AGRO - Earnings call transcript Q1 2022

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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 First Quarter 2022 Results Conference Call. Today with us we have Mr. Mariano Bosch, CEO, and Mr. CFO. Hughes, Boero Charlie to all that a participants company's during like being listen-only event recorded the and will presentation. inform would this you is mode We be in remarks a company's After will completed, be the question-and-answer are section. there this be further will At time, given. instructions let available proceeding, that mention to the the Before based management and forward-looking of and company. assumptions Instructions] Adecoagro's are on on me [Operator statements beliefs information currently or on may relate risks, occur to because future circumstances uncertainties, that therefore and involve future. may They the they depend not in and events assumptions also Investors differ industry should and understand conditions, expressed and that to the forward-looking general from materially economic other conditions, operating future such factors affect results in Adecoagro, of results those could cause statements. could

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

Mariano Bosch

joining thank Adecoagro's first and quarter morning you results XXXX conference. Good for

policy. achieved. In first will in and the during program operations in this XX that shareholder per we of This time, the and making distribution cash a our going and the to is a approximately share. shares into last dividend Adecoagro quarter, days meeting then month, we First distribution of of the in line mention history, results that installments. buyback That dividends like annual in two and At of the payment milestone installment our the the same for a the be first with our would amount our time million. couple $XX.X has $X.XX before approved million continue new I of our buying

business. the start I quarter, would sugar, into to getting Now, the of ethanol, energy and highlights with the like

weather how valuable most The is Depending first of always crashed. terms quarter much conditions. is gain in the on

period not we crush inter-harvest anticipated had past make As finished decided perform maintenance all availability less we in our of tasks. a and cane year cane, short and that and mid-March took advantage round to conferences, of in

was the the result, during [Indiscernible] As quarter slow. a

In thanks stood generation We forward were inventories prices first the at profit quarter to the of of of that sold the a record full meters attractive positioned maybe cubic we of to and sugar. in beginning the on only captured say our said, new year. would from for means one of second price well ethanol, inventories XX.X spectacular at We made and carry we solid per I a ethanol remaining the daily than at tank the Email. ethanol ended equivalent, XX% pound an XXX,XXX However, sugar all to quarter. of strategy this levels. production of April, of our month. a our higher time especially this with our average that With of prices, price

million to to in end expectations year the highlight achieved to the up segment, conclude would allows the our results line relevant become In XXXX, those like Since at sale beginning us of more of only weather CBios to considering catalog of the $XX addition, To for were our maximizing part generate [Indiscernible]. ethanol with I of events. the make of million a have sale sold we $X The grades. expect production revenue. and

to continue strategy. from Our and to to and are have thanks flexibility our And April scenario crashing Good the forecast anhydrous rest remains year price our productivity sugar of to outlook, needed. sugar from ethanol we for switch and unchanged. rains in our improved as confident the producing the assets will open hydrous of March position take we advantage to

business. transformation our farming and land to Moving

the our Due harvesting agriculture forecast. planting the currently XXXX, crop for years our And with on are the operations analyze basis plan to last rather season. we agricultural the are results We expect campaign line undergoing than next for achieve we an seasonality on annual we operation of And generation, in quarter. our in our activities cash by year. line to activities annual basis, with and designing XXXX with this

the example, capture very business, are our For And in for well-positioned the the we attractive. products them. fight crop we of increasing to [Indiscernible] produce are cost

mitigate being business, in order recent we into prices a a which In part to this Pietra drive I an conclude, gratitude commodities. To growing the scarcity of increasing view. of XX employees, increase environmental into to and In work expanded while our called from the have well-positioned will which milk, expect hard manure used that of of to by company of more will this drive advantages [Indiscernible]. position recycle export and We inputs, these, summarize At an daily excellent of saying we such providing and smaller over the model I our business, allows other allows diversification, In us benefit rice our markets. yet produce and the is point and our want experience overall is only sense the from we record byproducts operations. reiterate proud copy contractors them And last our the Uruguay ahead. for And the we EBITDA Uruguayan levels they in our to with transform rice current not to am my increase in less. addition, the thanks operation. the achieved provide acquisition the I time have they context high or demanded of commitment. to were optimum are will quality risk production advantages. energy [Indiscernible] our regions are were as transaction well and risk, the operational the business, benefits a a transform products but rice yields of value-added top into as with business own to to high-quality weather as sustainable and with also where The bring cost. The us our by food commercial domestic costs continue competitive our on production bio-fertilizer mitigate lower opportunities increase in together of as in we production an years expect reduction in at all than of about in renewable rice building excited year. operate we us achieved we as to and rice, weather past logistic production natural that not high-quality are efficient

