UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of
1934
For the month of May, 2015
Commission
File Number 001-35052
Adecoagro S.A.
(Translation of registrant’s name
into English)
13-15 Avenue de la Liberté
L-1931 Luxembourg
R.C.S. Luxembourg B 153 681
(Address of principal executive office)
Indicate by check mark whether the registrant files or will
file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form
40-F ¨
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Indicate by check mark whether the registrant by furnishing
the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b)
under the Securities Exchange Act of 1934. Yes ¨ No
x
If “Yes” is marked, indicate below the file number
assigned to the registrant in connection with Rule 12g3-2(b): 82- .
UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS
OF AND FOR THE THREE
MONTH PERIOD ENDED MARCH 31, 2015
Adecoagro S.A. (the “Company” or “Adecoagro”)
is filing this report on Form 6-K for the purpose of providing a copy of the Company’s unaudited condensed consolidated financial
statements as of and for the three month period ended March 31, 2015 (the “Consolidated Financial Statements”).
This Form 6-K is incorporated by reference into the Company’s Registration Statement on Form F-3 filed on December 6,
2013 (File No. 333-191325) (the “Registration Statement”). The Consolidated Financial Statements are presented
in U.S. Dollars and prepared in accordance with International Financial Reporting Standards.
The attachment contains forward-looking statements. The registrant
desires to qualify for the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995, and consequently
is hereby filing cautionary statements identifying important factors that could cause the registrant’s actual results to
differ materially from those set forth in the attachment.
The registrant’s forward-looking statements are based
on the registrant’s current expectations, assumptions, estimates and projections about the registrant and its industry. These
forward-looking statements can be identified by words or phrases such as “anticipate,” “believe,” “continue,”
“estimate,” “expect,” “intend,” “is/are likely to,” “may,” “plan,”
“should,” “would,” or other similar expressions.
The forward-looking statements included in the attached relate
to, among others: (i) the registrant’s business prospects and future results of operations; (ii) weather and other
natural phenomena; (iii) developments in, or changes to, the laws, regulations and governmental policies governing the registrant’s
business, including limitations on ownership of farmland by foreign entities in certain jurisdictions in which the registrant operate,
environmental laws and regulations; (iv) the implementation of the registrant’s business strategy, including its development
of the Ivinhema mill and other current projects; (v) the registrant’s plans relating to acquisitions, joint ventures,
strategic alliances or divestitures; (vi) the implementation of the registrant’s financing strategy and capital expenditure
plan; (vii) the maintenance of the registrant’s relationships with customers; (viii) the competitive nature of
the industries in which the registrant operates; (ix) the cost and availability of financing; (x) future demand for the
commodities the registrant produces; (xi) international prices for commodities; (xii) the condition of the registrant’s
land holdings; (xiii) the development of the logistics and infrastructure for transportation of the registrant’s products
in the countries where it operates; (xiv) the performance of the South American and world economies; and (xv) the relative
value of the Brazilian Real, the Argentine Peso, and the Uruguayan Peso compared to other currencies; as well as other risks included
in the registrant’s other filings and submissions with the United States Securities and Exchange Commission.
These forward-looking statements involve various risks and uncertainties.
Although the registrant believes that its expectations expressed in these forward-looking statements are reasonable, its expectations
may turn out to be incorrect. The registrant’s actual results could be materially different from its expectations. In light
of the risks and uncertainties described above, the estimates and forward-looking statements discussed in the attached might not
occur, and the registrant’s future results and its performance may differ materially from those expressed in these forward-looking
statements due to, inclusive, but not limited to, the factors mentioned above. Because of these uncertainties, you should not make
any investment decision based on these estimates and forward-looking statements.
The forward-looking statements made in the attached relate only
to events or information as of the date on which the statements are made in the attached. The registrant undertakes no obligation
to update any forward-looking statements to reflect events or circumstances after the date on which the statements are made or
to reflect the occurrence of unanticipated events.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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Adecoagro S.A. |
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By |
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/s/ Carlos A. Boero Hughes |
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Name: |
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Carlos A. Boero Hughes |
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Title: |
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Chief Financial Officer and Chief Accounting Officer |
Date: May 14, 2015
Adecoagro
S.A.
Condensed
Consolidated Interim Financial Statements as of March 31, 2015 and for the three-month periods ended March 31, 2015 and 2014
Legal
information
Denomination: Adecoagro
S.A.
Legal address: Vertigo
Naos Building, 6, Rue Eugène Ruppert, L-2453, Luxembourg
Company activity: Agricultural
and agro-industrial
Date of registration:
June 11, 2010
Expiration of company
charter: No term defined
Number of register (RCS
Luxembourg): B153.681
Capital stock: 122,381,815
common shares (of which 1,798,883 are treasury shares)
Majority
shareholder: Quantum Partners LP
Legal address:
1300 Thames St. 5th FL, Baltimore MD 21231-3495, United States of America
Parent company activity:
Investing
Capital stock: 25,910,004
common shares
Adecoagro
S.A.
Condensed Consolidated
Interim Statements of Financial Position
as of March
31, 2015 and December 31, 2014
(All amounts
in US$ thousands, except shares and per share data and as otherwise indicated)
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March
31, |
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December
31, |
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Note |
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2015 |
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2014 |
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(unaudited) |
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ASSETS |
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Non-Current Assets |
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Property, plant and equipment |
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6 |
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711,450 |
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776,905 |
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Investment property |
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7 |
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6,470 |
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6,675 |
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Intangible assets |
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8 |
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21,556 |
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|
23,778 |
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Biological assets |
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9 |
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261,823 |
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286,044 |
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Investments in joint ventures |
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1,839 |
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2,752 |
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Deferred income tax assets |
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18 |
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54,224 |
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45,597 |
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Trade and other receivables |
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11 |
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44,417 |
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50,590 |
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Other assets |
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498 |
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587 |
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Total Non-Current Assets |
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1,102,277 |
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1,192,928 |
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Current Assets |
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Biological assets |
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9 |
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47,712 |
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55,188 |
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Inventories |
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12 |
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97,240 |
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104,919 |
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Trade and other receivables |
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11 |
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129,997 |
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164,526 |
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Derivative financial instruments |
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10 |
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18,898 |
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7,966 |
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Cash and cash equivalents |
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13 |
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198,279 |
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113,795 |
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Total Current Assets |
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492,126 |
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446,394 |
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TOTAL ASSETS |
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1,594,403 |
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1,639,322 |
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SHAREHOLDERS EQUITY |
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Capital and reserves attributable to equity holders of the parent |
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Share capital |
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14 |
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183,573 |
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183,573 |
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Share premium |
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14 |
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933,790 |
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933,044 |
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Cumulative translation adjustment |
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|
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(473,654 |
) |
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(395,804 |
) |
Equity-settled compensation |
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17,401 |
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16,735 |
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Cash flow hedge |
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(84,955 |
) |
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(43,064 |
) |
Reserve from the sale of non-controlling interests in subsidiaries |
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25,508 |
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25,508 |
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Treasury shares |
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(2,699 |
) |
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(2,840 |
) |
Retained earnings |
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58,471 |
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45,644 |
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Equity attributable to equity holders of the parent |
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657,435 |
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762,796 |
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Non-controlling interest |
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8,275 |
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7,589 |
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TOTAL SHAREHOLDERS EQUITY |
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665,710 |
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770,385 |
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LIABILITIES |
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Non-Current Liabilities |
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Trade and other payables |
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16 |
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2,363 |
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2,391 |
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Borrowings |
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17 |
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584,696 |
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491,324 |
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Deferred income tax liabilities |
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18 |
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38,829 |
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39,635 |
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Payroll and social security liabilities |
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19 |
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1,322 |
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|
1,278 |
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Derivatives financial instruments |
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10 |
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44 |
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39 |
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Provisions for other liabilities |
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20 |
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1,971 |
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|
2,013 |
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Total Non-Current Liabilities |
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629,225 |
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536,680 |
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Current Liabilities |
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Trade and other payables |
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16 |
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65,684 |
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83,100 |
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Current income tax liabilities |
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|
170 |
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|
76 |
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Payroll and social security liabilities |
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19 |
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24,625 |
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27,315 |
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Borrowings |
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17 |
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193,141 |
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207,182 |
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Derivative financial instruments |
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10 |
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15,036 |
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|
13,860 |
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Provisions for other liabilities |
|
20 |
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|
812 |
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|
724 |
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Total Current Liabilities |
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299,468 |
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|
332,257 |
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TOTAL LIABILITIES |
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928,693 |
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868,937 |
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TOTAL SHAREHOLDERS EQUITY AND LIABILITIES |
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1,594,403 |
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1,639,322 |
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The accompanying notes
are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Condensed Consolidated
Interim Statements of Income
for the three-month
periods ended March 31, 2015 and 2014
(All amounts
in US$ thousands, except shares and per share data and as otherwise indicated)
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Note |
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March
31, 2015 |
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March
31, 2014 |
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(unaudited) |
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Sales of manufactured products and services rendered |
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21 |
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|
84,480 |
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|
68,811 |
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Cost of manufactured products sold and services rendered |
|
22 |
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|
(60,234 |
) |
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|
(46,340 |
) |
Gross Profit from Manufacturing Activities |
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24,246 |
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|
22,471 |
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Sales of agricultural produce and biological assets |
|
21 |
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|
29,738 |
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|
|
30,318 |
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Cost of agricultural produce sold and direct agricultural selling expenses |
|
22 |
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(29,738 |
) |
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|
(30,318 |
) |
Initial recognition and changes in fair value of biological assets and agricultural produce |
|
9 |
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23,666 |
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|
38,945 |
|
Changes in net realizable value of agricultural produce after harvest |
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|
(162 |
) |
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|
861 |
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Gross Profit from Agricultural Activities |
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|
23,504 |
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|
39,806 |
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Margin on Manufacturing and Agricultural Activities Before Operating Expenses |
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|
|
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47,750 |
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|
62,277 |
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General and administrative expenses |
|
22 |
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(12,018 |
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(10,780 |
) |
Selling expenses |
|
22 |
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(13,255 |
) |
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(11,636 |
) |
Other operating (expense)/ income, net |
|
24 |
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21,625 |
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(13,570 |
) |
