Earnings call transcript Q2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to Adecoagro's Second Quarter 2023 Results Conference Call.

Today with us, we have Mr. Mariano Bosch, CEO; Mr. Emilio Gnecco, CFO; Mr. Ethanol VP; Sugar, Ms. Pereira, Junqueira and and Energy Renato Officer. Vitoria Relations Cabello, Investor inform We recorded. would you this like to that event is being Instructions] [Operator

proceeding, assumptions of depend that the mention conditions the that not of and company. may future. in information other let general also economic therefore, are could occur risks, to relate Before industry on cause uncertainties to involve Adecoagro results based events and currently forward-looking available that beliefs results they understand management on or may to from Investors affect conditions, Adecoagro's forward-looking such statements assumptions differ the in circumstances They statements. and and could future because on factors operating and materially should the me expressed those and future

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

Mariano Bosch

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

in good of extreme we may report, are have you operations. very our that seen drought presenting As the the impacted despite results some

adjusted clearly our to times achieving we and in was on when year. chain. the value this, like It is can in focused Our higher and of last being XX% efficiencies benefits diversified monetize whole show compared EBITDA

XX% business about to Sugar, how by We sugarcane are very XXXX. excited The Ethanol is and development is good, compared our increase and volumes to crushing Energy really performing. plantation our of we expect

to using have sugar shift We are and it maximize to a large flexibility production. we production,

solid of tanks sold and expected still all hedged positioned is the are to production to to have well of We our sugar prices. following our in in our of and about XX% XX% year's quarters. next be ethanol year's capture almost annual stored this very production continue

The increase focus of great ethanol plantation forward growth. the on be already the following why are is carry increase to expected a because our our good shape, to efficiencies. Otto is to gasoline Cycle in in one, reason and sugarcane as prices prices decision proving achieving This is

mentioned activities. before, the years, throughout we our a past farming have I put on As special focus

are levels As TRS result, incredible content we of a reaching per hectare.

Pre implemented meristem Muda used we which only seedling example, by through For multiplication or us. Brotada is of the technology pre-sprouted

us enables the adapted our are built varieties. a a We much to and at region varieties cane pace better reproduce that faster to [indiscernible] older produces million now factory This year. every really replace even XX that

of harvester, which consumption two-line using per compaction, only soil are diesel also We yields ton, reduces sugarcane. not leading to but better

with heritage plates. our monitor use reduce We the in use areas good intelligence many levels, productivity biological other footprint. not examples. innovations artificial These only to and carbon pesticides infestation drones and plantation and ton also We improve for our control but among apply to our per our only cost are

more consumption. good using are power diesel our biomethane, Another production we to which XXX this replacing already vehicles example of of is than

We sugarcane and region are needs, are we happy we our ahead. with potential very where still plantation the the we located did have that with that the and our work

experienced an our mentioned business, we drought. the move Argentina unprecedented our let's Farming Uruguay. in Now Crops past business as and we in In releases, into

Our reflection segment this. this results in of are a

'XX, the from 'XX earning our drought. are are impact long-term focused campaign, the no Now in we we with fresh potential on starting where

per per finished our challenges for marginally the activities, year, free-stalls. with navigated El daily as already populating good came In have We four we started operating and have the almost XX Nino last This favorable day our record business, of full liters planting expectations forecast. the new we we down cow Productivity capacity. is average. on levels, crops reaching per at cow productivity at year,

the mixed a to prices, performance, of flexibility but adapt have terms we to the In is there context.

to strategically well. mills in business, own of rice Uruguay set managed last operations operate seed in foot paying our we located after produce integrated year varieties a year, we In already made needs. to one genetics In Argentina, four the and and decision sustainable case our the by is dry largest our the rice even of rice world where the off. fully customized the We production own model to develop do we clients' very under a acquiring

rice with are coming offering leader production over We Argentina. this Uruguay building consolidating relationships of trusting traceability the clients world market, from and all as and a full high-quality and

a in huge front opportunity we us. have of Now

world, need rice that producing for positioned There means they is exports. lack we from a in benefit of their Having very will American rice. Argentina water a clear Uruguay, South the cutting this. and operations are and countries many uniquely This to in of there rice be are

