Report of Foreign Issuer (6-k)

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, 2014

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, 2014

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, 2014 (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.


Adecoagro S.A.

By		/s/ Carlos A. Boero Hughes
Name:		Carlos A. Boero Hughes

Title:		Chief Financial Officer and Chief Accounting Officer

Date: May 14, 2014

Adecoagro S.A.

Condensed Consolidated Interim Financial Statements as of March 31, 2014 and for the three-month periods ended March 31, 2014 and 2013

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 2,251,949 are treasury shares)

Majority shareholder: Quantum Partners LP

Legal address: 1300 Thames St. 5 ^th FL, Baltimore MD 21231-3495, United States of America

Parent company activity: Investing

Capital stock: 25,910,004 common shares

F - 2

Adecoagro S.A.

Condensed Consolidated Interim Statements of Financial Position

as of March 31, 2014 and December 31, 2013

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)


		March 31,			December 31,
	Note	2014			2013
		(unaudited)
ASSETS
Non-Current Assets
Property, plant and equipment	6		856,004			790,520
Investment property	7		8,269			10,147
Intangible assets	8		25,011			27,341
Biological assets	9		254,781			225,203
Investments in joint ventures			3,713			3,179
Deferred income tax assets	18		50,079			48,368
Trade and other receivables	11		55,021			53,252
Other assets			690			707

Total Non-Current Assets			1,253,568			1,158,717

Current Assets
Biological assets	9		69,939			66,941
Inventories	12		107,364			108,389
Trade and other receivables	11		136,589			141,180
Derivative financial instruments	10		1,142			4,102
Cash and cash equivalents	13		247,431			232,147

Total Current Assets			562,465			552,759

TOTAL ASSETS			1,816,033			1,711,476

SHAREHOLDERS EQUITY
Capital and reserves attributable to equity holders of the parent
Share capital	14		183,573			183,573
Share premium	14		929,166			939,072
Cumulative translation adjustment			(325,585	)		(311,807	)
Equity-settled compensation			17,942			17,352
Cash flow hedge			(20,159	)		(15,782	)
Other reserves			(159	)		(161	)
Treasury shares			(3,379	)		(961	)
Retained earnings			45,639			43,018

Equity attributable to equity holders of the parent			827,038			854,304

Non controlling interest			39			45

TOTAL SHAREHOLDERS EQUITY			827,077			854,349

LIABILITIES
Non-Current Liabilities
Trade and other payables	16		2,967			2,951
Borrowings	17		629,889			512,164
Deferred income tax liabilities	18		52,197			57,623
Payroll and social security liabilities	19		1,498			1,458
Provisions for other liabilities	20		2,446			2,293

Total Non-Current Liabilities			688,997			576,489

Current Liabilities
Trade and other payables	16		91,537			92,965
Current income tax liabilities			384			310
Payroll and social security liabilities	19		25,026			26,139
Borrowings	17		160,209			147,967
Derivative financial instruments	10		20,079			12,600
Provisions for other liabilities	20		2,724			657

Total Current Liabilities			299,959			280,638

TOTAL LIABILITIES			988,956			857,127

TOTAL SHAREHOLDERS EQUITY AND LIABILITIES			1,816,033			1,711,476

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 3

Adecoagro S.A.

Condensed Consolidated Interim Statements of Income

for the three-month periods ended March 31, 2014 and 2013

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)


	Note	March 31, 2014			March 31, 2013
		(unaudited)
Sales of manufactured products and services rendered	21		68,811			70,031
Cost of manufactured products sold and services rendered	22		(46,340	)		(49,680	)

Gross Profit from Manufacturing Activities			22,471			20,351

Sales of agricultural produce and biological assets	21		30,318			35,682
Cost of agricultural produce sold and direct agricultural selling expenses	22		(30,318	)		(35,682	)
Initial recognition and changes in fair value of biological assets and agricultural produce			38,945			2,036
Changes in net realizable value of agricultural produce after harvest			861			1,399