Share of loss of joint ventures |
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(878 |
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|
(225 |
) |
Profit from Operations Before Financing and Taxation |
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|
43,224 |
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|
26,066 |
|
Finance income |
|
25 |
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|
3,291 |
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|
|
2,165 |
|
Finance costs |
|
25 |
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|
|
(27,783 |
) |
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|
(18,338 |
) |
Financial results, net |
|
25 |
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|
|
(24,492 |
) |
|
|
(16,173 |
) |
Profit Before Income Tax |
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|
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|
18,732 |
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|
9,893 |
|
Income tax expense |
|
18 |
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|
|
(4,971 |
) |
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|
(7,297 |
) |
Profit for the Period |
|
|
|
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|
13,761 |
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|
|
2,596 |
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Attributable to: |
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Equity holders of the parent |
|
|
|
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12,827 |
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|
2,590 |
|
Non-controlling interest |
|
|
|
|
|
934 |
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|
6 |
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Income per share attributable to the equity holders of the parent during the period: |
|
|
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|
|
|
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|
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Basic |
|
|
|
|
|
0.106 |
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|
|
0.021 |
|
Diluted |
|
|
|
|
|
0.105 |
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|
|
0.021 |
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The accompanying notes
are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Condensed Consolidated
Interim Statements of Comprehensive Income
for the three-month
periods ended March 31, 2015 and 2014
(All amounts
in US$ thousands, except shares and per share data and as otherwise indicated)
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|
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|
|
March
31, 2015 |
|
|
March
31, 2014 |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
Profit for the period |
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|
13,761 |
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|
|
2,596 |
|
Other comprehensive income: |
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|
|
|
|
|
|
|
Exchange differences on translating foreign operations |
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|
(78,097 |
) |
|
|
(13,785 |
) |
Cash flow hedge |
|
|
(41,892 |
) |
|
|
(4,382 |
) |
Other comprehensive loss for the period |
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|
(119,989 |
) |
|
|
(18,167 |
) |
Total comprehensive loss for the period |
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|
(106,228 |
) |
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|
(15,571 |
) |
|
|
|
|
|
|
|
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|
Attributable to: |
|
|
|
|
|
|
|
|
Equity holders of the parent |
|
|
(106,914 |
) |
|
|
(15,565 |
) |
Non-controlling interest |
|
|
686 |
|
|
|
(6 |
) |
The accompanying notes
are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Condensed Consolidated
Interim Statements of Changes in Shareholders Equity
for the
three-month periods ended March 31, 2015 and 2014
(All amounts
in US$ thousands, except shares and per share data and as otherwise indicated)
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Attributable
to equity holders of the parent |
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|
|
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|
Share
Capital (Note 14) |
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|
Share
Premium |
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|
Cumulative
Translation Adjustment |
|
|
Equity-settled
Compensation |
|
|
Cash
flow
hedge
(*) |
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Other
reserves |
|
|
Treasury
shares |
|
|
Retained
Earnings |
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|
Subtotal |
|
|
Non-
Controlling Interest |
|
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Total
Shareholders
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2014 |
|
|
183,573 |
|
|
|
939,072 |
|
|
|
(311,807 |
) |
|
|
17,352 |
|
|
|
(15,782 |
) |
|
|
(161 |
) |
|
|
(961 |
) |
|
|
43,018 |
|
|
|
854,304 |
|
|
|
45 |
|
|
|
854,349 |
|
Profit for the period |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,590 |
|
|
|
2,590 |
|
|
|
6 |
|
|
|
2,596 |
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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|
- Items that may be reclassified subsequently to profit or loss: |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences on translating foreign operations |
|
|
- |
|
|
|
- |
|
|
|
(13,778 |
) |
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(13,778 |
) |
|
|
(7 |
) |
|
|
(13,785 |
) |
Cash flow hedge (*) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4,377 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4,377 |
) |
|
|
(5 |
) |
|
|
(4,382 |
) |
Other comprehensive income for the period |
|
|
- |
|
|
|
- |
|
|
|
(13,778 |
) |
|
|
- |
|
|
|
(4,377 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(18,155 |
) |
|
|
(12 |
) |
|
|
(18,167 |
) |
Total comprehensive income for the period |
|
|
- |
|
|
|
- |
|
|
|
(13,778 |
) |
|
|
- |
|
|
|
(4,377 |
) |
|
|
- |
|
|
|
- |
|
|
|
2,590 |
|
|
|
(15,565 |
) |
|
|
(6 |
) |
|
|
(15,571 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee share options (Note 15) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Value of employee services |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6 |
|
|
|
- |
|
|
|
6 |
|
- Exercised |
|
|
- |
|
|
|
518 |
|
|
|
- |
|
|
|
(177 |
) |
|
|
- |
|
|
|
- |
|
|
|
118 |
|
|
|
- |
|
|
|
459 |
|
|
|
- |
|
|
|
459 |
|
- Forfeited |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(31 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
31 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Restricted shares (Note 15): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Value of employee services |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
792 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
792 |
|
|
|
- |
|
|
|
792 |
|
- Vested |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
- Forfeited |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2 |
|
|
|
(2 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Purchase of own shares (Note 14) |
|
|
- |
|
|
|
(10,424 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,534 |
) |
|
|
- |
|
|
|
(12,958 |
) |
|
|
- |
|
|
|
(12,958 |
) |
Balance at March 31, 2014 (unaudited) |
|
|
183,573 |
|
|
|
929,166 |
|
|
|
(325,585 |
) |
|
|
17,942 |
|
|
|
(20,159 |
) |
|
|
(159 |
) |
|
|
(3,379 |
) |
|
|
45,639 |
|
|
|
827,038 |
|
|
|
39 |
|
|
|
827,077 |
|
(*) Net of 2,448 of
Income Tax |
The accompanying notes
are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Condensed Consolidated
Interim Statements of Changes in Shareholders Equity
for the
three-month periods ended March 31, 2015 and 2014 (continued)
(All amounts in US$ thousands, except shares and per share data
and as otherwise indicated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to equity holders of the parent |
|
|
|
|
|
|
|
|
|
Share
Capital
(Note 14) |
|
|
Share
Premium |
|
|
Cumulative
Translation Adjustment |
|
|
Equity-settled
Compensation |
|
|
Cash
flow
hedge |
|
|
Treasury
shares |
|
|
Reserve from
the sale of non-
controlling interests in subsidiaries |
|
|
Retained
Earnings |
|
|
Subtotal |
|
|
Non-
Controlling
Interest |
|
|
Total
Shareholders
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2015 |
|
|
183,573 |
|
|
|
933,044 |
|
|
|
(395,804 |
) |
|
|
16,735 |
|
|
|
(43,064 |
) |
|
|
(2,840 |
) |
|
|
25,508 |
|
|
|
45,644 |
|
|
|
762,796 |
|
|
|
7,589 |
|
|
|
770,385 |
|
Profit for the period |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
12,827 |
|
|
|
12,827 |
|
|
|
934 |
|
|
|
13,761 |
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Items that may be reclassified subsequently to profit or loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences on translating foreign operations |
|
|
- |
|
|
|
- |
|
|
|
(77,850 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(77,850 |
) |
|
|
(247 |
) |
|
|
(78,097 |
) |
Cash flow hedge (*) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(41,891 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(41,891 |
) |
|
|
(1 |
) |
|
|
(41,892 |
) |
Other comprehensive income for the period |
|
|
- |
|
|
|
- |
|
|
|
(77,850 |
) |
|
|
- |
|
|
|
(41,891 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(119,741 |
) |
|
|
(248 |
) |
|
|
(119,989 |
) |
Total comprehensive income for the period |
|
|
- |
|
|
|
- |
|
|
|
(77,850 |
) |
|
|
- |
|
|
|
(41,891 |
) |
|
|
- |
|
|
|
- |
|
|
|
12,827 |
|
|
|
(106,914 |
) |
|
|
686 |
|
|
|
(106,228 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee share options (Note 15) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Value of employee services |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
- Exercised |
|
|
- |
|
|
|
746 |
|
|
|
- |
|
|
|
(253 |
) |
|
|
- |
|
|
|
141 |
|
|
|
- |
|
|
|
- |
|
|
|
634 |
|
|
|
- |
|
|
|
634 |
|
- Forfeited |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Restricted shares (Note 15): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Value of employee services |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
919 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
919 |
|
|
|
- |
|
|
|
919 |
|
- Vested |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
- Forfeited |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Balance at March 31, 2015 (unaudited) |
|
|
183,573 |
|
|
|
933,790 |
|
|
|
(473,654 |
) |
|
|
17,401 |
|
|
|
(84,955 |
) |
|
|
(2,699 |
) |
|
|
25,508 |
|
|
|
58,471 |
|
|
|
657,435 |
|
|
|
8,275 |
|
|
|
665,710 |
|
(*) Net of 21,658 of Income Tax. |
The accompanying notes
are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Condensed Consolidated Interim Statements of Cash Flows |
for the
three-month periods ended March 31, 2015 and 2014
(All amounts
in US$ thousands, except shares and per share data and as otherwise indicated)
|
|
|
|
|
|
|
|
|
|
|
|
Note |
|
|
March
31,
2015 |
|
|
March
31,
2014 |
|
|
|
|
|
|
(unaudited) |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
Profit for the period |
|
|
|
|
|
13,761 |
|
|
|
2,596 |
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
18 |
|
|
|
4,971 |
|
|
|
7,297 |
|
Depreciation |
|
22 |
|
|
|
4,742 |
|
|
|
5,186 |
|
Amortization |
|
22 |
|
|
|
135 |
|
|
|
101 |
|
Gain from of disposal of other property items |
|
24 |
|
|
|
(393 |
) |
|
|
(351 |
) |
Equity settled share-based compensation granted |
|
23 |
|
|
|
919 |
|
|
|
798 |
|
(Gain)/loss from derivative financial instruments and forwards |
|
24, 25 |
|
|
|
(21,316 |
) |
|
|
13,335 |
|
Interest and other expense, net |
|
25 |
|
|
|
10,783 |
|
|
|
12,075 |
|
Initial recognition and changes in fair value of non harvested biological assets (unrealized) |
|
|
|
|
|
(20,065 |
) |
|
|
(28,787 |
) |
Changes in net realizable value of agricultural produce after harvest (unrealized) |
|
|
|
|
|
157 |
|
|
|
191 |
|
Provision and allowances |
|
|
|
|
|
458 |
|
|
|
2,094 |
|
Share of loss from joint venture |
|
|
|
|
|
878 |
|
|
|
225 |
|
Foreign exchange gains, net |
|
25 |
|
|
|
13,694 |
|
|
|
3,702 |
|
Cash flow hedge – transfer from equity |
|
25 |
|
|
|
(464 |
) |
|
|
245 |
|
Subtotal |
|
|
|
|
|
8,260 |
|
|
|
18,707 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Decrease in trade and other receivables |
|
|
|
|
|
24,435 |
|
|
|
6,946 |
|
Increase in inventories |
|
|
|
|
|
(891 |
) |
|
|
(3,643 |
) |
Decrease in biological assets |
|
|
|
|
|
11,296 |
|
|
|
18,329 |
|
Decrease in other assets |
|
|
|
|
|
6 |
|
|
|
17 |
|
Decrease /(increase) in derivative financial |
|
|
|
|
|
11,309 |
|
|
|
(2,980 |
) |
(Increase)/decrease in trade and other payables |
|
|
|
|
|
(13,027 |
) |
|
|
4,438 |
|
Increase /(decrease) in payroll and social security liabilities |
|
|
|
|
|
486 |
|
|
|
(1,095 |
) |
Increase in provisions for other liabilities |
|
|
|
|
|
19 |
|
|
|
281 |
|
Net cash generated in operating activities before interest and taxes paid |
|
|
|
|
|
41,893 |
|
|
|
41,000 |
|
Income tax paid |
|
|
|
|
|
(90 |
) |
|
|
(85 |
) |
Net cash generated from operating activities |
|
|
|
|
|
41,803 |
|
|
|
40,915 |
|
The accompanying notes
are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Condensed Consolidated
Interim Statements of Cash Flows
for the
three-month periods ended March 31, 2015 and 2014 (continued)
(All amounts
in US$ thousands, except shares and per share data and as otherwise indicated)
|
|
|
|
|
|
|
|
|
|
|
|
Note |
|
|
March
31,
2015 |
|
|
March
31,
2014 |
|
|
|
|
|
|
(unaudited) |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
|
|
|
(51,284 |
) |
|
|
(87,963 |
) |
Purchases of intangible assets |
|
8 |
|
|
|
(195 |
) |
|
|
(238 |
) |
Purchase of cattle and non-current biological assets planting cost |
|
|
|
|
|
(11,268 |
) |
|
|
(25,130 |
) |
Interest received |
|
25 |
|
|
|
2,568 |
|
|
|
1,477 |
|
Investments in joint ventures |
|
|
|
|
|
- |
|
|
|
(1,372 |
) |
Proceeds from sale of property, plant and equipment |
|
|
|
|
|
127 |
|
|
|
268 |
|
Loans to joint venture |
|
|
|
|
|
(561 |
) |
|
|
- |
|
Net cash used in investing activities |
|
|
|
|
|
(60,613 |
) |
|
|
(112,958 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
Proceeds from equity settled share-based compensation exercised |
|
|
|
|
|
634 |
|
|
|
459 |
|
Proceeds from long-term borrowings |
|
|
|
|
|
160,746 |
|
|
|
120,770 |
|
Payments of long-term borrowings |
|
|
|
|
|
(11,189 |
) |
|
|
(30,192 |
) |
Proceeds from short-term borrowings |
|
|
|
|
|
5,216 |
|
|
|
18,959 |
|
Payment of short-term borrowings |
|
|
|
|
|
(19,810 |
) |
|
|
(11,242 |
) |
Interest paid |
|
|
|
|
|
(9,718 |
) |
|
|
(10,201 |
) |
Purchase of own shares |
|
|
|
|
|
- |
|
|
|
(12,992 |
) |
Net cash generated from financing activities |
|
|
|
|
|
125,879 |
|
|
|
75,561 |
|
Net decrease in cash and cash equivalents |
|
|
|
|
|
107,069 |
|
|
|
3,518 |
|
Cash and cash equivalents at beginning of period |
|
|
|
|
|
113,795 |
|
|
|
232,147 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
|
|
|
(22,585 |
) |
|
|
11,766 |
|
Cash and cash equivalents at end of period |
|
|
|
|
|
198,279 |
|
|
|
247,431 |
|
The accompanying notes
are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Notes to the Condensed
Consolidated Interim Financial Statements (continued)
(All amounts
in US$ thousands, except shares and per share data and as otherwise indicated)
Adecoagro S.A. (the
Company or Adecoagro) is the Groups ultimate parent company and is a société anonyme
(stock corporation) organized under the laws of the Grand Duchy of Luxembourg. Adecoagro is a holding company primarily engaged
through its operating subsidiaries in agricultural and agro-industrial activities. The Company and its operating subsidiaries are
collectively referred to hereinafter as the Group. These activities are carried out through three major lines of
business, namely, Farming; Sugar, Ethanol and Energy and Land Transformation. Farming is further comprised of three reportable
segments, which are described in detail in Note 5 to these condensed consolidated interim financial statements.
Adecoagro is a public
company listed in the New York Stock Exchange as a foreign registered company under the symbol of AGRO.
These condensed consolidated
interim financial statements have been approved for issue by the Board of Directors on May 12, 2015.
On March 27, 2015, Adecoagro
commenced a series of transactions for the purpose of transferring the domicile of Adecoagro LP to Luxembourg. In connection with
the Adecoagro LP redomiciliation, Adecoagro merged IFH LP into Adecoagro LP with Adecoagro LP as the surviving entity. In connection
with this merger, all of the assets and liabilities of IFH L.P. vested in Adecoagro LP, Ona Ltd became its general partner and
Toba Ltd became a wholly owned subsidiary of Adecoagro LP. In connection with the transactions completed on March 27, 2015, Ona
Ltd. assigned its general partnership interest in Adecoagro LP to Adecoagro GP S.a.r.l., a societe responsibilitie limitee organized
under the laws of Luxembourg, on April 1, 2015. Also on April 1, 2015, Adecoagro completed the redomiciliation of Adecoagro LP
out of Delaware to Luxembourg and Adecoagro LP, without dissolution or liquidation, continued its corporate existence as Adecoagro
LP S.C.S., a societe en commandite simple organized under Luxembourg law, effective April 2, 2015. Since that date the affairs
of Adecoagro LP S.C.S. have been governed by its by-laws and Luxembourg law. This operation had no accounting impact.
2. |
Basis of preparation and presentation |
The information presented
in the accompanying condensed consolidated interim financial statements (interim financial statements) as of March
31, 2015 and for the three-month periods ended March 31, 2015 and 2014 is unaudited and in the opinion of management reflect all
adjustments necessary to present fairly the financial position of the Group as of March 31, 2015, results of operations and cash
flows for the three-month periods ended March 31, 2015 and 2014. All such adjustments are of a normal recurring nature. In preparing
these accompanying interim financial statements, management has made certain estimates and assumptions that affect reported amounts
in the financial statements and disclosures of contingencies. Actual results may differ from those estimates. The results for interim
periods are not necessarily indicative of annual results.
These interim financial
statements have been prepared in accordance with IAS 34, ‘Interim financial reporting and they should be read in conjunction
with the annual financial statements for the year ended 31 December 2014, which have been prepared in accordance with IFRSs.
The accounting policies
adopted in the preparation of the interim financial statements are consistent with those followed in the preparation of the Groups
annual consolidated financial statements for the year ended December 31, 2014.
A complete list of standards,
amendments and interpretations to existing standards published but not yet effective for the Group is described in Note 2.1 to
the annual financial statements. None of those standards have a material impact on the information to be presented in the financial
statements.
During the three months
ended March 31, 2015, the IASB did not publish new standards that would have a material impact on the Group when they become effective.
The accompanying notes
are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Notes to the Condensed
Consolidated Interim Financial Statements (continued)
(All amounts
in US$ thousands, except shares and per share data and as otherwise indicated)
2. |
Basis of preparation and presentation (continued) |
Seasonality of
operations
The Groups business
activities are inherently seasonal. The Group generally harvest and sell its grains (corn, soybean, rice and sunflower) between
February and June, with the exception of wheat, which is harvested from December to January. Coffee and cotton are different in
that while both are typically harvested from June to August, they require a conditioning process which takes about two to three
months. Sales in other business segments, such as in Dairy business segments, tend to be more stable. However, the sale of milk
is generally higher during the fourth quarter, when the weather is warmer and pasture conditions are more favorable. The sugarcane
harvesting period typically begins April/May and ends in November/December. This creates fluctuations in sugar and ethanol inventory,
usually peaking in December to cover sales between crop harvests (i.e., January through April). As a result of the above factors,
there may be significant variations in the results of operations from one quarter to another, as planting activities may be more
concentrated in one quarter whereas harvesting activities may be more concentrated in another quarter. In addition, quarterly results
may vary as a result of the effects of fluctuations in commodities prices, production yields and costs on the determination of
initial recognition and changes in fair value of biological assets and agricultural produce.