Another thing in the is ESG are the about we doing are work we front. very enthusiastic

the them. We for monetizing willing our profile on pay most have and But of a carbon emphasizing Brazil working and production we to have been sale clients The of our processes for is credits and example. products premium certifications them. also sustainability obvious model in several the

of work interior Sustainability Every to day, this. to we the it. we In invite all are I integrated how the where production our you in report, ESG with sustainable read do we is who show models of part develop details operate. we interested our countries DNA. of great

Xx We shares, we with We are outlook debt very always EBITDA. have we repurchasing maintaining and continue a below distributed our dividends our policy. positive recently compliant Also, ahead. distribution

our efficiency, year value To with want have a outlook I we off This positive work returns will of ahead to shareholders. thank continue us. commitment challenges, very hard confident our generate your to teams. many we feel started that to with now and and I to but conclude, good

Emilio let numbers Now you quarter. I the of through the will walk

Emilio Gnecco

Mariano. morning, everyone. you, Good Thank

the totaled an XX% by summary in it stood our financial mostly average X% rice previous higher and its than quarter, periods. prices higher during sales during commercial division. favor million. selling coupled was a decision to our expanded reached on to $XXX million year-to-date, $XXX execute EBITDA sugar quarter, prices, start second on year. and $XXX with the it Consequently, of making consolidated XX% whereas solid our adjusted previous a at the results. production with This million, $XXX than million increase XX% X explained respective basis, at higher Gross year-over-year while Page Let's sales accumulated

turn Slide financial of Please for figures. X our broader consolidated to our view

can Sugar, and see bottom and availability chart, productivity the you a our Energy were indicators. on on in Ethanol greater XX% up on business of sugarcane As volumes right crushing basis account year-to-date solid

effects reduction, hand, in unprecedented explained XX% other division and the mostly Argentina, an to On drought which of a volume farming impacted total in crops reported production our by the due area year-over-year produced.

move Let's X. to ahead Slide

quarter, during our productivity year. This business. while the With productivity increased Energy XXX a Ethanol by the Sugar, X.X the amounted increase volume Thus, XXX year. year-over-year versus making mostly X% indicators indicators the first such TRS enhanced the ton. driven and improvement second Crushing presented XX from by performance was XX to to in prior of a precipitations million during of yields to operational six tons kilograms good as content registered hectare the quarter, tons from agricultural solid months per per

this of in million highest tons, mix, the that reached cubic hydrous and the basis, production meters anhydrous tanks. higher of Within in premium the production, TRS stored XX% XX% dehydrated crushing On was we terms from XX% year-over-year. of our of to profit X.X commanded, year-to-date over as with our ethanol ethanol to further product as much diverted we line a XX,XXX marginal strategy volume contribution. In production our our ethanol with maximize to sugar

XXXX. significant is of harvest sugarcane as the to This quarter yields well and first during explained by resume us to continuous TRS greater which in improvement model a the enabled content, availability, our

of bottom production right mentioned reached The from the As was XX% sugar observed degree in before, year quarter mix ethanol production our while sugar, of levels in chart, maximize sugar we opposite last the line rally as global first throughout to the shown high mills. the stood with This the in in proves semester Brazil. prices record at as prices. profit flexibility

where by increase like million Please higher a this million to describe X% compared Slide offset the year-over-year higher and and production the semester, year. Net first both in $XXX we cases, reduction turn fully prices sales. our would throughout the on to $XXX sales and sales sales the quarter In sugar X, the amounted making during ethanol respectively. XX% year, in which to was previous driven to

can volumes sugar of amounted XXX,XXX top you the year-to-date. selling see tons left on chart, to As

