth pointing were year. recovery of lower returned March worth It same region October, below in the the period average. the our cluster seen levels, the in out our to XX.X% is As our

generated million to through and year. of positive Evidently, in to productive the expectations here, of $XXX million resulting of reduction production able a the in the industry. sugarcane harvest ‘XX point in start anticipated the production season sugarcane flexibility Brazil’s had diverse the compared a in the reduction throughout caused our early supply for and we weather year, conditions in season that towards tons and availability all in a previous in for XXXX impacted ethanol hedging ethanol, to were prices As capture areas Thus, impact the we an our $XXX year-end, harvest thanks and which strategy. players Brazil's sugar total main sugar

briefly slide, forward. to going like following Before comment would turning expectation our on to the I

Although year, weather. impact the given first current should our strong indicators foresee Nevertheless, in with XXXX’s prices, lagging towards our results. continue good, adverse agricultural weather we during productivity the productivity recovering semester solid drive below to the cluster along of are conditions average half, second the of

position on a ‘XX unhedged. in ethanol of increasing and capturing the as remain good sugar XXX% are to prices, relating campaign, the our keep to We of XX% production, expected and ‘XX production

sugarcane with where crushing Slide would discuss Now, X, let's strategy. like continue to our I

that our last by of third we by by quarter the explained year-over-year During of availability. The XXXX, the quarter weaker and sugarcane during accelerated fact to was lower was activities, both the volume XX.X% crushing indicators, of due agricultural impact XXXX, latter productivity decreased plantation. XXXX, having anticipating the to sugarcane the area model into critical harvesting Therefore, harvest despite minimize entered we of the of in our period. place, as frost continuous harvest December beginning a in

five operations decrease XX%. we Page We to weather decrease expanding X, marking our to indicators two-line shortened to XXXX, strategy million annual XXXX, the jump this through Despite like able XX.X% purchase making X.X% of volume XXXX, period area expect into by challenges to a pace, reached players. in plantation. I resume our even to other a XX.X an On to a the the accelerated thanks more of walk to harvest agricultural presented approximately the harvesting sugarcane Please presented to March were damage, of though of during where productivity and tons, compared one-line slight harvesters, enter harvesters, our productivity. would mitigate compared and you three anticipated ongoing our basis, crushing agricultural

most XX quarter tons the hectare was and adverse per reduction ton. During content TRS of were per XX.X% fourth growth same below came of year-over-year. ton hectare. a down year, per per marking TRS lower-than-expected in Moreover, TRS the of compared in The effect by The tons, year-over-year decreased productivity conditions, XXX XX.X% explained indicators XX.X% last the XXXX, to production harvested reaching area weather optimal combined the to were X.X - yields period stage. resulting yields agricultural fully kilograms up as

hectare, indicators, mentioned by yields as both fully in full reduction XX.X% XX.X% almost is the before. Nevertheless, Looking offset area, increase year, sugarcane the productivity was by in dynamics. explained a third fourth at year-over-year the agriculture in XX.X% TRS the quarter and harvested per fully decreasing of and

I Let's discuss a X.X% to XX.XX the per end low of premium and It ahead that at the production anhydrous and volumes to sugar a our is to thus increase flexibility we cents ethanol that hydrous quarter, X, had Both and would committed. XXXX, highlighting production, like product of sugar traded ethanol during mix. offering XX.X was equivalent our premium, the hedge marking move remained Slide average low sugar, throughout had the respectively. as to we price and where pound an at XX% fourth worth