3. |
Financial risk management |
Risk management principles
and processes
The Group continues
to be exposed to several risks arising from financial instruments including price risk, exchange rate risk, interest rate risk,
liquidity risk and credit risk. A thorough explanation of the Group´s risks and the Group´s approach to the identification,
assessment and mitigation of risks is included in Note 3 to the annual financial statements. There have been no changes to the
Group´s exposure and risk management principles and processes since December 31, 2014 and refers readers to the annual financial
statements for information.
However, the Group considers
that the following tables below provide useful information to understand the Group´s interim results for the three month
period ended March 31, 2015. These disclosures do not appear in any particular order of potential materiality or probability of
occurrence.
The accompanying notes
are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Notes to the Condensed
Consolidated Interim Financial Statements (continued)
(All amounts
in US$ thousands, except shares and per share data and as otherwise indicated)
3. |
Financial risk management (continued) |
The following tables
show the Groups net monetary position broken down by various currencies for each functional currency in which the Group
operates at March 31, 2015. All amounts are shown in US dollars.
|
|
March
31, 2015 |
|
|
|
(unaudited) |
|
|
|
Functional
currency |
|
Net
monetary position (Liability)/ Asset |
|
Argentine
Peso |
|
|
Brazilian
Reais |
|
|
Uruguayan
Peso |
|
|
US
Dollar |
|
|
Total |
|
Argentine Peso |
|
|
(17,723 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(17,723 |
) |
Brazilian Reais |
|
|
- |
|
|
|
(232,840 |
) |
|
|
- |
|
|
|
- |
|
|
|
(232,840 |
) |
US Dollar |
|
|
(68,109 |
) |
|
|
(371,435 |
) |
|
|
38,233 |
|
|
|
84,795 |
|
|
|
(316,516 |
) |
Uruguayan Peso |
|
|
- |
|
|
|
- |
|
|
|
(132 |
) |
|
|
- |
|
|
|
(132 |
) |
Total |
|
|
(85,832 |
) |
|
|
(604,275 |
) |
|
|
38,101 |
|
|
|
84,795 |
|
|
|
(567,211 |
) |
The Groups analysis
shown on the tables below is carried out based on the exposure of each functional currency subsidiary against the US dollar. The
Group estimated that, other factors being constant, a 10% appreciation of the US dollar against the respective functional currencies
for the period ended March 31, 2015 would have increased the Groups Profit Before Income Tax for the period.
A 10% depreciation of the US dollar against the functional currencies would have an equal and opposite effect on the income statement.
A portion of this effect would be recognized as other comprehensive income since a portion of the Companys borrowings was
used as cash flow hedge of the foreign exchange rate risk of a portion of its highly probable future sales in US dollars (see Hedge
Accounting - Cash Flow Hedge below for details).
|
|
March
31, 2015 |
|
|
|
(unaudited) |
|
|
|
Functional
currency |
|
Net
monetary position |
|
Argentine
Peso |
|
|
Brazilian
Reais |
|
|
Uruguayan
Peso |
|
|
US
Dollar |
|
|
Total |
|
Argentine Peso |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Brazilian Reais |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
US Dollar |
|
|
(6,811 |
) |
|
|
(37,144 |
) |
|
|
3,823 |
|
|
|
- |
|
|
|
(40,132 |
) |
Uruguayan Peso |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
(Decrease) or increase in Profit Before Income Tax |
|
|
(6,811 |
) |
|
|
(37,144 |
) |
|
|
3,823 |
|
|
|
- |
|
|
|
(40,132 |
) |
Hedge Accounting
- Cash Flow Hedge
Effective July 1, 2013,
the Group formally documented and designated cash flow hedging relationships to hedge the foreign exchange rate risk of a portion
of its highly probable future sales in US dollars using a portion of its borrowings denominated in US dollars, currency forwards
and foreign currency floating-to-fixed interest rate swaps.
The Company
expects that the cash flows will occur and affect profit or loss between 2015 and 2020.
For the period ended March
31, 2015, a total amount before income tax of US$ 63,085 was recognized in other comprehensive income and an amount of US$ 464
gain was reclassified from equity to profit or loss within Financial results, net.
The accompanying notes
are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Notes to the Condensed
Consolidated Interim Financial Statements (continued)
(All amounts
in US$ thousands, except shares and per share data and as otherwise indicated)
3. |
Financial risk management (continued) |
The following table
shows a breakdown of the Groups fixed-rate and floating-rate borrowings per currency denomination and functional currency
of the subsidiary issuing the loans (excluding finance leases) at March 31, 2015 (all amounts are shown in US dollars):
|
|
March
31, 2015 |
|
|
|
(unaudited) |
|
|
|
Functional
currency |
|
Rate
per currency denomination |
|
Argentine
Peso |
|
|
Brazilian
Reais |
|
|
Uruguayan
Peso |
|
|
Total |
|
Fixed rate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Argentine Peso |
|
|
15,136 |
|
|
|
- |
|
|
|
- |
|
|
|
15,136 |
|
Brazilian Reais |
|
|
- |
|
|
|
190,911 |
|
|
|
- |
|
|
|
190,911 |
|
US Dollar |
|
|
47,164 |
|
|
|
32,260 |
|
|
|
- |
|
|
|
79,424 |
|
Subtotal Fixed-rate borrowings |
|
|
62,300 |
|
|
|
223,171 |
|
|
|
- |
|
|
|
285,471 |
|
Variable rate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazilian Reais |
|
|
- |
|
|
|
90,864 |
|
|
|
- |
|
|
|
90,864 |
|
US Dollar |
|
|
26,518 |
|
|
|
374,545 |
|
|
|
- |
|
|
|
401,063 |
|
Subtotal Variable-rate borrowings |
|
|
26,518 |
|
|
|
465,409 |
|
|
|
- |
|
|
|
491,927 |
|
Total borrowings as per analysis |
|
|
88,818 |
|
|
|
688,580 |
|
|
|
- |
|
|
|
777,398 |
|
Finance leases |
|
|
439 |
|
|
|
- |
|
|
|
- |
|
|
|
439 |
|
Total borrowings at March 31, 2015 |
|
|
89,257 |
|
|
|
688,580 |
|
|
|
- |
|
|
|
777,837 |
|
At March 31, 2015, if
interest rates on floating-rate borrowings had been 1 % higher (or lower) with all other variables held constant, Loss Before
Income Tax for the period would decrease as follows:
|
|
March 31, 2015 |
|
|
|
(unaudited) |
|
|
|
Functional
currency |
|
Rate
per currency denomination |
|
Argentine
Peso |
|
|
Brazilian
Reais |
|
|
Uruguayan
Peso |
|
|
Total |
|
Variable rate: |
|
|
|
|
|
|
|
|
|
|
|
|
Brazilian Reais |
|
|
- |
|
|
|
(909 |
) |
|
|
- |
|
|
|
(909 |
) |
US Dollar |
|
|
(265 |
) |
|
|
(3,745 |
) |
|
|
- |
|
|
|
(4,010 |
) |
(Decrease) or increase in Profit Before Income Tax |
|
|
(265 |
) |
|
|
(4,654 |
) |
|
|
- |
|
|
|
(4,919 |
) |
As of March 31, 2015,
4 banks accounted for more than 83% of the total cash deposited (Rabobank, HSBC,Banco do Brasil and ING).
The accompanying notes
are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Notes to the Condensed
Consolidated Interim Financial Statements (continued)
(All amounts in US$ thousands,
except shares and per share data and as otherwise indicated)
3. |
Financial risk management (continued) |
|
· |
Derivative financial instruments |
The following table shows
the outstanding positions for each type of derivative contract as of March 31, 2015:
|
|
March
31, 2015 |
|
Type
of |
|
Quantities
(thousands)
(**) |
|
|
Notional |
|
|
Market |
|
|
Profit
/ (Loss)
(*) |
|
derivative
contract |
|
amount |
|
|
Value
Asset/ (Liability) |
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
(unaudited) |
|
Futures: |
|
|
|
|
|
|
|
|
|
|
|
|
Sale |
|
|
|
|
|
|
|
|
|
|
|
|
Corn |
|
|
235 |
|
|
|
35,126 |
|
|
|
(147 |
) |
|
|
1,754 |
|
Soybean |
|
|
221 |
|
|
|
70,501 |
|
|
|
1,217 |
|
|
|
1,961 |
|
Wheat |
|
|
4 |
|
|
|
581 |
|
|
|
(109 |
) |
|
|
(111 |
) |
Sugar |
|
|
252 |
|
|
|
81,403 |
|
|
|
12,677 |
|
|
|
10,443 |
|
Ethanol |
|
|
5 |
|
|
|
1,942 |
|
|
|
26 |
|
|
|
26 |
|
OTC: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sugar |
|
|
55 |
|
|
|
23,150 |
|
|
|
1,368 |
|
|
|
(713 |
) |
Options: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buy put |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corn |
|
|
17 |
|
|
|
390 |
|
|
|
480 |
|
|
|
66 |
|
Soybean |
|
|
10 |
|
|
|
366 |
|
|
|
257 |
|
|
|
(109 |
) |
Sugar |
|
|
35 |
|
|
|
182 |
|
|
|
941 |
|
|
|
941 |
|
Sell call |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corn |
|
|
9 |
|
|
|
(360 |
) |
|
|
(171 |
) |
|
|
118 |
|
Sugar |
|
|
30 |
|
|
|
41 |
|
|
|
(130 |
) |
|
|
- |
|
Sell put |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Soybean |
|
|
4 |
|
|
|
(152 |
) |
|
|
(82 |
) |
|
|
(70 |
) |
Sugar |
|
|
36 |
|
|
|
47 |
|
|
|
(151 |
) |
|
|
(151 |
) |
Buy call |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Soybean |
|
|
2 |
|
|
|
5 |
|
|
|
- |
|
|
|
(5 |
) |
Sugar |
|
|
30 |
|
|
|
29 |
|
|
|
298 |
|
|
|
- |
|
Total |
|
|
947 |
|
|
|
213,251 |
|
|
|
16,474 |
|
|
|
14,290 |
|
(*)
Included in line Gain from commodity derivative financial instruments Note 25.
(**)
All quantities expressed in tons except otherwise indicated.
Commodity future contract
fair values are computed with reference to quoted market prices on future exchanges.
The accompanying notes
are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Notes to the Condensed
Consolidated Interim Financial Statements (continued)
(All amounts
in US$ thousands, except shares and per share data and as otherwise indicated)
3. |
Financial risk management (continued) |
|
§ |
Other derivative financial instruments |
As of March 31, 2015,
the Group has floating-to-fixed interest rate swap, foreign currency fixed-to-floating interest rate swap and foreign currency
floating-to fixed interest rate swap agreements, which were also outstanding as of December 31, 2014.
During the period ended
March 31, 2014, the Group entered into several currency forward contracts with Brazilian banks in order to hedge the fluctuation
of the Brazilian Reais against US Dollar for a total notional amount of US$ 2.5 million. No contract of this kind was entered in
2015. Those contracts entered in 2014 had maturity dates ranging between March 2014 and June 2014. The outstanding contracts resulted
in the recognition of a gain of US$ 0.1 million in 2014. Gain and losses on currency forward contracts are included within Financial
results, net in the statement of income.
During the period ended
on March 2015, the Group entered into several currency forward contracts with Uruguayan banks in order to hedge the fluctuation
of the US Dollar against Euro for a total notional amount of US$ 26.5 million. The currency forward contracts maturity date ranging
between June 2015 and September 2015. The outstanding contracts resulted in the recognition of a gain amounting to US$ 1.51million
in 2015. Gain and losses on currency forward contracts are included within Financial results, net in the statement
of income.
4. |
Critical accounting estimates and judgments |
The Groups critical
accounting policies are also consistent with those of the audited annual financial statements for the year ended December 31, 2014
described in Note 4.
IFRS 8 Operating
Segments requires an entity to report financial and descriptive information about its reportable segments, which are operating
segments or aggregations of operating segments that meet specified criteria. Operating segments are components of an entity about
which separate financial information is available that is evaluated regularly by the chief operating decision maker (CODM)
in deciding how to allocate resources and in assessing performance. The CODM evaluates the business based on the differences in
the nature of its operations, products and services. The amount reported for each segment item is the measure reported to the CODM for these purposes.
The Group operates in
three major lines of business, namely, Farming; Sugar, Ethanol and Energy; and Land Transformation.
The accompanying notes
are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Notes to the Condensed
Consolidated Interim Financial Statements (continued)
(All amounts
in US$ thousands, except shares and per share data and as otherwise indicated)
|
5. |
Segment information (continued) |
|
· |
The Groups ‘Farming line of business is further comprised of three reportable segments: |
|
§ |
The Groups ‘Crops Segment consists of planting, harvesting and sale of grains, oilseeds and fibers (including wheat, corn, soybeans, cotton and sunflowers, among others), and to a lesser extent the provision of grain warehousing/conditioning, handling and drying services to third parties, and the purchase and sale of crops produced by third parties crops. Each underlying crop in the Crops segment does not represent a separate operating segment. Management seeks to maximize the use of the land through the cultivation of one or more type of crops. Types and surface amount of crops cultivated may vary from harvest year to harvest year depending on several factors, some of them out of the Group´s control. Management is focused on the long-term performance of the productive land, and to that extent, the performance is assessed considering the aggregated combination, if any, of crops planted in the land. A single manager is responsible for the management of operating activity of all crops rather than for each individual crop. |
|
§ |
The Groups ‘Rice Segment consists of planting, harvesting, processing and marketing of rice; |
|
§ |
The Groups ‘Dairy Segment consists of the production and sale of raw milk; |
|
§ |
The Groups ‘All Other Segments column consists of the aggregation of the remaining non-reportable operating segments, which do not meet the quantitative thresholds for disclosure and for which the Groups management does not consider them to be of continuing significance as from January 1, 2014, namely, Coffee and Cattle. |
|
· |
The Groups ‘Sugar, Ethanol and Energy Segment consists of cultivating sugarcane which is processed in owned sugar mills, transformed into ethanol, sugar and electricity and marketed; |
|
· |
The Groups ‘Land Transformation Segment comprises the (i) identification and acquisition of underdeveloped and undermanaged farmland businesses; and (ii) realization of value through the strategic disposition of assets (generating profits). |
The measurement principles
for the Groups segment reporting structure are based on the IFRS principles adopted in the interim financial statements.