Gross Profit from Agricultural Activities			39,806			3,435

Margin on Manufacturing and Agricultural Activities Before Operating Expenses			62,277			23,786

General and administrative expenses	22		(10,780	)		(11,338	)
Selling expenses	22		(11,636	)		(10,443	)
Other operating (loss)/income/, net	24		(13,570	)		13,117
Share of loss of joint ventures			(225	)		—

Profit from Operations Before Financing and Taxation			26,066			15,122

Finance income	25		2,165			3,848
Finance costs	25		(18,338	)		(14,386	)

Financial results, net	25		(16,173	)		(10,538	)

Profit Before Income Tax			9,893			4,584

Income tax expense	18		(7,297	)		(1,372	)

Profit for the Period from Continuing Operations			2,596			3,212

Profit/(Loss) for the Period from discontinued operations			—			(702	)

Profit for the Period			2,596			2,510

Attributable to:
Equity holders of the parent			2,590			2,514
Non controlling interest			6			(4	)

Loss per share from continuing and discontinued operations attributable to the equity holders of the parent during the period:
Basic earnings per share
From continuing operations			0.021			0.026
From discontinued operations			—			(0.005	)
Diluted earnings per share
From continuing operations			0.021			0.025
From discontinued operations			—			(0.005	)

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 4

Adecoagro S.A.

Condensed Consolidated Interim Statements of Comprehensive Income

for the three-month periods ended March 31, 2014 and 2013

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)


	March 31, 2014			March 31, 2013
	(unaudited)

Profit for the Period		2,596			2,510
Other comprehensive income:
Exchange differences on translating foreign operations		(13,785	)		1,224
Cash flow hedge		(4,382	)		—

Other comprehensive (loss)/income for the period		(18,167	)		1,224

Total comprehensive (loss)/income for the period		(15,571	)		3,734


Attributable to:
Equity holders of the parent		(15,565	)		3,738
Non controlling interest		(6	)		(4	)

Total comprehensive income attributable to owners of the parent arising from:
Continuing operations		(15,565	)		3,738
Discontinued operations		—			—

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 5

Adecoagro S.A.

Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity

for the three-month periods ended March 31, 2014 and 2013

(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 15)		Share Premium		Cumulative Translation Adjustment			Equity-settled Compensation			Other reserves			Treasury shares			Retained Earnings		Subtotal		Non Controlling Interest			Total Shareholders’ Equity

Balance at January 1, 2013		183,331		940,332		(182,929	)		17,952			(349	)		(6	)		67,647		1,025,978		65			1,026,043

Profit for the period		—		—		—			—			—			—			2,514		2,514		(4	)		2,510

Other comprehensive income:
- Items that may be reclassified subsequently to profit or loss:		—		—		—			—			—			—			—		—		—			—
Exchange differences on translating foreign operations		—		—		1,224			—			—			—			—		1,224		—			1,224

Other comprehensive income for the period		—		—		1,224			—			—			—			—		1,224		—			1,224

Total comprehensive loss for the period		—		—		1,224			—			—			—			2,514		3,738		(4	)		3,734

Employee share options (Note 15):

- Value of employee services		—		—		—			26			—			—			—		26		—			26

- Forfeited		—		—		—			(104	)		—			—			104		—		—			—

Restricted shares (Note 15):

- Value of employee services		—		—		—			989			—			—			—		989		—			989

- Issued (*)		231		—		—			—			(231	)		—			—		—		—			—

- Forfeited		—		—		—			—			5			(5	)		—		—		—			—

Balance at March 31, 2013 (unaudited)		183,562		940,332		(181,705	)		18,863			(575	)		(11	)		70,265		1,030,731		61			1,030,792

(*)	Shares issued approved by the Board of Directors in the Decision of the Delegate on March 29, 2013 to comply with the vesting of 153,921 shares on April 1, 2013 related to the Restricted Share and Restricted Stock Unit Plan.

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 6

Adecoagro S.A.

Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity

for the three-month periods ended March 31, 2014 and 2013 (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 15)		Share Premium			Cumulative Translation Adjustment			Equity-settled Compensation			Cash flow hedge			Other reserves			Treasury shares			Retained Earnings		Subtotal			Non Controlling Interest			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

Loss for the period		—		—			—			—			—			—			—			2,590		2,590			6			2,596

Other comprehensive income:
- Items that may be reclassified subsequently to profit or loss:
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	)		—			—			—		(15,565	)		(6	)		(15,571	)

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.

F - 7

Adecoagro S.A.

Condensed Consolidated Interim Statements of Cash Flows

for the three-month periods ended March 31, 2014 and 2013

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)


	Note	March 31, 2014			March 31, 2013
		(unaudited)
Cash flows from operating activities:

Profit for the period			2,596			2,510
Adjustments for :
Income tax benefit	18		7,297			1,372
Depreciation	22		5,186			5,600
Amortization	22		101			84
Gain from of disposal of other property items	24		(351	)		(368	)
Equity settled share-based compensation granted	23		798			1,015
Loss/(Gain) from derivative financial instruments and forwards	24, 25		13,335			(14,204	)
Interest and other expense, net	25		12,075			7,640
Initial recognition and changes in fair value of non harvested biological assets (unrealized)			(28,787	)		(2,005	)
Changes in net realizable value of agricultural produce after harvest (unrealized)			191			(415	)
Provision and allowances			2,094			378
Share of loss from joint venture			225			—
Foreign exchange gains, net	25		3,702			4,233
Cash flow hedge - transfer from equity			245			—
Discontinued operations			—			702

Subtotal			18,707			6,542
Changes in operating assets and liabilities:
Decrease in trade and other receivables			6,946			1,716
(Increase) in inventories			(3,643	)		(2,425	)
Decrease in biological assets			18,329			25,311
Decrease in other assets			17			24
(Increase) in derivative financial instruments			(2,980	)		(2,411	)
Increase/(Decrease) in trade and other payables			4,438			(12,480	)
(Decrease)/Increase in payroll and social security liabilities			(1,095	)		157
Increase/(Decrease) in provisions for other liabilities			281			(9	)

Net cash generated in operating activities before interest and taxes paid			41,000			16,425
Income tax paid			(85	)		—

Net cash generated from operating activities			40,915			16,425

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 8

Adecoagro S.A.

Condensed Consolidated Interim Statements of Cash Flows

for the three-month periods ended March 31, 2014 and 2013 (continued)

(All amounts in US$ thousands, except shares and per share data and as otherwise indicated)


	Note	March 31, 2014			March 31, 2013
		(unaudited)
Cash flows from investing activities:

Continuing operations:
Purchases of property, plant and equipment			(87,963	)		(47,232	)
Purchases of intangible assets	8		(238	)		(39	)
Purchase of cattle and non current biological assets planting cost			(25,130	)		(25,096	)
Interest received	25		1,477			1,761
Investments in joint ventures			(1,372	)		—
Proceeds from sale of farmland and other assets			—			3,018
Proceeds from sale of property, plant and equipment			268			1,220
Proceeds from disposal of subsidiaries			—			6,717


Net cash used in investing activities			(112,958	)		(59,651	)


Cash flows from financing activities:
Proceeds from equity settled share-based compensation exercised			459			—
Proceeds from long-term borrowings			120,770			49,989
Payments of long-term borrowings			(30,192	)		(13,787	)
Net increase in short-term borrowings			7,717			3,340
Interest paid			(10,201	)		(5,091	)
Purchase of own shares			(12,992	)		—


Net cash generated from financing activities			75,561			34,451

Net increase/(decrease) in cash and cash equivalents			3,518			(8,775	)

Cash and cash equivalents at beginning of period			232,147			218,809
Effect of exchange rate changes on cash and cash equivalents			11,766			403


Cash and cash equivalents at end of period			247,431			210,437

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 9

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)

1.	General information

Adecoagro S.A. (the “Company” or “Adecoagro”) is the Group’s 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 five 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 13, 2014.