Charlie Boero Hughes

Thank you, everyone. Mariano. Good morning,

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

recovery three the March rainfalls and lower last As below cluster rains our during plantation. sugarcane XX.X% year seen on April first our were of top the XX.X% were above-average, of year, in the the same during average. tables, the period than Nevertheless, and during XX-year the months of favoring

Grosso even in to normally means year, and and based Sul ethanol the weather the operates quarter of our on we the harvest of interharvest cane industry. around Brazil's model. sugar cluster do normal, Mato These which is crush first during harvest Our going period can continuous that subject traditional

several already anticipated beginning in the conditions in we had knew, weather and towards As observed year-end a of sugarcane caused and opportunities, XXXX adverse XXXX. in availability reduction

December tons. in entered resumed activities. mid-March we period XXXX, XXX,XXX result, decreased into crushing year-over-year, until interharvest an Thus, reaching XXXX XX.X% volumes a As our when we

will date already to All hectares later be planted recover. them a at and further to allow been of have harvested our

slow reach to walk line would agricultural volume the for jump a up page through productivity. year. Please in X where last in you our quarters with like start crushing make to to expect the We following and I

the yields during down hectare. TRS the expecting a were we XX tons year-over-year, XX.X% XXX were per decreased three reaching Whereas first months XX% year, kilograms per of ton ton. per to As

By growth related than fully to year. areas grow plant to greater the and we capture attractive As new and the and we XX.X% to This yielding mainly decline potential, which that season. continue be the a was is with were above. harvesting ethanol to doing produce lower harvested liberating result, able limited area this, hectare while [Indiscernible] last TRS focus related on production potential high cane, prices allowing areas per fact next will [Indiscernible] reform with to to

Before turning that a achieved the of not following our important expectations the highlight are it the slide, results for reflection full-year. to is to

March of productivity allow April. good positive terms pace constructed cane us and and scenario. a have advantage the continue crushing increase will and This to in take We availability by rains our outlook favored price to in of

TRS Quarter XX% total which relative ethanol ethanol, the in compared competitive degree the allows ethanol diverted profit was to of XX% efficient our in ethanol, discuss to assets XX% most than of XX.X% generation other sugar, operating selling prices we higher prices. were of of our year. prices. slide, of issue XX% First of able Slide and average a first adjusted price The anhydrous sugar offset us quarter for I in business inventories, sugar equivalent, accounted of hydrous in XXXX, to our same XX.X% prices. during our crushing an to in at per high period with flexibility to anhydrous To increasing production EBITDA and average last relative in the sugar. Thus, decline was thanks considering lower of XX.X higher fixed marking the advantages mix. of more and higher traded XXXX our X.X% ahead constitutes to period both higher XX% We of ethanol it of the make production from to one ethanol and were In and due case premium X capture of where the move by important case conclude ethanol, total would energy a since Out to use beginning this to from This to pound like income. ethanol, Let's production, and our XX.XXX respectively. profit

of While sugar quarter the during the accounted first year. for XX.X%

Slide the like turn would to quarter. where discuss Let's sales please our X, I throughout to