Total segment assets
and liabilities are measured in a manner consistent with that of the condensed consolidated interim financial statements. These
assets and liabilities are allocated based on the operations of the segment and the physical location of the asset. The Groups
investment in the joint venture CHS S.A. is allocated to the ‘Crops segment.
The following table
presents information with respect to the Groups reportable segments. Certain other activities of a holding function nature
not allocable to the segments are disclosed in the column ‘Corporate.
The accompanying notes
are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Notes to the Condensed
Consolidated Interim Financial Statements (continued)
(All amounts
in US$ thousands, except shares and per share data and as otherwise indicated)
5. |
Segment information (continued) |
Segment analysis for
the three-month period ended March 31, 2015 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Farming |
|
|
Sugar, |
|
|
|
|
|
|
|
|
|
|
|
|
Crops |
|
|
Rice |
|
|
Dairy |
|
|
All
Other Segments |
|
|
Farming
subtotal |
|
|
Ethanol
and
Energy |
|
|
Land
Transformation |
|
|
Corporate |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of manufactured products and services rendered |
|
|
77 |
|
|
|
28,479 |
|
|
|
83 |
|
|
|
310 |
|
|
|
28,949 |
|
|
|
55,531 |
|
|
|
- |
|
|
|
- |
|
|
|
84,480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of manufactured products sold and services rendered |
|
|
- |
|
|
|
(23,156 |
) |
|
|
(168 |
) |
|
|
(186 |
) |
|
|
(23,510 |
) |
|
|
(36,724 |
) |
|
|
- |
|
|
|
- |
|
|
|
(60,234 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit from Manufacturing Activities |
|
|
77 |
|
|
|
5,323 |
|
|
|
(85 |
) |
|
|
124 |
|
|
|
5,439 |
|
|
|
18,807 |
|
|
|
- |
|
|
|
- |
|
|
|
24,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of agricultural produce and biological assets |
|
|
21,752 |
|
|
|
9 |
|
|
|
7,977 |
|
|
|
- |
|
|
|
29,738 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
29,738 |
|
Cost of agricultural produce sold and direct agricultural selling expenses |
|
|
(21,752 |
) |
|
|
(9 |
) |
|
|
(7,977 |
) |
|
|
- |
|
|
|
(29,738 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(29,738 |
) |
Initial recognition and changes in fair value of biological assets and agricultural
produce |
|
|
9,004 |
|
|
|
4,717 |
|
|
|
1,955 |
|
|
|
(1 |
) |
|
|
15,675 |
|
|
|
7,991 |
|
|
|
- |
|
|
|
- |
|
|
|
23,666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in net realizable value of agricultural produce after harvest |
|
|
(162 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(162 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(162 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit / (loss) from Agricultural Activities |
|
|
8,842 |
|
|
|
4,717 |
|
|
|
1,955 |
|
|
|
(1 |
) |
|
|
15,513 |
|
|
|
7,991 |
|
|
|
- |
|
|
|
- |
|
|
|
23,504 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin on Manufacturing and Agricultural Activities
Before Operating Expenses |
|
|
8,919 |
|
|
|
10,040 |
|
|
|
1,870 |
|
|
|
123 |
|
|
|
20,952 |
|
|
|
26,798 |
|
|
|
- |
|
|
|
- |
|
|
|
47,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
|
(1,403 |
) |
|
|
(1,087 |
) |
|
|
(370 |
) |
|
|
(19 |
) |
|
|
(2,879 |
) |
|
|
(4,421 |
) |
|
|
- |
|
|
|
(4,718 |
) |
|
|
(12,018 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling expenses |
|
|
(802 |
) |
|
|
(4,291 |
) |
|
|
(165 |
) |
|
|
(7 |
) |
|
|
(5,265 |
) |
|
|
(7,506 |
) |
|
|
- |
|
|
|
(484 |
) |
|
|
(13,255 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating (loss)/income, net |
|
|
8,962 |
|
|
|
479 |
|
|
|
(28 |
) |
|
|
2 |
|
|
|
9,415 |
|
|
|
12,205 |
|
|
|
- |
|
|
|
5 |
|
|
|
21,625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of loss of joint ventures |
|
|
(878 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(878 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(878 |
) |
Profit / (loss) from Operations Before Financing and Taxation |
|
|
14,798 |
|
|
|
5,141 |
|
|
|
1,307 |
|
|
|
99 |
|
|
|
21,345 |
|
|
|
27,076 |
|
|
|
- |
|
|
|
(5,197 |
) |
|
|
43,224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
(493 |
) |
|
|
(795 |
) |
|
|
(380 |
) |
|
|
(78 |
) |
|
|
(1,746 |
) |
|
|
(3,131 |
) |
|
|
- |
|
|
|
- |
|
|
|
(4,877 |
) |
Initial recognition and changes in fair value of biological assets (unrealized) |
|
|
4,139 |
|
|
|
40 |
|
|
|
- |
|
|
|
(1 |
) |
|
|
4,178 |
|
|
|
12,281 |
|
|
|
- |
|
|
|
- |
|
|
|
16,459 |
|
Initial recognition and changes in fair value of agricultural produce (unrealized) |
|
|
3,817 |
|
|
|
3,084 |
|
|
|
- |
|
|
|
- |
|
|
|
6,901 |
|
|
|
(3,295 |
) |
|
|
- |
|
|
|
- |
|
|
|
3,606 |
|
Initial recognition and changes in fair value of biological assets and agricultural
produce (realized) |
|
|
1,048 |
|
|
|
1,593 |
|
|
|
1,955 |
|
|
|
- |
|
|
|
4,596 |
|
|
|
(995 |
) |
|
|
- |
|
|
|
- |
|
|
|
3,601 |
|
Changes in net realizable value of agricultural produce after harvest (unrealized) |
|
|
(157 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(157 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(157 |
) |
Changes in net realizable value of agricultural produce after harvest (realized) |
|
|
(5 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(5 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
113,015 |
|
|
|
45,833 |
|
|
|
15,229 |
|
|
|
13,538 |
|
|
|
187,615 |
|
|
|
523,835 |
|
|
|
- |
|
|
|
- |
|
|
|
711,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment property |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6,470 |
|
|
|
6,470 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
6,993 |
|
|
|
3,129 |
|
|
|
- |
|
|
|
608 |
|
|
|
10,730 |
|
|
|
7,541 |
|
|
|
- |
|
|
|
- |
|
|
|
18,271 |
|
Biological assets |
|
|
43,460 |
|
|
|
3,834 |
|
|
|
9,126 |
|
|
|
1,872 |
|
|
|
58,292 |
|
|
|
251,243 |
|
|
|
- |
|
|
|
- |
|
|
|
309,535 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in joint ventures |
|
|
1,839 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,839 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,839 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories |
|
|
30,489 |
|
|
|
35,231 |
|
|
|
2,370 |
|
|
|
- |
|
|
|
68,090 |
|
|
|
29,150 |
|
|
|
- |
|
|
|
- |
|
|
|
97,240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total segment assets |
|
|
195,796 |
|
|
|
88,027 |
|
|
|
26,725 |
|
|
|
22,488 |
|
|
|
333,036 |
|
|
|
811,769 |
|
|
|
- |
|
|
|
- |
|
|
|
1,144,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
|
|
70,123 |
|
|
|
30,229 |
|
|
|
7,754 |
|
|
|
- |
|
|
|
108,106 |
|
|
|
669,731 |
|
|
|
- |
|
|
|
- |
|
|
|
777,837 |
|
Total segment liabilities |
|
|
70,123 |
|
|
|
30,229 |
|
|
|
7,754 |
|
|
|
- |
|
|
|
108,106 |
|
|
|
669,731 |
|
|
|
- |
|
|
|
- |
|
|
|
777,837 |
|
The accompanying notes are an integral part of these condensed
consolidated interim financial statements.
Adecoagro
S.A.
Notes to the Condensed
Consolidated Interim Financial Statements (continued)
(All amounts
in US$ thousands, except shares and per share data and as otherwise indicated)
5. |
Segment information (continued) |
Segment analysis for
the three-month period ended March 31, 2014 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Farming |
|
|
Sugar,
Ethanol
and
Energy |
|
|
Land
Transformation |
|
|
Corporate |
|
|
Total |
|
|
|
Crops |
|
|
Rice |
|
|
Dairy |
|
|
All
Other
Segments |
|
|
Farming
subtotal |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of manufactured products and services rendered |
|
|
84 |
|
|
|
15,340 |
|
|
|
- |
|
|
|
342 |
|
|
|
15,766 |
|
|
|
53,045 |
|
|
|
- |
|
|
|
- |
|
|
|
68,811 |
|
Cost of manufactured products sold and services rendered |
|
|
- |
|
|
|
(11,767 |
) |
|
|
- |
|
|
|
(18 |
) |
|
|
(11,785 |
) |
|
|
(34,555 |
) |
|
|
- |
|
|
|
- |
|
|
|
(46,340 |
) |
Gross Profit from Manufacturing Activities |
|
|
84 |
|
|
|
3,573 |
|
|
|
- |
|
|
|
324 |
|
|
|
3,981 |
|
|
|
18,490 |
|
|
|
- |
|
|
|
- |
|
|
|
22,471 |
|
Sales of agricultural produce and biological assets |
|
|
22,097 |
|
|
|
1,146 |
|
|
|
7,075 |
|
|
|
- |
|
|
|
30,318 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
30,318 |
|
Cost of agricultural produce sold and direct agricultural selling expenses |
|
|
(22,097 |
) |
|
|
(1,146 |
) |
|
|
(7,075 |
) |
|
|
- |
|
|
|
(30,318 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(30,318 |
) |
Initial recognition and changes in fair value of biological assets and agricultural
produce |
|
|
34,089 |
|
|
|
12,515 |
|
|
|
1,932 |
|
|
|
(278 |
) |
|
|
48,258 |
|
|
|
(9,313 |
) |
|
|
- |
|
|
|
- |
|
|
|
38,945 |
|
Changes in net realizable value of agricultural produce after harvest |
|
|
861 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
861 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
861 |
|
Gross Profit / (loss) from Agricultural Activities |
|
|
34,950 |
|
|
|
12,515 |
|
|
|
1,932 |
|
|
|
(278 |
) |
|
|
49,119 |
|
|
|
(9,313 |
) |
|
|
- |
|
|
|
- |
|
|
|
39,806 |
|
Margin on Manufacturing and Agricultural Activities Before Operating
Expenses |
|
|
35,034 |
|
|
|
16,088 |
|
|
|
1,932 |
|
|
|
46 |
|
|
|
53,100 |
|
|
|
9,177 |
|
|
|
- |
|
|
|
- |
|
|
|
62,277 |
|
General and administrative expenses |
|
|
(980 |
) |
|
|
(812 |
) |
|
|
(394 |
) |
|
|
(35 |
) |
|
|
(2,221 |
) |
|
|
(3,710 |
) |
|
|
- |
|
|
|
(4,849 |
) |
|
|
(10,780 |
) |
Selling expenses |
|
|
(722 |
) |
|
|
(3,383 |
) |
|
|
(155 |
) |
|
|
(4 |
) |
|
|
(4,264 |
) |
|
|
(7,155 |
) |
|
|
- |
|
|
|
(217 |
) |
|
|
(11,636 |
) |
Other operating (loss)/income, net |
|
|
(12,503 |
) |
|
|
183 |
|
|
|
19 |
|
|
|
(1 |
) |
|
|
(12,302 |
) |
|
|
(1,366 |
) |
|
|
- |
|
|
|
98 |
|
|
|
(13,570 |
) |
Share of loss of joint ventures |
|
|
(225 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(225 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(225 |
) |
Profit / (loss) from Operations Before Financing and Taxation |
|
|
20,604 |
|
|
|
12,076 |
|
|
|
1,402 |
|
|
|
6 |
|
|
|
34,088 |
|
|
|
(3,054 |
) |
|
|
- |
|
|
|
(4,968 |
) |
|
|
26,066 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit from discontinued operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Depreciation and amortization |
|
|
(446 |
) |
|
|
(856 |
) |
|
|
(394 |
) |
|
|
(104 |
) |
|
|
(1,800 |
) |
|
|
(3,487 |
) |
|
|
- |
|
|
|
- |
|
|
|
(5,287 |
) |
Initial recognition and changes in fair value of biological assets (unrealized) |
|
|
25,270 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
25,270 |
|
|
|
(3,379 |
) |
|
|
- |
|
|
|
- |
|
|
|
21,891 |
|
Initial recognition and changes in fair value of agricultural produce (unrealized) |
|
|
4,085 |
|
|
|
10,272 |
|
|
|
- |
|
|
|
- |
|
|
|
14,357 |
|
|
|
(7,461 |
) |
|
|
- |
|
|
|
- |
|
|
|
6,896 |
|
Initial recognition and changes in fair value of biological assets and agricultural
produce (realized) |
|
|
4,734 |
|
|
|
2,243 |
|
|
|
1,932 |
|
|
|
(278 |
) |
|
|
8,631 |
|
|
|
1,527 |
|
|
|
- |
|
|
|
- |
|
|
|
10,158 |
|
Changes in net realizable value of agricultural produce after harvest (unrealized) |
|
|
(191 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(191 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(191 |
) |
Changes in net realizable value of agricultural produce after harvest (realized) |
|
|
1,052 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,052 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,052 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
133,395 |
|
|
|
45,462 |
|
|
|
16,664 |
|
|
|
10,229 |
|
|
|
205,750 |
|
|
|
650,254 |
|
|
|
- |
|
|
|
- |
|
|
|
856,004 |
|
Investment property |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8,269 |
|
|
|
8,269 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8,269 |
|
Goodwill |
|
|
8,115 |
|
|
|
3,450 |
|
|
|
- |
|
|
|
1,322 |
|
|
|
12,887 |
|
|
|
9,641 |
|
|
|
- |
|
|
|
- |
|
|
|
22,528 |
|
Biological assets |
|
|
66,882 |
|
|
|
2,697 |
|
|
|
8,075 |
|
|
|
2,100 |
|
|
|
79,754 |
|
|
|
244,966 |
|
|
|
- |
|
|
|
- |
|
|
|
324,720 |
|
Investment in joint ventures |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,713 |
|
|
|
3,713 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,713 |
|
Inventories |
|
|
28,054 |
|
|
|
44,894 |
|
|
|
1,964 |
|
|
|
220 |
|
|
|
75,132 |
|
|
|
32,232 |
|
|
|
- |
|
|
|
- |
|
|
|
107,364 |
|
Total segment assets |
|
|
236,446 |
|
|
|
96,503 |
|
|
|
26,703 |
|
|
|
25,853 |
|
|
|
385,505 |
|
|
|
937,093 |
|
|
|
- |
|
|
|
- |
|
|
|
1,322,598 |
|
Borrowings |
|
|
79,409 |
|
|
|
49,559 |
|
|
|
12,390 |
|
|
|
- |
|
|
|
141,358 |
|
|
|
648,740 |
|
|
|
- |
|
|
|
- |
|
|
|
790,098 |
|
Total segment liabilities |
|
|
79,409 |
|
|
|
49,559 |
|
|
|
12,390 |
|
|
|
- |
|
|
|
141,358 |
|
|
|
648,740 |
|
|
|
- |
|
|
|
- |
|
|
|
790,098 |
|
The accompanying notes are an integral part of these condensed
consolidated interim financial statements.