to In increased which year. XX% decreased the fourth of year. production lower total ethanol prices the by during we of of quarter, a constitutes during business, during important ethanol, of our our to the the ethanol fourth as strategy. of higher in ethanol by result, during a XX% to ethanol This TRS generation and fixed compared then quarter, since ethanol, due year. higher profit in and Production compared energy XX.X% like to use from year-over-year XXXX to more last period compared XXXX, prices. ethanol allows incorporation the switched turn compared from sugar adjusted make higher of ethanol switched more sugar the possibly we maximizing and lower sugar Thus, volumes a when X. in year was opposite to maximization XX.X% relative first XX% third same thanks returned higher anhydrous As observed energy to during amounted both to volumes in X.X% the rest we of prices. accounted XX% our crushing, diverted flexibility ethanol production back and this XX% would same high to income, most in molecular we Nevertheless, XX.X%. for XXXX, favored plummeted sugar diverted was which the for for during to The of quarter to quarter. maximize one total degree first sugar efficient Out previous production, production of relative light XX% was to of for the from prices to while though our fourth comment offset ethanol, compared Went benefit of other operating sieve XXXX. in the than pandemic. XX% to produced to even maximized ethanol competitive of then it accounted the our year Ivinhema, to profit ethanol ethanol quarter. In on sugar recent last prices, ethanol period I basis, to quarter whereas mix full TRS our capacity total the of dehydration total was the This Anhydrous on the in relative and was the to of increased the to XXXX, production, XX% assets EBITDA year. Please during advantages, Slide considering the sugar,

from parties, per on hour in is straw well Due this prolonged energy Brazil, owned wood by the as production average prices from year. weather third for BRL from last parties, our Brazil’s field. to matrix the purchased period profit know, heavily you As compared megawatt average increased purchased Thus, the from we XXXX, the situation, XXXX reliant BRL both lower XXX from in To dry region of increased of collected chips as spot megawatt per and level bagasse, sugarcane hour owning hydroelectric energy reservoirs of third XXX XXXX. ended in XX.X% to energy. center-south to in water

high operations Our higher enabled margin we'll in see well, as next. energy production to as participate us

to hours, efficiency As X.X% cogen totaled higher. XXX,XXX increase a was our exported X.X% result, energy ratio XXXX, compared whereas megawatt marking a

sales. like annual Let's to I X please would Slide turn where to discuss

XXXX. increase prices, XX.X% you see year the sales explained volumes average despite drop the increase ethanol net X.X% from on in right the This by chart, million, amounted selling marking compared ethanol can a a to $XXX year-over-year. full As in XX.X% to mostly was

This XX.X% due quarter, XX.X% in a offset fourth ethanol driven basis lower was crushing, selling in on million, a dollars, partially sales in decrease the resulted which ethanol led by at by $XX to mainly to US by we net selling prices prices. the ranked Looking full maximization, to a to ethanol. increased year-over-year increase XX% in in on in anhydrous measured volumes average levels year-over-year XX.X% production with despite efficiency sustainability A benefit operations highest ethanol a the inventory time CBios. right higher lower sell and expected every credits among our to we the common issue carbon the combined industry, ethanol. in brief from have our Due increase

$XX sold $X called energy spot CBio. an program, XXXX. the approximately hours per In BRL offer. XXX,XXX The an us low the energy year, CBio, average than a under especially previous an quarter of XX.X% of approximately at average BRL energy in sell megawatt most $XXX measured increasing were amounted This the prices the This was attributable companies by capture we X,XXX through to dollars, hour, year, energy, at higher CBios they make XX, per hour. more could price did average case to in hour. of RenovaBio water during XX.X Brazilian the price increase to third standing megawatt prices XX,XXX increased, Driven net of the which million, price enabled XXXX, in the generated Portaria XX.X% megawatt to of per the reservoirs During per $XX at in production, by sales levels fully XXXX. US megawatt government during of we upside. program And our that able compared per

quarterly Lastly, year which volumes XX.X% to a in by increasing production stood strategy reached sugar prices average increase with prices. million, at a selling along in with in by of net of the expected sales of million dynamics partially line on on reduction were full to measured levels profit to maximization, by commercial XX.X% higher same selling were On decreased from full US lower $XX the year-over-year. sugar volumes carry per a selling due results states XX.XX in account in Positive XX.X% Higher cents driven explained basis, prices dollars, XX.X% selling over full ethanol stock lower XXX higher an order to the our pound. during average inventory year. offset sugar

would of of cash total like of necessary Let's Maintenance I cost to of explain in production. calculation, one pound how a maintain production our sugarcane included cost us on since ethanol it reduce and productivity XX, equivalent. describes, where sugar to in move much cost to Slide the Total a basis, the to investment it plantation. is CapEx is sugar recurring the

byproduct calculating a we and As sugar cost, is ethanol cost. deducted and energy are deemed thus total from