As production decision to sugar favored ethanol. over our capture mix the price premium

during by increase our commercial semester, we Consequently, first sugar our and of X% increased case ethanol stocks. the coupled our sold the from an was production, excellent prices prices. decrease in to ethanol, selling with reduction in decision average benefited In the carryover volumes driven

second does offered year-over-year and of see very that The attractive fair of market prices. ethanol at sold we quarter not during ethanol opportunity advantage comparison the a took XXXX,

high as in advantage shortage per caused late last of equivalent, releases, As by our volumes most of ethanol of at supply Brazil. as we year, of explained sold prices activities harvesting prior start taking pound a in the in $X.XX

we highlighting worth the and peak that benefited price in demand capturing a is the of sold of quarter. XX% there, ethanol our It above volume XX% year, this from average also

product during anhydrous an pound. were meters capacity quarter per an certifications price $X.XXX industry is ethanol exported XX,XXX year-to-date, price meet necessary This second have and were of specifications. equivalent cubic conducted average since the average XX,XXX sold of meters cubic which the out at cubic XXX,XXX pound so per Within the at we $X.XXX meters to of of

average compared prior selling selling year, On decreased by to to though energy XX% an volumes accumulated price lower XX% spot energy even its due increased basis, prices. the

year-to-date, lower Regarding per the price at than of previous CBio. CBios, carbon year XX% sold XXX,XXX $XX credits, average we over an

and during Sugar, of lower to we credits carbon the This first and $XXX of go to Ethanol year, a lower is sale amounted present the X, led respectively. the amount explained Page the which of the like year-over-year million EBITDA the business. second financial half Energy issued. quarter would production $XXX of and Adjusted by million performance and to Please ethanol, where to

our both in by as well volume. In the as harvested higher was cases, sales increase in gains of driven on net adjusted crushing mark-to-market higher EBITDA gain the

the hedge our position. year-over-year However, loss results offset commodity by were partially mark-to-market of reported in a

XX, current to turn and the would for outlook Finally, Sugar, the year. about like conclude with where the to rest talk Ethanol to the briefly business, we of Energy please Slide

expect weather XXXX normal, we going our XXXX. than Assuming in XX% higher volume in be to crushing approximately

to sugarcane capacity. we industrial sufficient use our As have availability

point to dilution From and fundamentals This, pound. are of commercial in in of on per will fixed due supported of view, better about prices reduction costs. our strong sugar be average by result turn, trading continue $X.XX to unitary a costs

we the in are our quarters only XXXX We energy this transition profit the position have And into unhedged. higher that of from of continue of prices. profit following we ethanol, to an taking as our contribution. expected play position Adecoagro and carry important In XX% production the XXXX, sugar will from our believe to of globally, open. expected remains for ethanol advantage are XX% but over believe role not case excellent to Brazil, production matrix, we capacity scenario will in storage its to in an We make sugar

Now like the move we would to go Farming business. to Please to XX. Slide on

and As area of agriculture tons harvested expected XX% of beginning hectares produce we of be August The month. total during over of remaining rest are XXX,XXX the the to fully the XXXX, produce. this harvested of

presented possibility partially experienced of our significant As Argentina some as products, been campaign compared to to to Uruguay the farm that there at crops a summer and of level. weather performance anticipated, weak yields of have event. consequence price the developments for our due the the La previous most Nina help record us impacting mitigate of drought decline which of Nevertheless, a

the recently to in passed to in flexibility the of India, to market corn, the The case largest expect to announced sell partially resolution the and full yields. soybean, thanks government proceeds to sales a preferential sunflower, for of FX profit rice convert rice of supply. decrease that world's peanut rice, white which rate ban from Thus, long-grain export rice, into use the secure domestic and of quarter Also, offset offer this, the allowed the Argentina we exports a traceability. product our from

for our activities campaign wheat starting and with planting crops. began winter we conclude, other next To

especially outlook season, for allow shifting the the an 'XX, of El We which expect should weather harvest water in to levels moisture and forecast recovery season. upcoming is favoring in Nino pattern, 'XX since soil positive outlook a the for for improvement the the moderate reservoirs