2.	Basis of preparation and presentation

The information presented in the accompanying three-month condensed consolidated interim financial statements as of March 31, 2014 and for the three-month periods ended March 31, 2014 and 2013 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, 2014, results of operations and cash flows for the three months ended March 31, 2014 and 2013. All such adjustments are of a normal recurring nature. In preparing the accompanying condensed consolidated 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 condensed consolidated interim financial statements have been prepared in accordance with IAS 34, ‘Interim financial reporting’. The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2013, which have been prepared in accordance with IFRSs.

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended December 31, 2013.

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, 2014, 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.

F - 10

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 Group’s 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 Cattle and Dairy business segments, tend to be more stable. However, the raising of cattle and 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 sugarcane 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, 2013 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, 2014. These disclosures do not appear in any particular order of potential materiality or probability of occurrence.

•

Exchange rate risk

The following tables show the Group’s net monetary position broken down by various currencies for each functional currency in which the Group operates at March 31, 2014. All amounts are shown in US dollars.


	March 31, 2014
	(unaudited)
	Functional currency
Net monetary position (Liability)/Asset	Argentine Peso			Brazilian Reais			Uruguayan Peso			US Dollar		Total
Argentine Peso		(35,928	)		—			—			—		(35,928	)
Brazilian Reais		—			(379,219	)		—			—		(379,219	)
US Dollar		(96,881	)		(176,556	)		20,949			95,619		(156,869	)
Uruguayan Peso		—			—			(487	)		—		(487	)

Total		(132,809	)		(555,775	)		20,462			95,619		(572,503	)

The Group’s 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, 2014 would have increased the Group’s Loss 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.

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 11

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)


	March 31, 2014
	(unaudited)
	Functional currency
Net monetary position	Argentine Peso			Brazilian Reais			Uruguayan Peso		US Dollar		Total
Argentine Peso		n/a			—			—		—		—
Brazilian Reais		—			n/a			—		—		—
US Dollar		(9,688	)		(17,656	)		2,095		n/a		(25,249	)
Uruguayan Peso		—			—			n/a		—		—

(Increase) or decrease in Loss Before Income Tax		(9,688	)		(17,656	)		2,095		—		(25,249	)

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 2014 and 2020.

For the period ended March 31, 2014, a total amount before income tax of US$ 7,070 was recognized in other comprehensive income and an amount of US$ (245) loss was reclassified from equity to profit or loss within “Financial results, net”.

•

Interest rate risk

The following table shows a breakdown of the Group’s fixed-rate and floating-rate borrowings per currency denomination and functional currency of the subsidiary issuing the loans (excluding finance leases) at March 31, 2014 (all amounts are shown in US dollars):


	March 31, 2014
	(unaudited)
	Functional currency
Rate per currency denomination	Argentine Peso		Brazilian Reais		Uruguayan Peso		Total
Fixed rate:
Argentine Peso		31,821		—		—		31,821
Brazilian Reais		—		192,839		—		192,839
Uruguayan Peso		51,975		26,544		—		78,519
US Dollar		—		—		5		5

Subtotal Fixed-rate borrowings		83,796		219,383		5		303,184

Variable rate:
Brazilian Reais		—		198,431		—		198,431
US Dollar		39,554		248,366		—		287,920

Subtotal Variable-rate borrowings		39,554		446,797		—		486,351

Total borrowings as per analysis		123,350		666,180		5		789,535

Finance leases		545		18		—		563

Total borrowings at March 31, 2014		123,895		666,198		5		790,098

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 12

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)

At March 31, 2014, 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, 2014
	(unaudited)
	Functional currency
Rate per currency denomination	Argentine Peso			Brazilian Reais			Uruguayan Peso		Total
Variable rate:
Brazilian Reais		—			(1,984	)		—		(1,984	)
US Dollar		(396	)		(2,484	)		—		(2,880	)

Total effects on Loss Before Income Tax		(396	)		(4,468	)		—		(4,864	)

•

Credit risk

As of March 31, 2014, 6 banks accounted for more than 65% of the total cash deposited (Rabobank, HSBC, ING, ICBC, Hinduja, Bradesco).