efficiency hike consumption benefit able the forward a in the to due the pricing sales on XX,XXX while our of XX,XXX start the amounted setting sold ethanol for that these of record right of see That the anhydrous were were XX% than of XX.X% new in XXXX, average attractive a the were the carry As XXXX, oil greater and cents ethanol. by chart, XXX,XXX A activities in our issue prices being production. push over led harvesting in XX.X ethanol Half marking to amounting we and have along including carbon national hydrous reduction late brief the quarter you high point to ethanol start we pound we price among ethanol. in we cubic a the on cubic in during and to February. to meters our out new Despite ethanol yield highest to rebound Brazil, marked on by credits strategy for anhydrous quarter increase operations the in mainly cubic compared have in hydrous of per commercial production, sugar to April April in ethanol. from sustainability during every exported. our an for At meters the [Indiscernible] right to March other ranked to the This meters inventories. monthly average equivalent, first $XX sales a driven of with of CBios, time sell prices, will of expected said, cubic industry, the year-over-year comment the million, in had year-over-year ethanol prices, net meters the higher high at and quarter inventories XX,XXX were of ethanol due can the sales sold

our was XX.X% the worth of selling in a on program. million, fully sales XX.X% net RenovaBio reservoirs. decrease This sold decline of a year, prices with selling to the higher million year-over-year decrease. of the the In During $X average along of under case levels volumes, attributable marking first water two in to average quarter in amounted energy, XX.X% we CBios

a believe 'XX, in sugar XX% we related XX% quarter million. offset a sugar by driven increase we XX.X% 'XX reached the continue of capturing a of This position to prices, selling due to during still the good sales the cents prices Nevertheless, pound. in was net have volumes of the XX.X% campaign. in unhedged $X production, and which declined increasing XX.X per partially to as to average XX.X% net Lastly, lower we decrease by year-over-year production are ethanol

lower adjusted XX energy year. conclude discuss financial our to the like your in sales in line Brazilian where to driven sorted of EBITDA direct move engaged results by were with the started an million our as eight sugarcane, business, quarter activities during XX. along well of impacted results Please a would mark-to-market driven hedge the of like with million ethanol to mainly Coupled an were turn thus the please commodity I $X Slide short Nevertheless, farming business. registered. the to and now the as harvesting gain first currency, with Despite by by the fuels, attention to in increase appreciation to Finally, and costs, These production mark-to-market and Slide was the I fertilizers, lubricants. position. million in low Nate last on with performance. mostly $XX the would

our accounting XXXX of total and campaign X.X% a season. completed the planted have compared marking activities We the a have 'XX increase in in area for XXX,XXX we which to hectares, previous

with Soybean, sunflower, increase the and largest cotton, the were crops planted area. in

harvesting our currently most undergoing of are for activities We grains.

of the of As hectares, XXXX, of area of and or of end over aggregate XXX,XXX harvested total April we produced XX% XXX,XXX grains. tons

last quarter, transformation XX.X% where into XX.X% an transformation would The and moment farms, by to you million, our in same of X% year. businesses. prices explained to EBITDA the our impact walk business same our Adjusted the period to like reduced amounted performance $X yields in due decline year. La and a through fully for of which and I by contribution the the some availability the marking compared of Let's from rice water rice of to financial land The year-over-year businesses farming last move to lower mainly reached by the is decrease explained million period to of lower harvest. EBITDA Niña below Page $XX farming results. declining business first Adjusted in land overall decline the XX of a the is our at

believe results. geographic also inflation rice enabled addition, By and the us In we into well to risks. negatively Argentina will business costs Uruguay, due mitigate U.S. higher diversification our expanding in impacted to dollars

our EBITDA XX sales. million X.X% year-over-year is gross to of amounted drive into partially to loss due $XX gain our costs adjusted hedge The increase. were inflation the higher on position and assets And offset commodity the in prices. $X year-over-year which crop marking area by to business, drove the increase in Going planted U.S. million, and a a Results mark-to-market main related expenses. biological we're in a of our terms, and better mark-to-market dollar million

U.S. transformation, EBITDA Brazil, integrated the soybean. of volumes increase to accounted of marked positive continuous case of prices higher Moving higher the were corn sales year-over-year sale terms XX% and of the cost and explained Again, onto offset although adjusted latest were of Higher dairy tracks by in feed cost farm achieving results in no focus the million. evolution of an due efficiencies business, results were reflect conducted, dollar the of both $X receivable increase the prices soybean partially on and our in mark-to-market the vertically due farms inflation and In which operations. of land in an results corresponding to average higher prices. by to our to