Adecoagro
S.A.
Notes to the Condensed
Consolidated Interim Financial Statements (continued)
(All amounts
in US$ thousands, except shares and per share data and as otherwise indicated)
6. |
Property, plant and equipment |
Changes in the Groups
property, plant and equipment in the three-month periods ended March 31, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Farmlands |
|
|
Farmland
improvements |
|
|
Buildings
and facilities |
|
|
Machinery,
equipment, furniture and
fittings |
|
|
Computer
equipment |
|
|
Vehicles |
|
|
Work
in progress |
|
|
Total |
|
Three-month period ended March 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opening net book amount |
|
|
216,843 |
|
|
|
8,852 |
|
|
|
206,462 |
|
|
|
297,910 |
|
|
|
1,690 |
|
|
|
1,184 |
|
|
|
57,579 |
|
|
|
790,520 |
|
Exchange differences |
|
|
(26,152 |
) |
|
|
(1,612 |
) |
|
|
222 |
|
|
|
7,440 |
|
|
|
34 |
|
|
|
(203 |
) |
|
|
1,482 |
|
|
|
(18,789 |
) |
Additions |
|
|
- |
|
|
|
1 |
|
|
|
11,173 |
|
|
|
39,225 |
|
|
|
617 |
|
|
|
74 |
|
|
|
38,138 |
|
|
|
89,228 |
|
Transfers |
|
|
- |
|
|
|
- |
|
|
|
4,434 |
|
|
|
1,308 |
|
|
|
- |
|
|
|
- |
|
|
|
(5,742 |
) |
|
|
- |
|
Disposals |
|
|
- |
|
|
|
- |
|
|
|
(7 |
) |
|
|
(135 |
) |
|
|
(3 |
) |
|
|
- |
|
|
|
- |
|
|
|
(145 |
) |
Reclassification to non-income tax credits (*) |
|
|
- |
|
|
|
- |
|
|
|
(76 |
) |
|
|
(217 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(293 |
) |
Depreciation (Note 22) |
|
|
- |
|
|
|
(439 |
) |
|
|
(1,122 |
) |
|
|
(2,826 |
) |
|
|
(40 |
) |
|
|
(90 |
) |
|
|
- |
|
|
|
(4,517 |
) |
Closing net book amount |
|
|
190,691 |
|
|
|
6,802 |
|
|
|
221,086 |
|
|
|
342,705 |
|
|
|
2,298 |
|
|
|
965 |
|
|
|
91,457 |
|
|
|
856,004 |
|
At March 31, 2014 (unaudited) Cost |
|
|
190,691 |
|
|
|
14,135 |
|
|
|
290,239 |
|
|
|
546,268 |
|
|
|
6,022 |
|
|
|
4,216 |
|
|
|
91,457 |
|
|
|
1,143,028 |
|
Accumulated depreciation |
|
|
- |
|
|
|
(7,333 |
) |
|
|
(69,153 |
) |
|
|
(203,563 |
) |
|
|
(3,724 |
) |
|
|
(3,251 |
) |
|
|
- |
|
|
|
(287,024 |
) |
Net book amount |
|
|
190,691 |
|
|
|
6,802 |
|
|
|
221,086 |
|
|
|
342,705 |
|
|
|
2,298 |
|
|
|
965 |
|
|
|
91,457 |
|
|
|
856,004 |
|
Three-month period ended March 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opening net book amount |
|
|
174,420 |
|
|
|
5,401 |
|
|
|
194,771 |
|
|
|
277,586 |
|
|
|
3,371 |
|
|
|
1,180 |
|
|
|
120,176 |
|
|
|
776,905 |
|
Exchange differences |
|
|
(12,771 |
) |
|
|
(170 |
) |
|
|
(31,096 |
) |
|
|
(49,669 |
) |
|
|
(544 |
) |
|
|
(50 |
) |
|
|
(19,339 |
) |
|
|
(113,639 |
) |
Additions |
|
|
- |
|
|
|
- |
|
|
|
6,610 |
|
|
|
28,403 |
|
|
|
302 |
|
|
|
799 |
|
|
|
18,104 |
|
|
|
54,218 |
|
Transfers |
|
|
- |
|
|
|
83 |
|
|
|
791 |
|
|
|
2,406 |
|
|
|
44 |
|
|
|
- |
|
|
|
(3,324 |
) |
|
|
- |
|
Disposals |
|
|
- |
|
|
|
- |
|
|
|
(168 |
) |
|
|
(174 |
) |
|
|
(2 |
) |
|
|
(7 |
) |
|
|
- |
|
|
|
(351 |
) |
Reclassification to non-income tax credits (*) |
|
|
- |
|
|
|
- |
|
|
|
(46 |
) |
|
|
(432 |
) |
|
|
- |
|
|
|
- |
|
|
|
(463 |
) |
|
|
(941 |
) |
Depreciation (Note 22) |
|
|
- |
|
|
|
(338 |
) |
|
|
(1,652 |
) |
|
|
(2,389 |
) |
|
|
(241 |
) |
|
|
(122 |
) |
|
|
- |
|
|
|
(4,742 |
) |
Closing net book amount |
|
|
161,649 |
|
|
|
4,976 |
|
|
|
169,210 |
|
|
|
255,731 |
|
|
|
2,930 |
|
|
|
1,800 |
|
|
|
115,154 |
|
|
|
711,450 |
|
At March 31, 2015 (unaudited) Cost |
|
|
161,649 |
|
|
|
12,647 |
|
|
|
240,015 |
|
|
|
461,683 |
|
|
|
6,895 |
|
|
|
5,173 |
|
|
|
115,154 |
|
|
|
1,003,216 |
|
Accumulated depreciation |
|
|
- |
|
|
|
(7,671 |
) |
|
|
(70,805 |
) |
|
|
(205,952 |
) |
|
|
(3,965 |
) |
|
|
(3,373 |
) |
|
|
0 |
|
|
|
(291,766 |
) |
Net book amount |
|
|
161,649 |
|
|
|
4,976 |
|
|
|
169,210 |
|
|
|
255,731 |
|
|
|
2,930 |
|
|
|
1,800 |
|
|
|
115,154 |
|
|
|
711,450 |
|
(*)
Brazilian federal tax law allows entities to take a percentage of the total cost of the assets purchased as a tax credit. As of
March 31, 2015, ICMS tax credits were reclassified to trade and other receivables.
The accompanying notes are an integral part of these
condensed consolidated interim financial statements.
Adecoagro
S.A.
Notes to the Condensed
Consolidated Interim Financial Statements (continued)
(All amounts
in US$ thousands, except shares and per share data and as otherwise indicated)
6. |
Property, plant and equipment (continued) |
An amount of US$ 3,322
and US$ 2,937 of depreciation are included in Cost of manufactured products sold and services rendered for the three-month
periods ended March 31, 2015 and 2014, respectively. An amount US$ 1,349 and US$ 1,437 of depreciation are included in General
and administrative expenses for the three-month periods ended March 31, 2015 and 2014, respectively. An amount of US$ 206
and US$ 143 of depreciation are included in Selling expenses for the three-month periods ended March 31, 2015 and
2014, respectively
As of March 31, 2015,
borrowing costs of US$ 2,728 (March 31, 2014: US$ 1,137) were capitalized as components of the cost of acquisition or construction
of qualifying assets.
Certain of the Groups
assets have been pledged as collateral to secure the Groups borrowings and other payables. The net book value of the pledged
assets amounts to US$ 483,337 as of March 31, 2015.
As of March 31,
2015 included within property, plant and equipment balances are US$ 516 related to the net book value of assets under finance leases.
Changes in the Groups
investment property in the three-month periods ended March 31, 2015 and 2014 were as follows:
|
|
March
31, 2015 |
|
|
March
31, 2014 |
|
|
|
(unaudited) |
|
Beginning of the period |
|
|
6,675 |
|
|
|
10,147 |
|
Exchange differences |
|
|
(205 |
) |
|
|
(1,878 |
) |
End of the period |
|
|
6,470 |
|
|
|
8,269 |
|
|
|
|
|
|
|
|
|
|
Cost |
|
|
6,470 |
|
|
|
8,269 |
|
Accumulated depreciation |
|
|
- |
|
|
|
- |
|
Net book amount |
|
|
6,470 |
|
|
|
8,269 |
|
The following amounts
have been recognized in the statement of income in the line Sales of manufactured products and services rendered:
|
|
March
31, 2015 |
|
|
March
31, 2014 |
|
|
|
(unaudited) |
|
Rental income |
|
|
310 |
|
|
|
340 |
|
As of March 31, 2015,
the fair value of investment property was US$ 48 million (2014: US$ 58 million).
The accompanying notes are an integral part of these condensed consolidated
interim financial statements.
Adecoagro
S.A.
Notes to the Condensed
Consolidated Interim Financial Statements (continued)
(All amounts
in US$ thousands, except shares and per share data and as otherwise indicated)
Changes in the Groups
intangible assets in the three-month periods ended March 31, 2015 and 2014 were as follows:
|
|
Goodwill |
|
|
Trademarks |
|
|
Software |
|
|
Others |
|
Total |
|
Three-month period ended March 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opening net book amount |
|
|
24,869 |
|
|
|
1,129 |
|
|
|
1,343 |
|
|
|
- |
|
|
|
27,341 |
|
Exchange differences |
|
|
(2,341 |
) |
|
|
(14 |
) |
|
|
(112 |
) |
|
|
- |
|
|
|
(2,467 |
) |
Additions |
|
|
- |
|
|
|
- |
|
|
|
238 |
|
|
|
- |
|
|
|
238 |
|
Amortization charge (i) (Note 22) |
|
|
- |
|
|
|
(35 |
) |
|
|
(66 |
) |
|
|
- |
|
|
|
(101 |
) |
Closing net book amount |
|
|
22,528 |
|
|
|
1,080 |
|
|
|
1,403 |
|
|
|
- |
|
|
|
25,011 |
|
At March 31,2014 (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost |
|
|
22,528 |
|
|
|
2,512 |
|
|
|
2,378 |
|
|
|
129 |
|
|
|
27,547 |
|
Accumulated amortization |
|
|
- |
|
|
|
(1,432 |
) |
|
|
(975 |
) |
|
|
(129 |
) |
|
|
(2,536 |
) |
Net book amount |
|
|
22,528 |
|
|
|
1,080 |
|
|
|
1,403 |
|
|
|
- |
|
|
|
25,011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-month period ended March 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opening net book amount |
|
|
20,172 |
|
|
|
959 |
|
|
|
2,634 |
|
|
|
13 |
|
|
|
23,778 |
|
Exchange differences |
|
|
(1,901 |
) |
|
|
(4 |
) |
|
|
(375 |
) |
|
|
(2 |
) |
|
|
(2,282 |
) |
Additions |
|
|
- |
|
|
|
- |
|
|
|
195 |
|
|
|
- |
|
|
|
195 |
|
Amortization charge (ii) (Note 22) |
|
|
- |
|
|
|
- |
|
|
|
(133 |
) |
|
|
(2 |
) |
|
|
(135 |
) |
Closing net book amount |
|
|
18,271 |
|
|
|
955 |
|
|
|
2,321 |
|
|
|
9 |
|
|
|
21,556 |
|
At March 31, 2015 (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost |
|
|
18,271 |
|
|
|
2,494 |
|
|
|
3,730 |
|
|
|
140 |
|
|
|
24,635 |
|
Accumulated amortization |
|
|
|
|
|
|
(1,539 |
) |
|
|
(1,409 |
) |
|
|
(131 |
) |
|
|
(3,079 |
) |
Net book amount |
|
|
18,271 |
|
|
|
955 |
|
|
|
2,321 |
|
|
|
9 |
|
|
|
21,556 |
|
(i)
For the three-month period ended March 31,2014 an amount of US$ 66 and US$ 35 of amortization charges are included in General
and administrative expenses and Selling expenses, respectively. There were no impairment charges for any
of the periods presented.
(ii)
For the three-month period ended March 31, 2015 an amount of US$ 133 and US$ 2 of amortization charges are included in General
and administrative expenses and Selling expenses, respectively. There were no impairment charges for any
of the periods presented.
The Group tests annually
whether goodwill has suffered any impairment. The last impairment test of goodwill was performed as of September 30, 2014.
The accompanying notes are an integral part of these condensed consolidated
interim financial statements.
Adecoagro
S.A.
Notes to the Condensed
Consolidated Interim Financial Statements (continued)
(All amounts
in US$ thousands, except shares and per share data and as otherwise indicated)
Changes in the Groups
biological assets in the three-month periods ended March 31, 2015 and 2014 were as follows:
|
|
March
31,
2015 |
|
|
March
31,
2014 |
|
|
|
(unaudited) |
|
Beginning of the period |
|
|
341,232 |
|
|
|
292,144 |
|
Increase due to purchases |
|
|
- |
|
|
|
526 |
|
Initial recognition and changes in fair value of biological assets (i) |
|
|
23,666 |
|
|
|
38,945 |
|
Decrease due to harvest |
|
|
(64,223 |
) |
|
|
(71,509 |
) |
Decrease due to disposals |
|
|
(721 |
) |
|
|
(455 |
) |
Decrease due to sales of agricultural produce |
|
|
(7,256 |
) |
|
|
(6,620 |
) |
Costs incurred during the period |
|
|
67,586 |
|
|
|
74,697 |
|
Exchange differences |
|
|
(50,749 |
) |
|
|
(3,008 |
) |
End
of the period |
|
|
309,535 |
|
|
|
324,720 |
|
(i)
Biological asset with a production cycle of more than one year (that is, sugarcane, coffee, dairy and cattle) generated ‘Initial
recognition and changes in fair value of biological assets amounting to US$ 9,945 loss for the three-month period ended
March 31, 2015 (2014: US$ (7,659) loss). In 2015, an amount of US$ 31,431 gain (2014: US$ 31,660 gain) was attributable to price
changes, and an amount of US$ (21,486) loss (2014: US$ (39,319) loss) was mainly attributable to physical changes.