•

Derivative financial instruments

The following table shows the outstanding positions for each type of derivative contract as of March 31, 2014:

•

Futures / Options


	March 31, 2014
Type of derivative contract	Quantities (thousands) ()**		Notional amount			Market Value Asset/ (Liability)			(Loss)/Profit (*)
						(unaudited)			(unaudited)
Futures:
Sale
Corn		163		30,235			(2,794	)		(2,486	)
Soybean		98		40,513			(2,497	)		(2,535	)
Sugar		152		59,825			(1,372	)		(1,390	)
Ethanol		—		191			4			4
OTC
Soybean		14		6,400			(661	)		(851	)
Options:
*Buy put*
Corn		23		1,133			521			(612	)
Soybean		7		532			231			(300	)
*Sell put*
Corn		2		(79	)		(34	)		45
*Sell call*
Soybean		28		(173	)		(716	)		(544	)
Corn		46		(777	)		(2,415	)		(1,643	)
*Buy Call*
Corn		65		308			386			78

Total		598		138,108			(9,347	)		(10,234	)

(*)

Included in line “Gain from commodity derivative financial instruments”, Note 25.

(**)	All quantities expressed in tons except otherwise indicated.

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 13

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)

Commodity future contract fair values are computed with reference to quoted market prices on future exchanges.

•

Other derivative financial instruments

As of March 31, 2014, 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, 2013.

Currency forward

During the periods ended March 31, 2014 and 2013, 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 and US$ 14 million, respectively. The currency forward contracts entered in 2014 had maturity dates between March 2014 and June 2014, while those entered in 2013 had maturity dates ranging between March 2013 and December 2013. The outstanding contracts resulted in the recognition of a loss amounting to US$ 0.1 million in 2014 and of a gain amounting to US$ 2.7 million in 2013. Gain and losses on currency forward contracts are included within “Financial results, net” in the statement of income.

During the period ended on March 2014, the Group entered into several currency forward contracts with Argentinian banks in order to hedge the fluctuation of the Argentinian peso against US Dollar for a total notional amount of US$ 17.2 million. The currency forward contracts maturity date is May 2014. The outstanding contracts resulted in the recognition of a gain amounting to US$ 0.15 million in 2014. 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 Group’s critical accounting policies are also consistent with those of the audited annual financial statements for the year ended December 31, 2013 described in Note 4.

5.	Segment information

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. As from January 1, 2014 the Group’s management does not consider its Coffee and Cattle businesses to be of continuing significance and they do not meet the quantitative threshold for disclosure. The Coffee and Cattle businesses are now presented within “Farming – All Other Segments” and prior years disclsoures have been recast to conform to this presentation.

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 14

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 Group’s ‘Farming’ line of business is further comprised of three reportable segments:

•

The Group’s ‘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 and handling and drying services to third parties. 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 Group’s ‘Rice’ Segment consists of planting, harvesting, processing and marketing of rice;

•

The Group’s ‘Dairy’ Segment consists of the production and sale of raw milk,

•

The Group’s ‘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 Group’s management does not consider them to be of continuing significance as from January 1, 2014, namely, Coffee and Cattle.

•

The Group’s ‘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 Group’s ‘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 Group’s segment reporting structure are based on the IFRS principles adopted in the condensed consolidated interim financial statements. Revenue generated and goods and services exchanged between segments are calculated on the basis of market prices.

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 Group’s investment in the joint venture CHS S.A. is allocated to the ‘Crops’ segment.

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 15

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 following table presents information with respect to the Group’s reportable segments. Certain other activities of a holding function nature not allocable to the segments are disclosed in the column ‘Corporate’ .

Segment analysis for the three-month period ended March 31, 2014 (unaudited)


	*Farming*															Sugar, Ethanol			Land Transformation		*Corporate*			*Total*
	Crops			Rice			Dairy			All Other Segments			*Farming subtotal*			and Energy			Land Transformation		*Corporate*			*Total*
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.