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

that to carry thanks compared weather to despite XX.X% strategy is expanded Whereas, year. our to decline marking to million. sales prices adjusted $XX EBITDA to the gross to were highlight unable It high commercial period stocks. Our capture worth XX.X% last a to over we of year-over-year $XXX amounted our same million, challenges,

we As from to to in the expected production lower attractive mentioned and the volumes following for up before, continue prices. quarters benefit make

the in on gain Lastly, experience our P&L. dollar, causing with we where currency, our compared losses functional an regions operate consequently, the to FX changes impact which the currencies line is may our reporting U.S.

both Brazilian in income, currencies neutralized rich year, level adjusted this construction. in real, And first in net three is in appreciate of of currency. debt net but During our decrease terms in real our our again especially later months hence local the the our a functional causing income

to please to details turn at to look XXXX XX earnings a X Page release. please first debt more take conclude, refer our of Slide our For To quarter matter, position. net the on

debt or in of As position. our XXst million along fully March gross quarter was compared XX.X% amounted explained of This the increase cash higher to a XXX by reduction XX.X% XXXX, net a to million, debt, XX.X% fourth XXX in with XXXX. the

generated we The crops in the our our be capital sugarcane Thus, seasonality than requirements industry Whereas first cash-generation. sales of perform most our the cash by important maintenance our are annually our analyzed rather we second highest should in and that of semester semester, working all the collect the CapEx planted. it operations the even the to highlight is of as and by products. quarter, has

reduce that in soybean X.X%. which We the explained mostly and prices This on basis, not corn. most capital marketable increase to first harvesting the but as by of also and in believe the second our On requirements debt and expect based overall million our carry working adequate our especially an of higher is continue by indebtedness and compared to our third over with healthy only by throughout quarter. the is higher balance led increased year-over-year indebtedness, of net of quarter $XX we inventories debt. debt is activities We long-term the position, XXXX, on sheet a levels, term stock a

as debt net the up quarter divided the the did of times the times. flattish time, in This with At our short-term reached Thank quarter Whereas, previous the ratio, equivalence X.X external capacity debt is much by compared [Indiscernible]. first marketable X.X remain ratio short-term calculated times Our quarter. for cash clearly raising balance cash the same company shows to this plus your to and liquidity time. in without you of debt to went repay very full XXXX. inventories it X.X which versus

We to open are now questions.

Operator

the Ladies for floor is questions. and this time, gentlemen, open at

Instructions]. And from go questions. ahead question. today for handset Bank do were ask to pick If order you of when We your your first your that Questions question be while comes you provide they question, Please will the pose up with you Palhares that from hold [Operator in a taken received. have in quality. Please which Guilherme our optimum we America. poll sound question

Guilherme Palhares

morning, you Thank side our Good question. actually. from my Two for everyone. questions taking

in first ethanol The one [Indiscernible] the and sugar business.

terms to trying this of season. a just are understand the We the strategy in [Indiscernible] bit of

What business other you is of what regarding diesel and the ethanol, looking prices given in in both seeing that the in quarter? that company question the costs terms [Indiscernible]? of now like second And this first XXXX and inflation fuel fertilizer farming you on expect do do sugar and ethanol of labor we current focused and for and So XXXX are items mostly at the terms expect the balance the the season.

Mariano Bosch

answer Hi, first Guilherme, the ask regarding good and your and take morning. land I'm Thank Renato farming to going to of And question to part sugar you question. the going your I'm for ethanol. one then transformation. in

Renato Junqueira Santos Pereira

High, you that last prices think our is to for of not by sugar remain for Guilherme. year. Thank the question. produced and to We very We increase TRS total ethanol. compared positive both Brazil going

for So that both ethanol products. of gives the of lot be going lot same sugar the for a there's we and sugarcane, competition support between in which to think TRS a

of will possibility So the an think which of it's tax will reasons prioritizing multiply and quarter XX% maximizing produce advantage product, which ethanol, start we because the to season. the that in flexible give And a are clear we we rebates, yeast is to of gives ethanol, [Indiscernible] to have happened to In already hedging meets prioritize. [Indiscernible] think one of little just more it's we that rebates. decide not we profitable. the our terms Brazil, you different that's keep us first this the us in bit news, the that the to X% tax keep I interest the which ethanol. case, It's in produce just