Biological assets as of
March 31, 2015 and December 31, 2014 were as follows:
|
|
March
31,
2015 |
|
|
December
31,
2014 |
|
|
|
(unaudited) |
|
|
|
|
Non-current |
|
|
|
|
|
|
Cattle for dairy production |
|
|
8,684 |
|
|
|
8,856 |
|
Other cattle |
|
|
24 |
|
|
|
25 |
|
Sown land – coffee |
|
|
1,872 |
|
|
|
2,193 |
|
Sown land – sugarcane |
|
|
251,243 |
|
|
|
274,970 |
|
|
|
|
261,823 |
|
|
|
286,044 |
|
Current |
|
|
|
|
|
|
|
|
Other cattle |
|
|
418 |
|
|
|
301 |
|
Sown land – crops |
|
|
43,460 |
|
|
|
31,012 |
|
Sown land – rice |
|
|
3,834 |
|
|
|
23,875 |
|
|
|
|
47,712 |
|
|
|
55,188 |
|
Total biological assets |
|
|
309,535 |
|
|
|
341,232 |
|
The accompanying notes are an integral part of these condensed
consolidated interim financial statements.
Adecoagro
S.A.
Notes to the Condensed
Consolidated Interim Financial Statements (continued)
(All amounts
in US$ thousands, except shares and per share data and as otherwise indicated)
10. |
Financial instruments |
As of March 31, 2015,
the financial instruments recognized at fair value on the statement of financial position comprise derivative financial instruments.
In the case of Level
1, valuation is based on unadjusted quoted prices in active markets for identical financial assets that the Group can refer to
at the date of the statement of financial position. A market is deemed active if transactions take place with sufficient frequency
and in sufficient quantity for price information to be available on an ongoing basis. Since a quoted price in an active market
is the most reliable indicator of fair value, this should always be used if available. The financial instruments the Group has
allocated to this level mainly comprise crop futures and options traded on the stock market. In the case of securities, the Group
allocates them to this level when either a stock market price is available or prices are provided by a price quotation on the basis
of actual market transactions.
Derivatives not traded
on the stock market allocated to Level 2 are valued using models based on observable market data. For this, the Group uses inputs
directly or indirectly observable in the market, other than quoted prices. If the financial instrument concerned has a fixed contract
period, the inputs used for valuation must be observable for the whole of this period. The financial instruments the Group has
allocated to this level mainly comprise interest-rate swaps and foreign-currency interest-rate swaps.
In the case of Level
3, the Group uses valuation techniques not based on inputs observable in the market. This is only permissible insofar as no observable
market data are available. The inputs used reflect the Groups assumptions regarding the factors, which market players would
consider in their pricing. The Group uses the best available information for this, including internal company data. The Group does
not have financial instruments allocated to this level for any of the periods presented.
The following tables
present the Groups financial assets and financial liabilities that are measured at fair value as of March 31, 2015 and their
allocation to the fair value hierarchy:
|
|
2015 |
|
|
|
Level
1 |
|
|
Level
2 |
|
|
Level
3 |
|
|
Total |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments |
|
|
15,864 |
|
|
|
3,034 |
|
|
|
- |
|
|
|
18,898 |
|
Total assets |
|
|
15,864 |
|
|
|
3,034 |
|
|
|
- |
|
|
|
18,898 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments |
|
|
(758 |
) |
|
|
(14,322 |
) |
|
|
- |
|
|
|
(15,080 |
) |
Total liabilities |
|
|
(758 |
) |
|
|
(14,322 |
) |
|
|
- |
|
|
|
(15,080 |
) |
The accompanying notes are an integral part
of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Notes to the Condensed
Consolidated Interim Financial Statements (continued)
(All amounts
in US$ thousands, except shares and per share data and as otherwise indicated)
10. |
Financial instruments (continued) |
When no quoted prices
in an active market are available, fair values (particularly with derivatives) are based on recognized valuation methods. The Group
uses a range of valuation models for this purpose, details of which may be obtained from the following table:
Class |
|
|
Pricing Method |
|
Parameters |
|
|
Pricing
Model |
|
|
Level |
|
|
Total |
|
Futures |
|
|
Quoted price |
|
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
13,664 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options |
|
|
Quoted price |
|
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
1,442 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options/OTC |
|
|
Quoted price |
|
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
1,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign-currency interest-rate swaps |
|
|
Theoretical price |
|
|
- |
|
|
|
- |
|
|
|
2 |
|
|
|
1,666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-rate swaps |
|
|
Theoretical price |
|
Swap curve;
Money market interest-rate curve |
|
|
Present value method |
|
|
|
2 |
|
|
|
(14,322 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,818 |
|
The accompanying notes are an integral part of these condensed
consolidated interim financial statements.
Adecoagro
S.A.
Notes to the Condensed
Consolidated Interim Financial Statements (continued)
(All amounts
in US$ thousands, except shares and per share data and as otherwise indicated)
11. |
Trade and other receivables, net |
|
|
March
31, 2015 |
|
|
December
31,
2014 |
|
|
|
(unaudited) |
|
|
|
|
Non current |
|
|
|
|
|
|
Trade receivables |
|
|
3,169 |
|
|
|
3,528 |
|
Trade receivables – net |
|
|
3,169 |
|
|
|
3,528 |
|
Advances to suppliers |
|
|
10,028 |
|
|
|
12,149 |
|
Income tax credits |
|
|
7,337 |
|
|
|
6,759 |
|
Non-income tax credits (i) |
|
|
17,293 |
|
|
|
18,609 |
|
Judicial deposits |
|
|
2,077 |
|
|
|
2,545 |
|
Receivable from disposal of subsidiary |
|
|
3,382 |
|
|
|
3,997 |
|
Other receivables |
|
|
1,131 |
|
|
|
3,003 |
|
Non current portion |
|
|
44,417 |
|
|
|
50,590 |
|
Current |
|
|
|
|
|
|
|
|
Trade receivables |
|
|
36,344 |
|
|
|
65,059 |
|
Receivables from related parties (Note 27) |
|
|
1,089 |
|
|
|
258 |
|
Less: Allowance for trade receivables |
|
|
(497 |
) |
|
|
(527 |
) |
Trade receivables – net |
|
|
36,936 |
|
|
|
64,790 |
|
Prepaid expenses |
|
|
9,824 |
|
|
|
6,884 |
|
Advance to Suppliers |
|
|
17,383 |
|
|
|
11,717 |
|
Income tax credits |
|
|
5,977 |
|
|
|
6,492 |
|
Non-income tax credits (i) |
|
|
33,806 |
|
|
|
42,685 |
|
Cash collateral |
|
|
5,118 |
|
|
|
6,329 |
|
Receivable from disposal of subsidiary |
|
|
3,783 |
|
|
|
4,451 |
|
Other receivables |
|
|
17,170 |
|
|
|
21,178 |
|
Subtotal |
|
|
93,061 |
|
|
|
99,736 |
|
Current portion |
|
|
129,997 |
|
|
|
164,526 |
|
Total trade and other receivables, net |
|
|
174,414 |
|
|
|
215,116 |
|
(i)
Includes US$ 941for the three month period ended March 31, 2015 reclassified from property, plant and equipment (for the year
ended December 31, 2014: US$ 4,514).
The accompanying notes are an integral part of these condensed consolidated
interim financial statements.
Adecoagro
S.A.
Notes
to the Condensed Consolidated Interim Financial Statements (continued)
(All
amounts in US$ thousands, except shares and per share data and as otherwise indicated)
11. |
Trade and other receivables, net (continued) |
The
fair values of current trade and other receivables approximate their respective carrying amounts due to their short-term nature.
The fair values of non-current trade and other receivables approximate their carrying amount, as the impact of discounting is
not significant.
The
carrying amounts of the Groups trade and other receivables are denominated in the following currencies (expressed in US
dollars):
|
|
March
31,
2015 |
|
|
December
31,
2014 |
|
|
|
(unaudited) |
|
|
|
|
Currency |
|
|
|
|
|
|
US Dollar |
|
|
18,735 |
|
|
|
45,341 |
|
Argentine Peso |
|
|
51,311 |
|
|
|
49,876 |
|
Uruguayan Peso |
|
|
9,428 |
|
|
|
8,385 |
|
Brazilian
Reais |
|
|
94,940 |
|
|
|
111,514 |
|
|
|
|
174,414 |
|
|
|
215,116 |
|
As
of March 31, 2015 trade receivables of US$ 7,016 (December 31, 2014: US$ 4,224) were past due but not impaired. The ageing analysis
of these receivables indicates that 897 and 1,269 are over 6 months in March 31, 2015 and December 31, 2014, respectively.
The
creation and release of allowance for trade receivables have been included in ‘Selling expenses in the statement
of income. Amounts charged to the allowance account are generally written off, when there is no expectation of recovering additional
cash.
The
other classes within other receivables do not contain impaired assets.
The
maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable mentioned above.
|
|
March
31,
2015 |
|
|
December
31,
2014 |
|
|
|
(unaudited) |
|
|
|
|
Raw materials |
|
|
26,300 |
|
|
|
35,662 |
|
Finished goods |
|
|
69,518 |
|
|
|
65,562 |
|
Stocks held by third
parties |
|
|
1,325 |
|
|
|
3,395 |
|
Others |
|
|
97 |
|
|
|
300 |
|
|
|
|
97,240 |
|
|
|
104,919 |
|
The
cost of inventories recognized as expense are included in ‘Cost of manufactured products sold and services rendered
amounted to US$ 60,234 for the three-month period ended March 31, 2015. The cost of inventories recognized as expense
and included in ‘Cost of agricultural produce sold and direct agricultural selling expenses amounted to US$ 17,041
for the three-month period ended March 31, 2015.
The accompanying
notes are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Notes
to the Condensed Consolidated Interim Financial Statements (continued)
(All
amounts in US$ thousands, except shares and per share data and as otherwise indicated)
13. |
Cash and cash equivalents |
|
|
March
31,
2015 |
|
|
December
31,
2014 |
|
|
|
(unaudited) |
|
|
|
|
Cash at
bank and on hand |
|
|
139,518 |
|
|
|
104,132 |
|
Short-term
bank deposits |
|
|
58,761 |
|
|
|
9,663 |
|
|
|
|
198,279 |
|
|
|
113,795 |
|
14. |
Shareholder´s Contributions |
|
|
Number
of
shares (thousands) |
|
|
Share
capital and share premium |
|
At January
1, 2014 |
|
|
122,382 |
|
|
|
1,122,645 |
|
Employee share options
exercised (Note 15) |
|
|
- |
|
|
|
518 |
|
Purchase
of own shares |
|
|
- |
|
|
|
(10,424 |
) |
At
March 31,2014 |
|
|
122,382 |
|
|
|
1,112,739 |
|
|
|
|
|
|
|
|
|
|
At January 1, 2015 |
|
|
122,382 |
|
|
|
1,116,617 |
|
Employee
share options exercised (Note 15) |
|
|
- |
|
|
|
746 |
|
At
March 31, 2015 |
|
|
122,382 |
|
|
|
1,117,363 |
|
Share
Repurchase Program
On
September 24, 2013, the Board of Directors of the Company has authorized a share repurchase program for up to 5% of its outstanding
shares. The repurchase program has commenced on September 24, 2013 and will be reviewed by the Board of Directors after a 12-month
period: repurchases of shares under the program are made from time to time in open market transactions in compliance with the
trading conditions of Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended, and applicable rules and regulations.
The share repurchase program does not require Adecoagro to acquire any specific number or amount of shares and may be modified,
suspended, reinstated or terminated at any time in the Companys discretion and without prior notice. The size and the timing
of repurchases will depend upon market conditions, applicable legal requirements and other factors. On August 12, 2014 the Board
of directors decided to extend the program for a 12 month period.
The accompanying
notes are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Notes
to the Condensed Consolidated Interim Financial Statements (continued)
(All
amounts in US$ thousands, except shares and per share data and as otherwise indicated)
15. |
Equity-settled share-based payments |
The
Group has set a 2004 Incentive Option Plan and a 2007/2008 Equity Incentive Plan (collectively referred
to as Option Schemes) under which the Group grants equity-settled options to senior managers and selected employees
of the Group´s subsidiaries. Additionally, in 2010 the Group has set a Adecoagro Restricted Share and Restricted
Stock Unit Plan (referred to as Restricted Share Plan) under which the Group grants restricted shares, or
restricted stock units to senior and medium management and key employees of the Groups subsidiaries.
For
the three-month periods ended March 31, 2015 and 2014 the Group incurred US$ nil million for the both period, related to the options
granted under the Option Schemes.