F - 16

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, 2013 (unaudited)


	*Farming*															Sugar, Ethanol			Land Transformation		*Corporate*			*Total*
	Crops			Rice			Dairy			All Other Segments			*Farming subtotal*			and Energy			Land Transformation		*Corporate*			*Total*
Sales of manufactured products and services rendered		185			26,507			—			896			27,588			42,443			—		—			70,031
Cost of manufactured products sold and services rendered		—			(23,821	)		—			(25	)		(23,846	)		(25,834	)		—		—			(49,680	)

Gross Profit from Manufacturing Activities		185			2,686			—			871			3,742			16,609			—		—			20,351

Sales of agricultural produce and biological assets		27,558			1,026			6,384			714			35,682			—			—		—			35,682
Cost of agricultural produce sold and direct agricultural selling expenses		(27,558	)		(1,026	)		(6,384	)		(714	)		(35,682	)		—			—		—			(35,682	)
Initial recognition and changes in fair value of biological assets and agricultural produce		12,051			5,717			958			(10,992	)		7,734			(5,698	)		—		—			2,036
Changes in net realizable value of agricultural produce after harvest		1,380			—			—			19			1,399			—			—		—			1,399

Gross Profit / (loss) from Agricultural Activities		13,431			5,717			958			(10,973	)		9,133			(5,698	)		—		—			3,435

Margin on Manufacturing and Agricultural Activities Before Operating Expenses		13,616			8,403			958			(10,102	)		12,875			10,911			—		—			23,786

General and administrative expenses		(986	)		(1,209	)		(275	)		(281	)		(2,751	)		(4,046	)		—		(4,541	)		(11,338	)
Selling expenses		(1,092	)		(4,099	)		(82	)		(55	)		(5,328	)		(5,097	)		—		(18	)		(10,443	)
Other operating (loss)/income, net		2,596			178			42			188			3,004			10,170			—		(57	)		13,117
Share of loss of joint ventures		—			—			—			—			—			—			—		—			—

Profit / (loss) from Operations Before Financing and Taxation		14,134			3,273			643			(10,250	)		7,800			11,938			—		(4,616	)		15,122


Profit from discontinued operations		—			—			(702	)		—			(702	)		—			—		—			(702	)
Depreciation and amortization		(564	)		(1,294	)		(274	)		(131	)		(2,263	)		(3,421	)		—		—			(5,684	)
Initial recognition and changes in fair value of biological assets (unrealized)		7,946			176			(15	)		(9,386	)		(1,279	)		492			—		—			(787	)
Initial recognition and changes in fair value of agricultural produce (unrealized)		2,371			4,592			—			(1,561	)		5,402			(2,610	)		—		—			2,792
Initial recognition and changes in fair value of biological assets and agricultural produce (realized)		1,734			949			973			(45	)		3,611			(3,580	)		—		—			31
Changes in net realizable value of agricultural produce after harvest (unrealized)		396			—			—			19			415			—			—		—			415
Changes in net realizable value of agricultural produce after harvest (realized)		984			—			—			—			984			—			—		—			984

Property, plant and equipment, net		157,664			55,411			20,097			10,333			243,505			547,015			—		—			790,520
Investment property		—			—			—			10,147			10,147			—			—		—			10,147
Goodwill		9,956			4,233			—			1,367			15,556			9,313			—		—			24,869
Biological assets		35,982			30,596			9,450			2,340			78,368			213,776			—		—			292,144
Investment in joint ventures		3,179			—			—			—			3,179			—			—		—			3,179
Inventories		27,240			10,128			1,563			213			39,144			69,245			—		—			108,389

Total segment assets		234,021			100,368			31,110			24,400			389,899			839,349			—		—			1,229,248

Borrowings		68,886			41,906			10,477			—			121,269			538,862			—		—			660,131

Total segment liabilities		68,886			41,906			10,477			—			121,269			538,862			—		—			660,131