Mariano Bosch

the specifically are and to cost of these the then second producing of that I question your farming Thank like are regarding reformation, areas -- we worldwide And mention in of where efficient. the going you, more cost land Renato. total the part into would

small the model, are it. sustainable our are amounts we very what of strategy essence since we inputs of of And within that's our producing. with So using production regarding started we part

systems [Indiscernible] to So than of prices amount small years see our XXX% in particular XXX% more the on we we and the herbicides, two is you campaign. XX% fertilizers, a that our in herbicides And really inputs last are 'XX that's 'XX or campaign, in that on the producing increasing now why overall XX% using that some there of 'XX that case can an because is fertilizers of like or and is and even around increase. is increase estimating are including think sale of there, campaigns have to 'XX from preparing another when we the campaign we

the the those would XX% products, to going or prices costs. of that of commodities, or I say overall costs. more producing increasing one increase where have 'XX. on that answer out that specifically The are look are question, with XX% these yet the exception on So the the product. higher or rice, the we percent it's When pointed in different we prices way different each the depends products we Fifteen at But And is your only not than the increasing around presentation occurred. 'XX. our in

very but commodities. We because that will some commodities, the these of the other confident are increase price follows to increasing is continue follow rest and the already time it it to takes

Guilherme Palhares

Very clear thinking.

Mariano Bosch

Thank Guilherme. Okay. you,

Operator

Our comes Thiago Pactual. your ahead BTG Please next Duarte, question. from go with Banco from question

Thiago Duarte

Thank energy have everyone. on Charlie, Yes, question one sugar, business. you. Renato, morning to think Good Mariano, I ethanol Renato the I

guys harvested because maintain Just yields. area. how year, much lower just terms crushing larger trying cane in year the higher, spite trying last up managed on of a but year, you same yields area build had you the build -- versus last a that you crushing of to the expect to volume in take harvested place of and Because this to up amount much should

you you So year. the this versus cane reach can see same that the how yields just playing million Thank roughly XX this so tons area you. year, of out wondering

Mariano Bosch

for Renato your you address. thank you want morning, question. to Good Thiago and

Renato Junqueira Santos Pereira

Yes.

Mariano Bosch

The answer.

Renato Junqueira Santos Pereira

thank going last up during and between think going X% lots question. our Is We year. use is your year and that change be for does than year. higher the X Thiago the you to Hi, to

harvest in the very low quarter more in XX was replanted. that As we impact second think lot we improve than year. because any mentioned sugarcane were the we from of last And the yields be have are not areas to and going a that here, carts. the areas is residual because the quarter, semester XX% has to going first of to the first prioritized XX frost

think bases, help just in March complement. the we're up We very going a to April, the yields and that we to will for next year. we the -- for the And in And going sugarcane a second also, for, of planted to sorry, the the for compliment which next second rains So end semester. a lot had have semester. speed be harvest good that's

So, between be of and a it's in the semester. to going lot second difference the the first [Indiscernible]

we to to a the that have Now have the sugarcane on. whole think later we're going challenge we crush campaign started because

But achieve going think Q, take year, harvest than So the key because last is year. in third that point we're of total achieve, going mill. crushing fourth supply going we to likely help in we're especially We feel be semester. that higher part very to crushing we're to last crushing more the second than in is that to going to the likely comfortable and a sugarcane we the operation to the higher use a planting a

Thiago Duarte

I diluting At follow to on going year? positive be understand inflation that, terms see your industry. cost this that a better head yields playing is question costs. these to your And do this there how if Because same of on I time, out you the costs may up the in whole across very is

year bit this you unitary be hectare your out or will or a little nice on per ton as comment per could playing see So well. cost how if you costs

Renato Junqueira Santos Pereira

Yes.

big that have in increase course, increase around to of I in in costs dilute talking harvest. is considering effect think increase approximately the which we not costs we going And those basically exchange that year. of XX%, inflation yields Actually, [Indiscernible] to considering. of the cost I'm to that happen rates. anyone's is this that in the costs XX% in helping We the is are for the think improve we the Brazil. had the