Movements
in the number of equity-settled options outstanding and their related weighted average exercise prices under plans are as follows:
2004
Incentive Option Plan
|
|
March
31, 2015 |
|
|
March
31,2014 |
|
|
|
Average
exercise
price per
share |
|
|
Options
(thousands) |
|
|
Average
exercise
price per
share |
|
|
Options
(thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
At January
1 |
|
|
6.71 |
|
|
|
1,916 |
|
|
|
6.67 |
|
|
|
2,061 |
|
Exercised |
|
|
6.76 |
|
|
|
(94 |
) |
|
|
5.83 |
|
|
|
(79 |
) |
At
March 31 |
|
|
6.71 |
|
|
|
1,822 |
|
|
|
6.70 |
|
|
|
1,982 |
|
2007/2008
Equity Incentive Plan
|
|
March
31, 2015 |
|
|
March
31,2014 |
|
|
|
Average
exercise
price per
share |
|
|
Options
(thousands) |
|
|
Average
exercise
price per
share |
|
|
Options
(thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
At January
1 |
|
|
13.07 |
|
|
|
1,729 |
|
|
|
13.07 |
|
|
|
1,751 |
|
Forfeited |
|
|
- |
|
|
|
- |
|
|
|
13.40 |
|
|
|
(9 |
) |
At
March 31 |
|
|
13.07 |
|
|
|
1,729 |
|
|
|
13.07 |
|
|
|
1,742 |
|
The accompanying
notes are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Notes
to the Condensed Consolidated Interim Financial Statements (continued)
(All
amounts in US$ thousands, except shares and per share data and as otherwise indicated)
15. |
Equity-settled share-based payments
(continued) |
Options
outstanding under the plans have the following expiry date and exercise prices:
2004
Incentive Option Plan
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercise |
|
|
|
|
|
|
|
|
|
price
per |
|
|
Shares
(in thousands) |
|
Expiry
date (i): |
|
share |
|
|
March
31, 2015 |
|
|
March
31, 2014 |
|
May 1, 2024 |
|
|
5.83 |
|
|
|
570 |
|
|
|
597 |
|
May 1, 2025 |
|
|
5.83 |
|
|
|
517 |
|
|
|
553 |
|
May 1, 2026 |
|
|
5.83 |
|
|
|
104 |
|
|
|
153 |
|
February 16, 2026 |
|
|
7.11 |
|
|
|
103 |
|
|
|
110 |
|
October 1, 2026 |
|
|
8.62 |
|
|
|
529 |
|
|
|
569 |
|
|
(i) |
On May 2014, the Board of directors decided
to extend the expired date. |
2007/2008
Equity Incentive Plan
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercise |
|
|
|
|
|
|
|
|
|
price
per |
|
|
Shares
(in thousands) |
|
Expiry
date: |
|
share |
|
|
March
31, 2015 |
|
|
March
31, 2014 |
|
Dec 1, 2017 |
|
|
12.82 |
|
|
|
950 |
|
|
|
963 |
|
Jan 30, 2019 |
|
|
13.40 |
|
|
|
599 |
|
|
|
599 |
|
Nov 1, 2019 |
|
|
13.40 |
|
|
|
8 |
|
|
|
8 |
|
Jan 30, 2020 |
|
|
12.82 |
|
|
|
26 |
|
|
|
26 |
|
Jan 30, 2020 |
|
|
13.40 |
|
|
|
65 |
|
|
|
65 |
|
Jun 30, 2020 |
|
|
13.40 |
|
|
|
22 |
|
|
|
22 |
|
Sep 1, 2020 |
|
|
13.40 |
|
|
|
44 |
|
|
|
44 |
|
Sep 1, 2020 |
|
|
12.82 |
|
|
|
15 |
|
|
|
15 |
|
The
following table shows the exercisable shares at period end under the Adecoagro/ IFH 2004 Incentive Option Plan and the Adecoagro/
IFH 2007/ 2008 Equity Incentive Plan:
|
|
Exercisable
shares in
thousands |
|
March 31,
2015 |
|
|
3,552 |
|
March 31, 2014 |
|
|
3,704 |
|
The
accompanying notes are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Notes
to the Condensed Consolidated Interim Financial Statements (continued)
(All
amounts in US$ thousands, except shares and per share data and as otherwise indicated)
15. |
Equity-settled share-based payments
(continued) |
|
(b) |
Restricted Share and Restricted
Stock Unit Plan |
The
Restricted Share and Restricted Stock Unit Plan were effectively established in 2010 and amended in November 2011 and is administered
by the Compensation Committee of the Company. Awards under this plan vest over a 3-year period from the date of grant at 33% on
each anniversary of the grant date. Participants are entitled to receive one common share of the Company for each restricted share
or restricted unit issued. For the Restricted Share Plan there are no performance requirements for the delivery of common shares,
except that a participants employment with the Group must not have been terminated prior to the relevant vesting date.
If the participant ceases to be an employee for any reason, any unvested restricted share shall not be converted into common shares
and the participant shall cease for all purposes to be a shareholder with respect to such shares.
On
July 18, 2011, the Group issued and registered 427,293 restricted shares with a nominal value of US$ 1.5 which were granted under
the Restricted Share Plan. While the restricted shares are not vested, they are recognized in Other reserves. Once
they are vested, the reserve is reversed and a share premium is recognized. As of March 31, 2015, all the restricted shares were
vested.
The
restricted shares under the Restricted Share Plan were measured at fair value at the date of grant.
As
of March 31, 2015, the Group recognized compensation expense US$ 0.9 million related to the restricted shares granted under the
Restricted Share Plan (2014: US$ 0.8 million).
Key
grant-date fair value and other assumptions under the Restricted Share and Restricted Stock Unit Plan are detailed below:
Grant
Date |
|
Apr
1,
2012 |
|
|
May
15,
2012 |
|
|
Apr
1,
2013 |
|
|
May
15,
2013 |
|
|
Apr
1,
2014 |
|
|
May
15,
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair
value |
|
|
9.81 |
|
|
|
9.33 |
|
|
|
8.08 |
|
|
|
7.48 |
|
|
|
7.92 |
|
|
|
8.72 |
|
Possibility
of ceasing employment before vesting |
|
|
3 |
% |
|
|
0 |
% |
|
|
5 |
% |
|
|
0 |
% |
|
|
5 |
% |
|
|
0 |
% |
Movements
in the number of restricted shares outstanding under the Restricted Share and Restricted Stock Unit Plan are as follows:
|
|
Restricted
shares
(thousands) |
|
|
Restricted
stock
units
(thousands) |
|
|
Restricted
shares
(thousands) |
|
|
Restricted
stock
units
(thousands) |
|
|
|
2015 |
|
|
2015 |
|
|
2014 |
|
|
2014 |
|
At January
1 |
|
|
- |
|
|
|
861 |
|
|
|
110 |
|
|
|
699 |
|
Granted |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Forfeited |
|
|
- |
|
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(13 |
) |
Vested |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
At
March 31 |
|
|
- |
|
|
|
859 |
|
|
|
108 |
|
|
|
686 |
|
The
accompanying notes are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Notes
to the Condensed Consolidated Interim Financial Statements (continued)
(All
amounts in US$ thousands, except shares and per share data and as otherwise indicated)
16. |
Trade and other payables |
|
|
March
31,
2015 |
|
|
December
31,
2014 |
|
|
|
(unaudited) |
|
|
|
|
Non-current |
|
|
|
|
|
|
Payable
from acquisition of property, plant and equipment (i) |
|
|
2,084 |
|
|
|
2,084 |
|
Other
payables |
|
|
279 |
|
|
|
307 |
|
|
|
|
2,363 |
|
|
|
2,391 |
|
Current |
|
|
|
|
|
|
|
|
Trade payables |
|
|
58,490 |
|
|
|
70,269 |
|
Advances from customers |
|
|
3,582 |
|
|
|
5,636 |
|
Amounts due to related
parties (Note 27) |
|
|
19 |
|
|
|
- |
|
Taxes payable |
|
|
2,304 |
|
|
|
4,217 |
|
Escrows arising on business
combinations |
|
|
316 |
|
|
|
316 |
|
Other
payables |
|
|
973 |
|
|
|
2,662 |
|
|
|
|
65,684 |
|
|
|
83,100 |
|
Total
trade and other payables |
|
|
68,047 |
|
|
|
85,491 |
|
(i) |
These trades payable are mainly collateralized
by property, plant and equipment. |
The accompanying
notes are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Notes
to the Condensed Consolidated Interim Financial Statements (continued)
(All
amounts in US$ thousands, except shares and per share data and as otherwise indicated)
|
|
March
31,
2015 |
|
|
December
31,
2014 |
|
|
|
(unaudited) |
|
|
|
|
Non-current |
|
|
|
|
|
|
Votoratim |
|
|
15 |
|
|
|
434 |
|
ABC Brazil Loan |
|
|
3,570 |
|
|
|
3,571 |
|
Bradesco Loan (*) |
|
|
4,516 |
|
|
|
4,557 |
|
BNDES Loan Facility(*) |
|
|
133,492 |
|
|
|
163,009 |
|
IDB Facility (*) |
|
|
22,004 |
|
|
|
21,972 |
|
Ciudad de Buenos Aires
Loan |
|
|
11,429 |
|
|
|
11,389 |
|
Banco do Brazil Loan
Facility (*) |
|
|
54,568 |
|
|
|
68,653 |
|
Itaú BBA Facility
(*) |
|
|
25,002 |
|
|
|
30,654 |
|
ING/ABN/Bladex(*) |
|
|
22,667 |
|
|
|
28,000 |
|
Rabobank, Syndicated
Loan (*) |
|
|
62,727 |
|
|
|
71,562 |
|
ING Bank N,V, Syndicated
Loan (*) |
|
|
66,232 |
|
|
|
66,002 |
|
ING/Rabobank/ABN/Crédit
Agricole/HSBC/Caixa Geral/Galena(*) |
|
|
158,398 |
|
|
|
- |
|
Other bank borrowings |
|
|
19,891 |
|
|
|
21,224 |
|
Obligations
under finance leases |
|
|
185 |
|
|
|
293 |
|
|
|
|
584,696 |
|
|
|
491,324 |
|
Current |
|
|
|
|
|
|
Bank overdrafts |
|
|
10,217 |
|
|
|
7,789 |
|
BNDES Loan Facility
(*) |
|
|
23,055 |
|
|
|
27,430 |
|
IDB Facility (*) |
|
|
16,425 |
|
|
|
15,827 |
|
Ciudad de Buenos Aires
Loan |
|
|
5,963 |
|
|
|
2,947 |
|
Galicia Loan |
|
|
980 |
|
|
|
1,000 |
|
Banco do Brazil Loan
Facility (*) |
|
|
10,677 |
|
|
|
12,708 |
|
Rabobank Loan (*) |
|
|
34,687 |
|
|
|
38,665 |
|
ITAU (*) |
|
|
10,888 |
|
|
|
27,319 |
|
ABC Brazil Loan |
|
|
9,254 |
|
|
|
10,134 |
|
Bradesco Loan (*) |
|
|
4,106 |
|
|
|
4,086 |
|
Votoratim |
|
|
2,361 |
|
|
|
2,421 |
|
ING/ABN/Bladex(*) |
|
|
29 |
|
|
|
4 |
|
Rabobank, Syndicated
Loan (*) |
|
|
9,323 |
|
|
|
217 |
|
ING/HSBC/ICBC/BES/Bradesco/Hinduja/Bladex/BoC/Paschi(*) |
|
|
32,788 |
|
|
|
32,606 |
|
Other bank borrowings |
|
|
22,134 |
|
|
|
23,742 |
|
Obligations
under finance leases |
|
|
254 |
|
|
|
287 |
|
|
|
|
193,141 |
|
|
|
207,182 |
|
Total
borrowings |
|
|
777,837 |
|
|
|
698,506 |
|
(*) The
Group was in compliance with the related covenants under the respective loan agreements.
The accompanying
notes are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Notes
to the Condensed Consolidated Interim Financial Statements (continued)
(All
amounts in US$ thousands, except shares and per share data and as otherwise indicated)
17. |
Borrowings (continued) |
New
loan – ING Bank N.V. Syndicated Loan
In
January and February 2015, Adecoagro Vale do Ivinhema entered into a US$ 160.0 million loan with syndicate of banks, led by ING
Bank N.V. and Rabobank, due 2018. This syndicate loan bears an interest of LIBOR 3 months + 4.40% per annum. Certain covenants
are measured on a combined basis aggregating the borrowing subsidiaries and others are measured on an individual basis. Certain
covenants are measured on a combined basis aggregating the borrowing subsidiaries and others are measured on an individual basis.
Financial
ratios:
|
|
2014 |
|
|
2015 |
|
|
2016 |
|
Net
Bank Debt / EBITDA |
|
[<]
4,5 |
|
|
[<]
5 |
|
|
[<]
4,5 |
|
Solvency
Ratio |
|
[>]40% |
|
|
[>]40% |
|
|
[>]40% |
|
Interest
Coverage Ratio |
|
[<]
2 |
|
|
[<]
2 |
|
|
[<]
2 |
|
As
of March 31, 2015, total bank borrowings include collateralized liabilities of US$ 719,234 (December 31, 2014: US$ 640,034). These
loans are mainly collateralized by property, plant and equipment sugarcane plantations, sugar export contracts and shares of certain
subsidiaries of the Group.
The
maturity of the Groups borrowings (excluding obligations under finance leases) and the Groups exposure to fixed
and variable interest rates is as follows:
|
|
March
31,
2015 |
|
|
December
31,
2014 |
|
|
|
(unaudited) |
|
|
|
|
Fixed rate: |
|
|
|
|
|
|
Less than
1 year |
|
|
94,680 |
|
|
|
95,524 |
|
Between 1 and 2 years |
|
|
42,394 |
|
|
|
45,518 |
|
Between 2 and 3 years |
|
|
31,831 |
|
|
|
41,685 |
|
Between 3 and 4 years |
|
|
30,282 |
|
|
|
25,809 |
|
Between 4 and 5 years |
|
|
26,580 |
|
|
|
39,992 |
|
More
than 5 years |
|
|
59,704 |
|
|
|
87,219 |
|
|
|
|
285,471 |
|
|
|
335,747 |
|
Variable
rate: |
|
|
|
|
|
|
|
|
Less than 1 year |
|
|
98,207 |
|
|
|
111,371 |
|
Between 1 and 2 years |
|
|
173,344 |
|
|
|
130,426 |
|
Between 2 and 3 years |
|
|
133,418 |
|
|
|
80,199 |
|
Between 3 and 4 years |
|
|
63,158 |
|
|
|
13,154 |
|
Between 4 and 5 years |
|
|
6,323 |
|
|
|
7,346 |
|
More
than 5 years |
|
|
17,477 |
|
|
|
19,683 |
|
|
|
|
491,927 |
|
|
|
362,179 |
|
|
|
|
777,398 |
|
|
|
697,926 |
|
The
accompanying notes are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Notes
to the Condensed Consolidated Interim Financial Statements (continued)
(All
amounts in US$ thousands, except shares and per share data and as otherwise indicated)
17. |
Borrowings (continued) |
The
carrying amounts of the Groups borrowings are denominated in the following currencies (expressed in US dollars):
|
|
|
|
|
|
|
|
|
March
31,
2015 |
|
|
December
31,
2014 |
|
|
|
(unaudited) |
|
|
|
|
Currency |
|
|
|
|
|
|
US
Dollar |
|
|
480,669 |
|
|
|
320,638 |
|
Brazilian
Reais |
|
|
281,775 |
|
|
|
362,733 |
|
Argentine
Peso |
|
|
15,393 |
|
|
|
15,135 |
|
|
|
|
777,837 |
|
|
|
698,506 |
|
Taxes
on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.
|
|
|
|
|
|
|
|
|
March
31,
2015 |
|
|
March
31,
2014 |
|
|
|
(unaudited) |
|
Current
income tax |
|
|
(49 |
) |
|
|
(322 |
) |
Deferred
income tax |
|
|
(4,922 |
) |
|
|
(6,975 |
) |
Income
tax expense |
|
|
(4,971 |
) |
|
|
(7,297 |
) |
There
has been no change in the statutory tax rates in the countries where the Group operates since December 31, 2014.
