April 6, 2011

Adecoagro posts adjusted EBITDA of US$95.1 million

Adecoagro, one of the leading agricultural companies in South America, recorded adjusted EBITDA of US$54.1 million in 4Q10, driving adjusted EBITDA for the 2010 fiscal year to US$95.1 million, representing a US$92.6 million increase compared to 2009.

Gross Sales in 2010 reached US$426.3 million, 35.9% higher than 2009. Sugar, Ethanol and Energy business adjusted EBITDA increased US$78.6 million, from US$26.9 million in 2009 to US$51.7 million in 2010. Farming and Land Transformation businesses adjusted EBITDA grew 27.2% in 2010 compared to 2009, from US$51.7 million in 2009 to US$65.7 million in 2010.

Net loss in 2010 totalled US$44.8 million, mainly impacted by the recognition of a non-cash loss (unrealised changes in fair value of long term biological assets) of US$96.8 million.  The loss was generated by a decrease in the fair value of its sugarcane plantation primarily as a result of lower sugar price estimates used in our sugarcane valuation model.

Adecoagro began the 2010/11 harvest year and as of December 31, 2010, successfully planted 156,300 hectares. Total planted area is forecasted to reach approximately 190,000 hectares, 3.6% above the previous harvest year. Rice planted area has increased by 50.8%, reaching a total of 27,400 hectares in the 2010/11 harvest year.

The company continues executing its strategy of transforming and adding value to its farms.

Adecoagro continues implementing its growth strategy in the Sugar, Ethanol and Energy business.  On November 26, 2010, the Ivinhema greenfield mill was granted the preliminary license by IMASUL ("Instituto de Meio Ambiente de Mato Grosso do Sul"), an important milestone to begin construction of the mill by mid 2011.

During 2010, the company continued strengthening its environmental and social commitment, supporting rural areas surrounding its operations, with a focus on education and nutrition.