Actually, of lot is think we our a we with very I bio-fertilizer. good of position our are own XX% a needs producing in products. fertilizer, fertilizer because produced are

today. problem are I's self-sufficient We basically [Indiscernible]. a big in Brazil in

comfortable aligned are going going approximately XX% with to inflation. cost increasing a XX% have the are cost be or is We that only you to

Thiago Duarte

Thank That's you Mariano. very helpful. Renato and

Operator

Our comes Lucas JP Morgan. next Ferreira ahead go from Please question. your with question from

Lucas Ferreira

much. very you Thank

so for question as you if up can bit. maybe in terms India coming -op be sugar. a First speeding you Renato still little well, should there, the especially should ahead. pre crop What's hedging think about to your of you very talk a you're with hedges, outlook large

So of guys speeding CAPEX expectation overall are bit you. year. both bit keep the both can the What's second CAPEX -- should levels comfortable at be full-year little can. if expansion and guys much a for commercial for for you more the terms still discuss Charlie, these can hedges question the -- to this Thank a ethanol to if spend, the you you to strategy, up you hedging. discuss in for expect maintenance And probably sugar for sugar and this both and little and you or you ethanol how and crops,

Mariano Bosch

do Renato, the question? first Okay. Thank to Luca. you you, part of the answer want

Renato Junqueira Santos Pereira

Lucas. Yes. Thanks question, for

are we TRS have to good same the As very going between think sugar and competition the I I for ethanol sugarcane. before, a said of

both positive flexibility product possible. will be as our a want flexible to So We that in better maintain we as positive are to scenario. very use

XX% I produced we can Q, showed of help. how We our ethanol. think being first flexibility the

on of you in Regarding these XX is tons India sugar. million tons a Brazil to of exporting that expecting going mentioned this And million XX has X market already to big produced million the India balance. sugar we to even competition think sugar. is in to risk scenario, mentioned, I between order Brazil that I everyone produce be that there less tons is And sugar ethanol, and than of think

is flexible positive. have that be analysis ethanol to And to is in which products, think is we we maximize positive, an because export want more since there's profitable. we are this addition, analysis able very to to Europe. So floor And we in very the price ethanol,

can Bonsucro gives also, which the cents is produce floor export the the and Brazil It ethanol which of produce one our markets. of And European and that a to anhydrous certification Europe, efficient degree, two production. mills ethanol. very per to equipment It molecular, any in few can are closer on peneira is have very have anhydrous required we the to ethanol high closer that pound. [Indiscernible] -- we We by possibly a price XX% because

Mariano Bosch

the policy. distribution regarding complying Thank CapEx priority our start saying you, Renato. And today Lucas our I CapEx, for is and maintaining would that expectation with

of the are you so we least net going and million buybacks. that from rest $XX $XXX we XX% As million have know, to in these cash at in is dividends distribute the that operation,

of we So that in that that priority with in with the new on these have our sugar happening or our we and continue that and within continue the mainly growth projects is are depending area hectares are thriving organic CapEx are growth mind what ability and is that to growth planting, and course, lease and will ongoing we the planting plant. that ethanol is is the that

lower expansion And synergies part IRR then some investment in whether CapEx. growth, will drive above returns the thus, different on as an all of them operation that and example. that generates the and of can good small expect XX% higher, So maintenance top CapEx expansion we very of

cost. On also the on CapEx, that FX and it maintenance the the depends

by general, and will in with FX. affected the will CapEx depend [Indiscernible] but we finalize in So, continue on the how inflation maintenance line XX% the

CapEx. that's answer regarding So the

Lucas Ferreira

at a CapEx's you invest least quick follow-up. range of how million expansion But much in year you this have Thanks, Do dollars? total Charlie. -- just have a

Carlos A. Boero Hughes

last should in last year similar year. to expect We we -- line have what with

Lucas Ferreira

Perfect. Thank you.