Argentine
law includes a 10% withholding tax on dividend distributions made by Argentine companies to individuals and foreign beneficiaries.
As of March 31, 2015, the Company did not record any liability on retain earnings at their Argentine subsidiaries due to its dividend
policy which defines that the Company intends to retain any future earnings to finance operations and the expansion of their business
and does not intend to distribute or pay any cash dividends on our common shares in the foreseeable future.
The
gross movement on the deferred income tax account is as follows:
|
|
|
|
|
|
|
|
|
March
31,
2015 |
|
|
March
31,
2014 |
|
|
|
(unaudited) |
|
Beginning
of period asset/(liability) |
|
|
5,964 |
|
|
|
(9,255 |
) |
Exchange differences |
|
|
(7,305 |
) |
|
|
11,665 |
|
Tax charge relating
to cash flow hedge (i) |
|
|
21,658 |
|
|
|
2,448 |
|
Income
tax expense |
|
|
(4,922 |
) |
|
|
(6,975 |
) |
End
of period asset/(liability) |
|
|
15,395 |
|
|
|
(2,117 |
) |
(i) |
Relates to the gain or loss before income
tax of cash flow hedge recognized in other comprehensive income net of the amount reclassified from equity to profit and loss
amounting to U$S 464 gain for the three-month period ended March 31, 2015. |
The
accompanying notes are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Notes
to the Condensed Consolidated Interim Financial Statements (continued)
(All
amounts in US$ thousands, except shares and per share data and as otherwise indicated)
The
tax on the Groups profit before tax differs from the theoretical amount that would arise using the weighted average tax
rate applicable to profits of the consolidated entities as follows:
|
|
|
|
|
|
|
|
|
March
31,
2015 |
|
|
March
31,
2014 |
|
|
|
(unaudited) |
|
Tax
calculated at the tax rates applicable to profits in the respective countries |
|
|
(6,149) |
|
|
|
(4,634) |
|
Non-deductible items |
|
|
(532) |
|
|
|
(2,771) |
|
Unused tax losses, net |
|
|
(303) |
|
|
|
24 |
|
Non-taxable income |
|
|
2,124 |
|
|
|
183 |
|
Others
expenses |
|
|
(111) |
|
|
|
(99) |
|
Income
tax expense |
|
|
(4,971) |
|
|
|
(7,297) |
|
19. |
Payroll and social security liabilities |
|
|
|
|
|
|
|
|
|
March
31,
2015 |
|
|
December
31,
2014 |
|
|
|
(unaudited) |
|
|
|
|
Non-current |
|
|
|
|
|
|
Social
security payable |
|
|
1,322 |
|
|
|
1,278 |
|
|
|
|
1,322 |
|
|
|
1,278 |
|
Current |
|
|
|
|
|
|
|
|
Salaries payable |
|
|
7,540 |
|
|
|
6,322 |
|
Social security payable |
|
|
2,695 |
|
|
|
3,898 |
|
Provision for vacations |
|
|
8,404 |
|
|
|
12,364 |
|
Provision
for bonuses |
|
|
5,986 |
|
|
|
4,731 |
|
|
|
|
24,625 |
|
|
|
27,315 |
|
Total
payroll and social security liabilities |
|
|
25,947 |
|
|
|
28,593 |
|
20. |
Provisions for other liabilities |
The
Group is subject to several laws, regulations and business practices of the countries where it operates, In the ordinary course
of business, the Group is subject to certain contingent liabilities with respect to existing or potential claims, lawsuits and
other proceedings, including those involving tax, labor and social security, administrative and civil and other matters. The Group
accrues liabilities when it is probable that future costs will be incurred and it can reasonably estimate them. The Group bases
its accruals on up-to-date developments, estimates of the outcomes of the matters and legal counsel experience in contesting,
litigating and settling matters. As the scope of the liabilities becomes better defined or more information is available, the
Group may be required to change its estimates of future costs, which could have a material effect on its results of operations
and financial condition or liquidity. There have been no material changes to claimed amounts and current proceedings since December
31, 2014.
The
accompanying notes are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Notes
to the Condensed Consolidated Interim Financial Statements (continued)
(All
amounts in US$ thousands, except shares and per share data and as otherwise indicated)
|
|
|
|
|
|
|
|
|
March
31,
2015 |
|
|
March
31,
2014 |
|
|
|
(unaudited) |
|
Sales of manufactured
products and services rendered: |
|
|
|
|
|
|
Ethanol |
|
|
39,647 |
|
|
|
36,482 |
|
Sugar (*) |
|
|
13,955 |
|
|
|
13,069 |
|
Rice (*) |
|
|
28,121 |
|
|
|
14,704 |
|
Energy |
|
|
1,929 |
|
|
|
3,494 |
|
Powder milk |
|
|
83 |
|
|
|
- |
|
Operating leases |
|
|
314 |
|
|
|
392 |
|
Services |
|
|
423 |
|
|
|
661 |
|
Others |
|
|
8 |
|
|
|
9 |
|
|
|
|
84,480 |
|
|
|
68,811 |
|
Sales of agricultural
produce and biological assets: |
|
|
|
|
|
|
|
|
Soybean (*) |
|
|
5,217 |
|
|
|
2,185 |
|
Cattle for dairy
production |
|
|
721 |
|
|
|
455 |
|
Corn (*) |
|
|
4,149 |
|
|
|
11,914 |
|
Cotton |
|
|
713 |
|
|
|
333 |
|
Milk |
|
|
7,256 |
|
|
|
6,620 |
|
Wheat |
|
|
6,258 |
|
|
|
4,557 |
|
Sunflower |
|
|
4,637 |
|
|
|
2,000 |
|
Barley |
|
|
603 |
|
|
|
816 |
|
Seeds |
|
|
9 |
|
|
|
1,146 |
|
Others |
|
|
175 |
|
|
|
292 |
|
|
|
|
29,738 |
|
|
|
30,318 |
|
Total
sales |
|
|
114,218 |
|
|
|
99,129 |
|
(*)
Includes sales of soybean, corn, rice, powder milk and sugar produced by third parties for an amount of 11,482; 13,121; 91; 119
and 11,243 respectively.
Commitments
to sell commodities at a future date
The
Group entered into contracts to sell non financial instruments, mainly, sugar, soybean and corn through sales forward contracts.
Those contracts are held for purposes of delivery the non financial instrument in accordance with the Groups expected sales.
Accordingly, as the own use exception criteria are met, those contracts are not recorded as derivatives.
The
notional amount of these contracts is US$ 82.5 million as of March 31, 2015 (March 31, 2014: US$ 65 million) comprised primarily
of 9,718 m³ of ethanol (US$ 4.4 million), 405,101 mhw of energy (U$S 32.5 million) and 109,034 tons of soybean (U$S 31.3
million), 48,077 tons of corn (US$ 6.6 million), 416 tons of wheat (US$ 0.1 million), 500 tons of cotton (US$ 0.8 million) and
17,619 of others crops (US$ 6.8 million) which expire between August 2015 and December 2015.
The
accompanying notes are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Notes
to the Condensed Consolidated Interim Financial Statements (continued)
(All
amounts in US$ thousands, except shares and per share data and as otherwise indicated)
The
following table provides the additional disclosure required on the nature of expenses and their relationship to the function within
the Group:
|
|
|
|
|
|
|
|
|
March
31,
2015 |
|
|
March
31,
2014 |
|
|
|
(unaudited) |
|
Cost
of agricultural produce and biological assets sold |
|
|
25,018 |
|
|
|
26,184 |
|
Raw
materials and consumables used in manufacturing activities |
|
|
36,837 |
|
|
|
19,738 |
|
Services |
|
|
3,511 |
|
|
|
4,550 |
|
Salaries
and social security expenses (Note 23) |
|
|
17,636 |
|
|
|
17,250 |
|
Depreciation
and amortization |
|
|
4,877 |
|
|
|
5,287 |
|
Taxes
(*) |
|
|
690 |
|
|
|
979 |
|
Maintenance
and repairs |
|
|
5,835 |
|
|
|
6,689 |
|
Lease
expense and similar arrangements(**) |
|
|
532 |
|
|
|
836 |
|
Freights |
|
|
6,811 |
|
|
|
5,241 |
|
Export
taxes / selling taxes |
|
|
6,610 |
|
|
|
6,700 |
|
Fuel
and lubricants |
|
|
1,953 |
|
|
|
2,384 |
|
Others |
|
|
4,935 |
|
|
|
3,236 |
|
Total
expenses by nature |
|
|
115,245 |
|
|
|
99,074 |
|
(*) Excludes
export taxes and selling taxes.
(**)
Relates to various cancellable operating lease agreements for office and machinery equipment.
For
the three-month period ended March 31, 2015, an amount of US$ 60,234 is included as cost of manufactured products sold
and services rendered (March 31, 2014: 46,340); an amount of US$ 29,738 is included as cost of agricultural
produce sold and direct agricultural selling expenses (March 31, 2014: 30,318); an amount of US$ 12,018 is included
in general and administrative expenses (March 31, 2014: 10,780); and an amount of US$ 13,255 is included
in selling expenses as described above (March 31, 2014: 11,636).
23. |
Salaries and social security expenses |
|
|
|
|
|
|
|
|
|
March
31,
2015 |
|
|
March
31,
2014 |
|
|
|
(unaudited) |
|
Wages and
salaries |
|
|
12,493 |
|
|
|
11,803 |
|
Social security costs |
|
|
4,224 |
|
|
|
4,649 |
|
Equity-settled
share-based compensation |
|
|
919 |
|
|
|
798 |
|
|
|
|
17,636 |
|
|
|
17,250 |
|
Number
of employees |
|
|
8,448 |
|
|
|
7,757 |
|
The
accompanying notes are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Notes
to the Condensed Consolidated Interim Financial Statements (continued)
(All
amounts in US$ thousands, except shares and per share data and as otherwise indicated)
24. |
Other operating (loss)/income, net |
|
|
|
|
|
|
|
|
|
March
31,
2015 |
|
|
March
31,
2014 |
|
|
|
(unaudited) |
|
Gain/(Loss)
from commodity derivative financial instruments |
|
|
21,119 |
|
|
|
(11,600 |
) |
Loss from onerous contracts
– forwards |
|
|
(29 |
) |
|
|
(2,327 |
) |
Gain from disposal of other
property items |
|
|
393 |
|
|
|
351 |
|
Others |
|
|
142 |
|
|
|
6 |
|
|
|
|
21,625 |
|
|
|
(13,570 |
) |
25. Financial
results, net
|
|
|
|
|
|
|
|
|
March
31,
2015 |
|
|
March
31,
2014 |
|
|
|
(unaudited) |
|
Finance income: |
|
|
|
|
|
|
- Interest
income |
|
|
2,568 |
|
|
|
1,477 |
|
- Cash flow hedge –
transfer from equity |
|
|
464 |
|
|
|
- |
|
-
Gain from interest rate/foreign exchange rate derivative financial instruments |
|
|
226 |
|
|
|
644 |
|
-
Other income |
|
|
33 |
|
|
|
44 |
|
Finance
income |
|
|
3,291 |
|
|
|
2,165 |
|
|
|
|
|
|
|
|
|
|
Finance costs: |
|
|
|
|
|
|
|
|
- Interest expense |
|
|
(12,715 |
) |
|
|
(12,693 |
) |
- Cash flow hedge –
transfer from equity |
|
|
- |
|
|
|
(245 |
) |
- Foreign exchange losses,
net |
|
|
(13,694 |
) |
|
|
(3,702 |
) |
-
Loss from interest rate/foreign exchange rate derivative financial instruments |
|
|
- |
|
|
|
(52 |
) |
- Taxes |
|
|
(705 |
) |
|
|
(743 |
) |
-
Other expenses |
|
|
(669 |
) |
|
|
(903 |
) |
Finance
costs |
|
|
(27,783 |
) |
|
|
(18,338 |
) |
Total
financial results, net |
|
|
(24,492 |
) |
|
|
(16,173 |
) |
26. |
Disclosure of leases and similar arrangements |
The
Group as lessor - Operating leases
In
September 2013, Marfrig Argentina S.A. (Marfrig ARG), an Argentine company subsidiary of the Brazilian company
Marfrig Alimentos S.A. (today Marfrig Global Foods S.A.) (Marfrig Brazil) unilaterally early terminated the
Master Agreement, including the lease agreements entered into with the Group on December 2009 for a ten-year term. Therefore,
on April 21, 2014 the Group filed a lawsuit against Marfrig ARG and Marfrig Brazil claiming the indemnification set forth in the
Master Agreement and unpaid invoices for aggregate of approximately US$ 22.5 million. The lawsuit was filed with the Court of
Arbitration of the Stock Exchange Chamber of the City of Buenos Aires.
The
accompanying notes are an integral part of these condensed consolidated interim financial statements.
Adecoagro
S.A.
Notes
to the Condensed Consolidated Interim Financial Statements (continued)
(All
amounts in US$ thousands, except shares and per share data and as otherwise indicated)
27. |
Related-party transactions |
The
following is a summary of the balances and transactions with related parties:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related
party |
|
Relationship |
|
Description
of transaction |
|
Income
(loss) included in
the statement
of income |
|
Balance
receivable
(payable) |
|
|
|
|
March
31,
2015 |
|
March
31,
2014 |
|
March
31,
2015 |
|
December
31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
|
|
|
Mario
Jorge de Lemos Vieira/ Cia Agropecuaria Monte Alegre/ Alfenas Agricola Ltda/ Marcelo Weyland Barbosa Vieira/ Paulo Albert
Weyland Vieira |
|
(i) |
|
Receivables
(Note 11) |
|
|
- |
|
|
- |
|
|
515 |
|
|
258 |
|
|
|
|
General
and Administrative expenses |
|
|
(91 |
) |
|
- |
|
|
- |
|
|
- |
|
|
|
|
Payables
(Note 16) |
|
|
- |
|
|
- |
|
|
(19 |
) |
|
- |
|
CHS
Agro |
|
Joint
venture |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services |
|
|
28 |
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
Sales
of goods |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
Interest
income |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
Receivables
(Note 11) |
|
|
- |
|
|
- |
|
|
574 |
|
|
- |
|
|
|
|
|
Payables
(Note 16) |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Directors
and senior management |
|
Employment |
|
Compensation
selected employees |
|
|
(1,654 |
) |
|
(1,512 |
) |
|
(17,521 |
) |
|
(16,876 |
) |
(i) Shareholder
of the Company.
(ii) Relates
to agriculture partnership agreements (parceria)
The
accompanying notes are an integral part of these condensed consolidated interim financial statements.
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