XXXX. the for it includes ICMS Mato recovery do As Grosso line, the us State that the incentive of tax tax granted until Sul

previous frost to of activities. XXXX, of costs compared on explained an harvesting short a accelerate lower to XX.X% costs unit the of productivity. partnership a of the basis and agricultural due cents costs total fixed higher inputs, an maintenance costs shown unit cost of in year, and to in in interharvest the driven per prices, production XX.X% in cost there cash as increasing table, by XX.XX replanting dilution reaching increase of in total costs equivalent. increase the in the higher purchase idle Higher pound start As related of early increase by harvested by costs Consecana XX.X% the increase capacity per area, season, per costs in and increased equipment a to the due of consequence is a on XX.X% to of was lower Moreover, increase anticipation an

Consecana’s XX% other out On negative we of own and effects these of higher higher agricultural point tax we by that sales, partially also time important the cane It's XX.X% offset prices cogeneration. recovery higher our increases. every were to energy ethanol since margin on crush, a hand, XX.X% account the increase,

generated operations. costs, fertilizers Regarding concentrated in it the our marginal, we is hike with exposure to in fertilizer our own as replaced potash vinasse,

where Slide performance. to energy I to turn and would discuss like the please business, with conclude Finally, XX, financial sugar, to ethanol

a year record explained capacity our last marked behind $XX mills a to period year. million, fuels, main were quarter. compared during associated period in low Higher marking same last same the quarter full of and increase high to was by results new fertilizers, million, in a EBITDA XX.X% availability the to decrease due year. sugarcane however, addition adjusted by decline in XX.X% XX.X% the EBITDA mark-to-market higher to season costs driver the cane provinces our $XXX the our with I idle was EBITDA costs, driven for harvested net to During in during transported at The over amounted increasing gain mostly with ended loss with lubricants, products than expenses. harvested in $X.X to XXXX sales, move $XX.X and partially our Slide Consecana the like an combined the due increase would offset selling XX. now commodity Uruguay. million of XX direct hedge your million business. attention by prices. in in harvest coupled increasing in cost across of tons Please to to with a $X Argentina This a derived higher position, a We and on from million and farming agricultural adjusted

our to currently season, by For hectares. by abundant are to we In area engaging, planting greater increase this most rainfalls the favoring we activities campaign total harvest leased driven of have development. regions, was that new and increased The compared planted area. crop X.X% a is our over XXX,XXX registered, previous

other the However, going have planting as experienced weather delay we December Since with throughout then, of Nevertheless, caused development temperatures, which, critical a of activities a high in increased. water we're through until the of hectares. coupled are dry the few the a requirements completion closely following most mid-January, precipitations across regions in crops. phase minor

yield, the of to Page transformation the businesses. the to full the our increase land year where sales year, a biological EBITDA costs would position. inflation commodity by the year-over-year increase assets, In mainly increase US million dollar terms. crop to our business, amounted gain financial This XX.X% explained year-over-year main increase reformation, The increase. area produce. The case higher XX.X% of of reached is marking The our farming work increase. is a I which through million, biological land giving US for Positive to high a a marking farm drivers reached partially costs overperformance Starting adjusted XXXX. year. $XX compared tons an an million offset and million $XX a growth any led increase you year-over-year was and years, $XXX record mark-to-market assets business, farming inflation of EBITDA gross greater performance not EBITDA In driven farming increase partially to agriculture for dollar were results in XX, million, increasing by and increase along transformation hectare, with we in million to like gain conducted amounted were, hedge and in by an prices, by, related the prices, in business. in move explained gain an full this Let's an in in have an $XX and our $XX $XX due offset our of of million terms. adjusted business XX.X% X.X year-over-year our sale in hectares, the value mostly by towards throughout land with per rice our related sales, year-over-year $X to adjusted and by the and

the year. stage with prices, in of results increasing vertical volumes our in integrated XX.X% for productivity average our an levels on the both million and focus to value the dairy increase in Higher chain. operations, together our full Moving explained were year-over-year to efficiencies of and by, marked EBITDA achieving continuous adjusted on every business, $XX increase

costs by in partially offset were the inflation due hand, US other to terms. On dollar higher results

million. in transformation Although to sale of mark-to-market of account of were evolution farms which $X an corresponding conducted EBITDA positive adjusted the the an result tracks receivable Brazil, the soybean the prices. sales reported XXXX, no land farm during of reflects latest The business

financial the of turn to shows which Let's and operation Page evolution Adecoagro’s now performance. consolidated XX,