EBITDA million Farming of was On quarter, Transformation the year-over-year lower and increase. financial XX, XX% the adjusted we following XX% to like $XX Land present totaled making EBITDA Adjusted our previous Page performance the the a million, businesses. year. than in would $XX Year-to-date,

caused expected during our first by crops year, cases, business, La record as by outperformance Starting amounted offset both was due adjusted In respectively. $XXX,XXX divisions the this of performance to quarter which the that dairy explained second EBITDA an the and affected poor rice $XXX,XXX the of our Nina to drought semester of yields. fully and crop with whether and

mainly in dollar As in season. terms reduction by a million previously rice million costs Adjusted during as $XX the U.S. in the business EBITDA with $XX in impacted the results on second previous basis. our reduction increase in versus a were explained, yields accumulated genuine and planted coupled an quarter was area

other volume Despite of added compared yields well the costs of campaign value terms, factors. an was a to due in selling rate previous average better exchange higher U.S. products higher driven the and preferential a prices increase and year-over-year. EBITDA mentioned the among dollar was reduction adjusted higher in both This in use to as by mix above, as

as highest vertically which the than EBITDA stood this our coupled were explained contribution year-over-year while produce business, operations. dairy fluid during we continuous by integrated average the making prior efficiencies higher domestic higher $XX to the Results on at prices year, a million, XX% totaled with achieving period, XX% offered $XX selling it million, for milk more year-to-date, in focus increase. Moving our marginal on adjusted market,

of an including were sales mark-to-market evolution of In account farm farms concluded, to cups. by of of the corresponding case feed dairy the reflect prices. in of no results receivable our soybean cost tracks higher partially which transformation, Results the costs, were sale although Brazil, latest of the offset land

would generated XX, via year million strategy. capital minimum According are cash present and generated combination distribution of we like to cash our cash Page to $XXX our share allocation net we turn previous of now committed a XXXX, operations. we In policy, distribution XX% of repurchases. from to Let's where dividends a to during the the of

first representing XX, share $XX.X of dividends, cash on our terms In approximately installment cash which million paid $X.XX corresponds dividend. dividends, per we in the of annual May to

in in The cash of second be shall $XX payable an resulting equal about in million. dividend November noncash amount, or a

In represents repurchased equity. company's we of shares which already have the addition, million $XX year-to-date, in X.X% approximately

Moving position. on to the debt

related agricultural net Our financing requirements, the last to prices compared period explained our at order This debt capital to take $XXX low attractive same mainly of increased to working advantage of by year, in of million. advanced was of X% inputs to capital. the of amounting cost purchases

consequently debt such impacting appreciated denominated versus the Real X% Brazilian prior the Furthermore, year, in our currency.

our full debt was with with showing XX, company's short-term capacity the balances, previous June cash to As XXXX, X.Xx, of our repay liquidity ratio leverage whereas its reached the net line ratio X.Xx, year. in

CapEx biomethane production, destined of projects on increase invested increasing biogas To our is our related mostly continue to in construction total XX% expansion as consumption. sugarcane Investments biodigester as well diesel was replace other conclude, to throughout plantation to is such the projects. used the converted our were to our complementary as which Brazil front later of into second quarter this and

dairy renewable using our cow business, is that as biodigester to input of our generate in an In energy, finalizing construction will with aligned second project which manure our the sustainability Farming committee. we are division, our be

for Thank much you your very time.