Operator

Instructions]. you Once like would to again, ask a [Operator if question,

Santander. question comes Audi next from Our question. your go from with Please ahead Christian

Christian Audi

a go second so back to to I Thank wanted everybody. for allocation the Hello, topic. much. capital you

So And already secondly, what touched on is and And I And the all with the you remind think forward? be going given considered that's comfortable happening I side, EBITDA, can us, then would for buybacks. then questions that other M&A you you on the level answered. to expansion you're feel of market, dividends also year. maintenance. wanted were debt clearly CapEx very your this that seeing What you this net ask mentioned priority related that anything to CapEx is front, could and about growth on

these related you very Thanks. yes, prioritize among how be capital dividends, M&A. stats, just CapEx, it please. So elements would allocation your That different helpful, was to

Mariano Bosch

been Number be Okay. that two we Thank feel be will the below two And talking we've levels your debt. much times net one, very comfortable. talking Christian, always if we question. which EBITDA times -- you, below to about debt for about always

think, that's to these are we and to So numbers. that very we something continue committed

lines expecting today existing as number mentioned EBITDA these to So four small wouldn't projects two are businesses. our with that just businesses. expect mentioned, higher just always continue we outside what below what focus making you Taking we our times to number. currently is where shouldn't that M&A account, these synergy into I of I around all I are on any different the expect with and than see

value to attractive So I been to enough would our anything be why that entered we always expect course, we very shareholders. things of look them. clear into haven't businesses, at. we there existing looking we wouldn't create those our haven't Whether anything any that within at we've seen But That's there. of M&A

Christian Audi

can areas you it -- front, looking potential a you be as new the bit future, in about ethanol, into be sugar CapEx talk any ethanol the front, on and little particularly may of in second-generation products growth bio-gas, new And Understood. etc? the

Mariano Bosch

Christian. you, Thank Sorry.

I on think working is our models. are talking sustainable about, as we production been we've where

amount In that are the production of sustainable fertilizer to [Indiscernible] this bio-fertilizer. we front, more seeing increasing still are model, also of so to we we're that the within value And are into, the things energy transforming the increasing that we be using more into get is So sustainable. one as it generator. projects involved methane And in, we be electricity. also as size creating generator could diesel of replacing [Indiscernible] taking and an that that from and of we energy are more the of are amount

are generate to where we sustainability is order we coming there increasing the that So front and more revenues our from system continue current in to working have.

Christian Audi

a from Great. Corn-ethanol, something it's interesting view. that is front you strategic And of the follow-up. that think last

Mariano Bosch

taking of out land But the for particularly of the question, is efficient at makes out we are because you than model. corn. of sustainable the and of We think Thank Because the corn-ethanol that day, concept sugarcane ethanol the more we region think the our where times. are, the analyzing many then for We've that sense. been the we much production Christian. us, end

think than So this much specific are. that we taking in where are with account, more efficient corn we sugarcane we with into that the the areas

Christian Audi

the the -- very and so And Great. last one.

your So, sugar you you prices, high your ethanol and calls you words, how of in bit talked about your think Can well, with seeking other to dividends. extraordinary XX% dividends about may about little that, please? the continue cash do so so a us generating to pay that ability tell willingness net XX% formula cash, you for, addition the in that to paying much to given

Mariano Bosch

to of at previous through XX% been in cash Last year. -- we XXXX, XX% we've net flow buyback distributed of of our year dividends distribute are pay operations -- committed operation. from our least we cash to No, and net

or more on that expect it more EBITDA, And the we forward, below done times can't past. debt, can we not? the So do etc. distribute but CapEx depend to it expect will being two these to because distribute Yeah, going always can net opportunities in we've not we

the we've all that about. So talking criteria been

Christian Audi

Very Perfect. Thank much. you so clear.

Operator

remarks. And this over floor At gentlemen, turn Instructions] like to any conclude back I'd for the Mr. time, this will and Bosch session. ladies to closing question-and-answer today's [Operator

Mariano Bosch

Thank you see event. you in the participating everyone And our call. in upcoming for

Operator

This concludes Thank you. today's presentation.

You your may now disconnect lines.

Adecoagro (AGRO) 13 May 222022 Q1 Earnings call transcript