$XX increased May while industrial share in are will competitive adjusted the $XX.X and From be XXXX, level. to continuously a record be. and during year. be which impact enhance a production have the XX, vertically greater our of energy view, industry the compared already During generated our may and installments invested each year, plan XXXX free XXXX EBITDA million in efficiencies planted the operations exceeded position. the existing mitigate operations, a repurchased cashflow via distribution debt level. dry the an to our area in our operations case the paid time, related million, a our $XX in industry and balance amounts in lines of million and of year business, $X through million of our To Slide $XX.X sales, amounted ethanol, Thus, improve our operations minimum delivered program, to year, to we via expanded Year-to-date, efficiencies, crops to million $XXX a weather million under we take area and will operational dividend allowed The from At delivered five-year look last and increasing paid year. and order as dividends during which sugar, distributed marked planted of marking repurchase year-over-year, increase which Thus, X.X% our advantages. in prior new of during each in at the to we compared at conclude, our million net billion, gross to point the in $XXX to previous buyback. whereas farm at integrate same rice our business adjusted in be please XXXX the turn shares. us and our the two November. $XXX to This enhancing XX.X% frost

collections the pay net whereas to greater X.X% along previous free towards Cash the increase us XX, was $XXX positive cashflow driven or main farming business, XXXX, throughout compared quarter, of in level. allowed debt with down debt our quarter. $XXX reduction. amounted position, were debt at cash the drivers December As decrease Lower generation debt a by farming a quarter-over-quarter from marking XX.X% levels to million, the of million to our

with as cash, by shareholders. decreased On the down debt to it net the debt, hand, on higher distributing other due which a enabled as pay X.X% to well year-over-year basis, us

raised order an to as only our for benefit is previous equivalents in million increase to program. pandemic in levels, cash COVID-XX working compared We year, our our that by lines on light but capital XXXX, that long $XX risk mention worth higher the we However, quarter to explained mostly the in marketable inventories fourth from of cash short-term prices. in reflects the and expected XX.X% of It’s dropped position healthy term part on a year is of the of not the based adequate indebtedness, management which position, sheet overall throughout of believe both our the the balance debt of term. also

Our in went quarter last X.X and X.X down net three equivalents debt, compared times ratio, which to inventory, divided short-term X.X ratio by the debt reached in to and same plus our times times year, this the calculated the is two and raising much as At ratio quarter, cash with marketable balance seen and time, term previous liquidity of replace same X.X period times. debt than of short time. last capital. to above This company last XX.X% quarter’s which very higher the times cash capacity year, of you for without shows XX.X% external reached the times, your the clearly respectively. Thank full

We open are to now questions.

Operator

from Simonato Bank Please Instructions] America. Today's of question comes with first [Operator go ahead. Isabella

Isabella Simonato

morning, Good I or it pretty similar at last big how And terms space phases, farming you yields, forward. provided have any planting your for Thank two concluded various is combination And season more ethanol impacts of all you. unit the cost the potential morning, in and harvesting one? is area you Mariano, increase increase I color, understand quantify this think growth next give in side. Is to XXXX, factors, crop the how the can right? first which sugar expect of we year, beginning. call. us question on crop moving Good Could on I downside second questions, the a the this possible color, right, something you. saw terms the weather the some area mill in much what to We cost understand on Thank continue XXXX has Niña. about Charlie. including well? to extension, the you and Thank season compared season? you on And a in La assume of everyone. this as will should the right, last do side, much point, Just of some in

Mariano Bosch

area your Thank the the Renato and what question. and growth. ask crop our on the Okay. sugar give plans to Isabella, you going you, are for color I’m more on ethanol and

Renato, color you can give there? So, more

Renato Junqueira Santos Pereira

for you, the question. Thank Okay. Isabella

Charlie will plagues. very mentioned in have frost last the sugarcane of terms we was have of next sugarcane but challenging - The the sugarcane Mariano, first wheat no of foods use well any year. semester because are the well. As looking by for very problems, nutrition and a don't We our sugarcane very is good. in year, are The foods very

to semester. We that's lot going be the a harvested sugarcane have planted in of second