We questions. to are open now

Operator

Pactual. [Operator Thiago is question Instructions] The Duarte first BTG from from

Your microphone open. is

Thiago Duarte

Emilio and final Mariano, and for I on Hello Hi. to one on I And Renato points may, wanted rest to ethanol opportunity. the Mariano allocation. team. and address two the of Emilio, question, sugar then Yes, with I have the Renato if business. Thanks capital

bit Brazil first. depressed have about or prices for to the talk of away even possibilities further the Renato, ethanol So sort can move to right enhancing a increasing you Renato now. you flexibility in little that from

if have even place the in of there asking producing sugar the right maximization guys increasing more possibility you is you than are basically I'm that now? any So capacity or planning for

you the little ethanol even also, more a more talk than exporting for bit could And if have opportunities doing. about you been

ethanol see captured the pretty are ethanol representative So the considering export guys still that I but there. volumes not interesting you on prices total that volumes the business,

love of decarbonization know I the cost of It's interesting would hear sugar impact, -- -- How biomethane also little the -- to increasing a to economics? a as economic So are unit as increasing a increasing ethanol don't there ethanol the you if can even there that. diesel. room of diesel? to bit room and you replacement get biogas terms talk or if of the you of and Can guys bit to you on more that is and impact of about biomethane cost what talk the whether a producing And I for, doing I is biomethane. could volumes compares export I very there little of elaborate on in so you the second can sense. think but economics you further? said, price get using mix

flow finally, generation. talk ethanol, you're a good Because a it The you out allocation have paying margin of , in more guys dividends if prospect presentation But or Emilio, and of might I to a now, -- projects in heading ongoing. to could you prices. seems be little rice you year and to expansion are feels place. and going in lot cash And in all, have good a a you either think, think you We expansion capital CapEx, Mariano the nice there terms of about sugar mentioned new right? in bit to after that projects be like repurchasing to shares few paying terms

bit talk Thank than deleveraging you company could a we more elaborate that. before? apparently, thought on the we expect should even that So is faster little What -- if now you.

Mariano Bosch

for Thiago, thank very question. much you your

three mentioned, as think the and allocation. the and will we ethanol, Renato main address points then will on Renato? your sugar you capital I take

Renato Junqueira Pereira

question. your for you thank Thiago,

monthly producing we have produced we to capacity. existing sugar month, our is Actually, important XXX,XXX higher production it's in In this record. of year, sugar last highlight than of have that a a first, think have the I tons record. the lot sugar in July, production, XX% which been sugar reflecting reached Regarding we

more factory than installed capacities. able been We have our to sugar produce

in installed and we July capacities. August, Actually XX% than our are more producing

So the August also per third that quarter we And it's are a mention is kilograms rich, sugar important producing lot higher to ton. XXX TRS I think in this year. is than the sugarcane in very of lateral

doing what are sugar. So that's regarding we

the sugar for we bottlenecks the of capacity think that the we our having the we're expand in that Regarding some year, can out operation. remove bottlenecks especially still process, next

into can than produce investing we we now. next I sugarcane the we -- When that is then, So is of year. And would XX,XXX it say, removing for approximately bottlenecks. more sugar content lower sugar had would by believe the -- bottlenecks tons

ethanol, we doing, are starting what Regarding we our are production.

the the we million XX% and position. liters a think Cycle we of Today, in in ethanol And than tanks. XXX faster our the the that increase in close announced that have is than was of puts week Cycle ethanol competitiveness attracting the predicting, growth gasoline pace the Otto of to growing good growth also very the a more in in -- the is price of Otto last Petrobras everybody

rate -- think close part is today XX the XX%. I to

we at for room of to ethanol be of end. ethanol price -- ethanol we season get when close a start lot then higher the the for price. the think the is to So selling And a there will Brazilian especially increase,

project. sorry, [two of diesel. I is about biomethane, I'm very cost X production methane, of we methane -- AI] our the close is to the to Today, -- Regarding liter close we think optimistic are

depreciation. it's So including

liter. BRL So was per X.X today it X.X -- replaces BRL diesel that

we have can potential much a to produce in fleet. course, we our more biomethane Of than use

the So option are to best some and have sell at buyers, then grow. some we to analyzing point, biomethane to you

Mariano Bosch

first that allocation, is have Thiago, I year. we you, be challenging capital to started want the very to regarding we Thank a clarity need that make Renato. the to -- point

on are have understand situation results we our we future that speak. as to we very but that Now optimistic are changing we

that So we understand distribution it is is our policy. That most important important thing. to maintain the

to net want we also, Xx EBITDA And -- debt-to-EBITDA. be below

that we very as have that them in important in sugar dairy. see don't the projects specific will projects of and assuming But some very and project specific we that So and synergetic some in the of change large our any there the policy is things, seen, are and both most business ethanol rice the thing you've them ahead.

