Matheus Enfield's questions to Adecoagro SA (AGRO) leadership • Q2 2025
Question
Matheus Enfield from UBS Group AG questioned the cost outlook for the farming business amid margin pressures and asked about potential efficiency initiatives. He also asked if the company would consider M&A in Brazil's sugar and ethanol sector, given its current leverage and the opportunities available.
Answer
CEO Mariano Bosch detailed that while the Dairy business is stable, the Crops segment, particularly peanuts, is facing significant margin pressure from lower prices. In response, the company is reducing its leased land area by approximately 30% to lower costs. Regarding M&A, he stated that while they are always evaluating opportunities, any potential acquisition must offer very clear and attractive returns to justify increasing leverage above their target of 2.0x net debt to EBITDA.