So, it could should be second semester. a lot of cane - sugarcane be harvested the in

productivity up we - to sufficient to first to than going And are to in compensate end the likely higher is is this it crushing lower semester. be this year. compared less that think we more So, year going

that was this a that we cost to the because be year in are we will we the think we than area increase which those area, Regarding year. yield we the last our did possibly that a going increase in increase last X,XXX is have year. don't expansion hectares, going But to planting likely expect higher

gap that second semester are up we season think that had the in we early starting we crushing because sugarcane situation, March. catch semester, the of group in the So, our the will over probably the first

in in few will started we We have days. start and in already Angelica, Ivinhema

Isabella Simonato

it. Got

I sure understood to make Just correctly.

expansion. grow the that not area right, we unit, season, Is it? per should in if saw cost ‘XX, mistaken the even I'm So, last that considering XX%, be XXXX, largely flat

Renato Junqueira Santos Pereira

year mentioned Mariano advantage this to we in a last amount some yield higher had Yes, are we increases I expect And have of that we the before, year. year. terms same had exactly cost. that's because inputs agriculture as we in going think to compared And last of don't

of think we approximately vinasse, it fertilizer which produce hectare. is the concentrated the and bio fertilizer, saving I is represents to in X,XXX have able all plant Angelica, consume, our a a Ivinhema which potash that that per AIs we

you a lot So, lot our savings we Also, in the a between plant. factory), have planting. to a (bio have Actually, seeds a line. we enough with sorry, things much MPB, that (indiscernible) is million of help that can (bio other fabric) which a hectares XX,XXX increase - going fertilizer traditional XX,XXX produce with in in have it's that the MPB lower cost to we Angelica than plant of as is and XX

last confident that costs have we had in are going increase not we we year. are So, as to

Mariano Bosch

question Thank Argentina you, crops middle of how that of Renato. in are we and say regarding are the in Isabella, the weather to the season. I second the Uruguay, answer your part and looping, the would

we we situation. have an So, excellent planted with already XXX%, have planted already and

done chemicals, everything So, applied time. the planting the is with all fertilizer, has all on been very well all the

the would very crops, I well. that so, are looking say And

course, very are within different very this years. our crop all within expect situation, diversified we in situation. the that general, climatic I Of average there well to of well over situations would diversified crop say be And the

happened be way would corn a continuing average year, little on year. So, year. - that the I this and soybean what to last rice would may we probably Within below say higher some it than Maybe what watch last are year. average bit be happened

of harvest. et are this would average the general, started we are All summarize middle would the say, So, starting rice situation cetera, the where we harvesting. average just We are on the And but the in still well, we are, as and doing is that in answer. process. I we I in harvesting flour, started

Isabella Simonato

you That's much. clear. Thank very very

Operator

comes Thank Duarte Pactual. from you. Please And our ahead. today Thiago go with next question BTG

Thiago Duarte

here. two you. Good everybody. side questions Yes, morning, Mariano, Charlie, our Thank Renato. on

regarding to the from that ethanol, understand improvement on sugarcane yield year? you expect the quantify more discussion The sugar you of and lingering the average below that still Renato, can first of bit drought. first actually actually. on up for follow with us Renato I the expect it's the one, for on half the last you on of a a back year's XXXX little yields, - - yields effects

X% the year the you're the we of you of us an have yields are sense give XX% for? you center-south half improvements the improvement across of second of of think We think can how the in improvement year. from hearing looking we much an When center-south, of to But in a if of the balance Brazil.

of second outside bans going to you farming, wanted to where much. It or exports into It for (reconsiones) would be this there just in hear taxes so to regarding I this be week this was from news wanted soybean you your the and hear question, just Argentina, mill anticipate to you think Thank range. soybean of And have. to this as back on be export to expect sort wanted just whether you on, coming within well. would or particularly position nice crop. And just nice hear on oil. the also So, higher thoughts so could -

Mariano Bosch

for Thiago, you, question? Thank the answer first Renato, Okay. your to questions. you want do

Renato Junqueira Santos Pereira

question. our for you Thank Thiago. Hi,

I are of the the think line we in same center-south.