Thiago Duarte

right. Thank All That's very you. clear.

Operator

of from is Palhares from Bank question Next America. Guilherme

open. Your microphone is

Guilherme Palhares

explore my of maybe everyone. away might taking right? better bit side, look morning, on a Thanks into primary question. going would farming Good moving a We from for like bit terms I in that the and a season conditions. finally El are to Nino

right? So whether a Because yields we years in normalizing question whether three could already droughts or we had of the coming for harvest a conceptually and in Nino would year, you have long that have yields that is productivity around consecutive a like bit for regarding impact of the depletion through the have El to see that the the be sense next standing would soil season season. next of of an three terms we

that's farming. in terms question of So

operational And already of see beating reaching stabilizing its another just continue you is you terms dairy, company one, we whether in goal grow terms we terms that of the Thank of grow are and herd dairy, are managing, are whether a in sheer you. that see you're that you level? herd size seeing to herd estimates or continues the the of in on initial operation the that to new

Mariano Bosch

El the forecast that next expected no past for Nino very question. for you drought. the Guilherme, it's on effect Number regarding clear season yields thank and the there one, your is crops, in

So we season. scratch from are new the starting

we crops expect the using only expect yields five general. years That but Furthermore So are in with budget, last normal a forward. we years we above is the regarding normal five for normal should yields, the -- going can as yields average. Nino, El

but levels, are specific same is your even to in dairy cow beyond and question on cows, herd. the going the the Then within this dairy, we productivity achieving

not to herd for our now. are increase cow planning We

increase of sales by through the in basis. that the of productivity will electricity account its biomethane generated a that biodigestor. simply production cow increasing are also be This sales the We year, to taken end has this by also to productivity per new will start our into unit so increase produce

that happen will those dairy business. the in increases the So are

sales. business, should this On also in that our cow this, market, we've in factory basis. in productivity, only and also dairy increase total the of will that generate domestic value-added done of improvement some cheese through this Furthermore, investment products it's But the profits the that increase terms also top see there in or we cow we also the additional some on that the daily are per in business. are improving productivity achieving the markets will

Guilherme Palhares

Mariano. Thank clear. you, That's very

Operator

question from is Ferreira Next from JPMorgan. Lucas

is microphone open. Your

Lucas Ferreira

for Hi, have everyone. Good Thanks few my a questions. taking I morning. on Argentina.

The first one on the rice business.

You on mentioned index look. exports, increasing checking some prices see rice XX%, that on was ban already XX%, markets, India depends you you important Asian the

is is second So the, the look now, selling, business, my quarter. question say, on realized price when you're exporting much this marginal in the the the -- the prices let's right prices rice how bigger you at versus

-- just third business. size of So fourth the quarters the rice see a the of sense you have in could we potential or sort upside of in the the

macro. Argentina question about more other is The

devaluation. you if recent given can us, remind the So

local, net Your but but that some currency, to still to exports, buy. you need I mostly the you inputs exposure obviously you mean, sell the also have

effect that the on And rates. would rates, devaluation. the the just So expect wondering you you preferential FX mentioned net

that if this in So scenario. continues

FX what with now this Just your levels in you. Thank business? expect to new wondering

Mariano Bosch

Lucas, your thank question. you for

operation see in Uruguay. we that investment this that into we from and as America, We the rice, optimistic. did have we are We explained last presentation, well getting South prepared Regarding in very this from advantage. large see we year Argentina we very and Uruguay our with are

world supply world's to that market positioned well very these the today. are has We the and needs

this So how could much increase be.