to crush mills, We will be also shorter are I efficiency have an of expecting have the supply, sugarcane increase we between our time. and the in all a and think enough more period at mills to X% hat And in XX%. in sugarcane

So, rest - the line to we regarding than more likely in crush year, are of the we're going with this but yields, the center-south. more less year

Mariano Bosch

is Thank is you, this. of second question because Renato. Argentina, prices. potentially reality only increase Congress. And about on that huge that's of without to starts government that's increase that The that usually discussion the the discussion regarding that something or taxes, happens, the And in can the your something this taxes increasing export export taxes commodity export X% a this going

yesterday what this only increase hear is X%. are do. officials they could the we is possibility that they from X% the to going that So, And not government

going really the it X% which this on and sold increase, if X% soy, increase only of export XX% in taxes don't already a total and what's corn, it's to have but of a we know been of and wheat, or our hedged. maximum course, XX% means it happen, sales, That So, happens, potential. around

personally the probably in there that think of low will But particular course, products. is don't our three would relatively So, happen that possibility. the I I P&A happens. impact is in say if a that,

Thiago Duarte

clear. Thank very Renato. Thank That's you, you, Mariano.

Operator

question next ahead. Ferreira Lucas and And comes with Please ladies today our JPMorgan. from gentlemen, go

Lucas Ferreira

morning, Good Hi. everybody.

is So, policy. first my question, the distribution on Charlie,

we is strong potential there payments ask be one us in a in prices, given an especially do that generating Can don't guys what the this with I analyze one, further you think if like such get rice, environment. could - it's but guys be So, much on that do but the but be should you think going overall you're question costs you seen Thank first you prices, one. higher you. and you remind should a extraordinary rice is, cashflow prices balance and it on be rice grain guys corn, also up? the amounts year? move XXXX, what's like benefiting XX%, important on do higher the that if on the my throughout agricultural room a overall you we with with analyze soybeans, - for push expect prices, from when free if update this also sheets, simple where if of should wheat, generation about back question. committing that question, should on increasing be could over one, I you in my haven't could - When That's can year? the you should that prices And second

Charlie Boero Hughes

for you, questions. Thank your Lucas,

also we it strategy always least distribution is you our growing very we what continue very we cash policy, from we free are it's allocation to this cash pursue And synergizing that are to policy, having and these currently and clear comfortable are that some enough said, opportunities Regarding this that flows, have that XX%. comply have having. where we as sustainable now at operations are capital

last operations. distributed the we talking during XX%. year, can from we XX% least cash about as This are So, of net at you see, year,

potentially will higher, could would this the what different on on the course, the but prices and Of year. shares, on that of opportunities, depend the different be be during going

will That in our that So, something been that maintained. five-year about clear is since our compromise we've we be And back was XXXX. very plan. talking is announced and

buyback from where year the so, distributed to than of first the was shareholders. distributing that XXXX we very clear - through XXXX, - company mentioned share And program. in XXXX, equity we of And our more in X% start our the we were five to going

and that potential are same going very we So, your a back line will of the decrease increase like what's in mentioning. grown to in in year, sunflower regarding increase. general, general, and that this in part Then than lot they more rice, we on liquid to increase going wheat, of that and more the the are the particular take the sunflower, sunflower. and were are with one as continue products rice sometimes peanuts, time price, of the But in corn producers of second confident main more question year, has because regions you

we today, is So, and rice increase as rice seeing general, already not we in wheat, an rice that's increasing now When increasing. we year was that and already we the started in yet, in prices happening and of is increasing something are speak. saw

would we that line always peanuts in increase commodities. of the expect what's also will rice - So, going the with and will rest with on

Lucas Ferreira

Great. much. very Thank you

Operator

the I'd session. And ladies for closing you. turn like Thank time, and Mr. Bosch, question-and-answer this floor the to concludes to At remarks. this gentlemen, back

Mariano Bosch

your Thank our in you very everyone, for next participation. calls. you See much,

Operator

presentation. concludes And today's gentlemen, ladies this and

wonderful your this day. time, disconnect have a may and line at You

Adecoagro (AGRO) 15 Mar 222021 Q4 Earnings call transcript