in increasing to prices. We last compared year in relevant terms of are value the

of of more the we Regarding this continue that than top is But are varieties next clients increase of important the business. giving and an an specific rice there the developing India, in that also that and over we the long all particular last ban us in we is world. there, rice advantage commodity year, feel commercial And situation. benefit specific to that to more more increase is Asian for is because grain the the specific because on the from comfortable prices it

rice. So that is regarding

Argentina and this regarding devaluation. then of And the market recent

to remind market. export or to to XX% on Argentina, domestic you, XX% Just and the XX% from between we XX% XX%

in for less happens depends how devaluation devaluation positive the or positive. general more So when is on margins. this is our and It

take well advantage this We to are positioned of measure. specific

Furthermore, inputs for there, this of chemicals that we that dollar-denominated already mentioned acquired some in cost we anticipated advantage production. that within also and and are and how optimistic some took the this campaign we I we acquisitions our now sheet fertilizers of and planting are were balance total

this So results. terms future is positive of us for I in would say our very

Lucas Ferreira

Excellent. Thank very you much.

Operator

BBA. Daniel is Next from question Sasson Instructions] [Operator Itau from

Your microphone is open.

Mariano Bosch

you I not is there? Daniel are Daniel working. Itau mic is from saying not his think is there. Daniel

ask may question your You question. the your type prompt. Can you in

Vitoria Cabello

prices would we before have capacity? to ethanol. Also if see over For biomethane, division, I capacity see innovative your Sasson exchange into your high do you think long submarket whole is for you're months, regarding to you asking, sugar the of question on also to Daniel question to color So have you term to sugar do your the mills have other medium long this prices you do in that in another Itau. given last for And from a once He some sell couple royalties? the increase on again? any projects. plans technology Could the how please potential industry looking in increasing remain as us hike a the give

Mariano Bosch

he be already will and has but Renato? precise Okay. mentioned he Renato this, the expansion the regarding something, I can sugar division the more on that question to ask answer

Renato Junqueira Pereira

thank question. Daniel, for your you

sugar sugar. we if this, than potential some quarter, plans be we the have lower the By example, able of process. so to we As anything and mentioned operation increase have bottlenecks by we is in the for I doing [indiscernible] have to year mix to before, increase TRS for produce some in our more that sugar next of third content the will removing production

Mariano Bosch

Renato. you, Thank

We microphone. your are hearing some noise on

but So today, is that. our I'm exchange on the royalties be we the parties biomethane sold if going project. execution focusing are and to take the on third that question own of That possibility, clearly of to on for technology, a could the

harvest on have that specifics system this includes our model. continuous We some production

So concentrating -- because vinasse. and use a as we that that reasons the vinasse we fertilizer of these are as and a all biofertilizer the

So there developing project are system. on very some specifics these our own biodigesters to on as that own profitable production our makes

So term technology. to and on with the the after details money develop in we Brazil own on the financing alternatives that analyze we focus specific more and going getting from and have going the some to that, in short different Finep that are are we project of of our this all possibility

Then you technologies oils asked and is comes aviation aviation interesting. also This from the new The sustainable from ethanol. like sustainable about fuels these fuels. very

both are asked companies about looking some So petroleum There are are possibility. that this technologies have things potential at. we that

simply regarding So this is whether those, at how we understanding looking sector this and specific impact to for there this. us possibility any will are

So share we are we what that can knowing what's you this with going on at moment, analyzing Daniel. and

Operator

At [Operator time, Instructions] Bosch I would the This section. any turn closing question-and-answer this to for floor concludes to like back Mr. the remarks.

Mariano Bosch

see participating much upcoming our all events. you and hope very you in all for to Thank

Adecoagro (AGRO) 18 Aug 232023 Q2 Earnings call transcript