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 17

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 Group’s property, plant and equipment in the three-month periods ended March 31, 2014 and 2013 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, 2013
Opening net book amount		284,281			8,517			148,886			212,641			1,593			1,740			223,239			880,897
Exchange differences		(6,647	)		(350	)		227			2,537			15			(66	)		2,535			(1,749	)
Additions		—			—			7,994			31,419			273			59			23,956			63,701
Transfers		—			28			725			434			—			—			(1,187	)		—
Disposals		—			—			—			(1,138	)		(3	)		—			—			(1,141	)
Reclassification to non-income tax credits (*)		—			—			(144	)		1,535			—			—			—			1,391
Depreciation (Note 22)		—			(527	)		(1416	)		(3,380	)		(146	)		(131	)		—			(5,600	)

Closing net book amount		277,634			7,668			156,272			244,048			1,732			1,602			248,543			937,499

At March 31, 2013 (unaudited)
Cost		277,634			13,064			210,688			397,922			4,400			4,420			248,543			1,156,671
Accumulated depreciation		—			(5,396	)		(54,416	)		(153,874	)		(2,668	)		(2,818	)		—			(219,172	)

Net book amount		277,634			7,668			156,272			244,048			1,732			1,602			248,543			937,499

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

(*)	Brazilian federal tax law allows entities to take a percentage of the total cost of the assets purchased as a tax credit. As of December 31, 2013, ICMS tax credits were reclassified to trade and other receivables.

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 18

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$ 2,937 and US$ 3,810 of depreciation are included in “Cost of manufactured products sold and services rendered” for the three-month periods ended March 31, 2014 and 2013, respectively. An amount of US$ 1,437 and US$ 1,673 of depreciation are included in “General and administrative expenses” for the three-month periods ended March 31, 2014 and 2013, respectively. An amount of US$ 143 and US$ 117 of depreciation are included in “Selling expenses” for the three-month periods ended March 31, 2014 and 2013, respectively.

As of March 31, 2014, borrowing costs of US$ 1,137 (March 31, 2013: US$ 4,781) were capitalized as components of the cost of acquisition or construction of qualifying assets.

Certain of the Group’s assets have been pledged as collateral to secure the Group’s borrowings and other payables. The net book value of the pledged assets amounts to US$ 24,324 as of March 31, 2014.

As of March 31, 2014 included within property, plant and equipment balances are US$ 802 related to the net book value of assets under finance leases.

7.	Investment property

Changes in the Group’s investment property in the three-month periods ended March 31, 2014 and 2013 were as follows:


	March 31, 2014			March 31, 2013
	(unaudited)
Beginning of the period		10,147			15,542
Exchange differences		(1,878	)		(619	)

End of the period		8,269			14,923


Cost		8,269			14,923
Accumulated depreciation		—			—

Net book amount		8,269			14,923

The following amounts have been recognized in the statement of income in the line “Sales of manufactured products and services rendered”:


	March 31, 2014		March 31, 2013
	(unaudited)
Rental income		340		1,021

As of March 31, 2014, the fair value of investment property was US$ 58 million (2013: US$ 67 million).

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 19

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)

8.	Intangible assets

Changes in the Group’s intangible assets in the three-month periods ended March 31, 2014 and 2013 were as follows:


	Goodwill			Trademarks			Software			Others			Total
Three-month period ended March 31, 2013
Opening net book amount		31,100			1,356			341			83			32,880
Exchange differences		(598	)		(1	)		(1	)		1			(599	)
Additions		—			—			17			22			39
Amortization charge (i) (Note 22)		—			(43	)		(41	)		—			(84	)

Closing net book amount		30,502			1,312			316			106			32,236

At March 31, 2013 (unaudited)
Cost		30,502			2,601			1,078			106			34,287
Accumulated amortization		—			(1,289	)		(762	)		—			(2,051	)

Net book amount		30,502			1,312			316			106			32,236


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
Disposal
Amortization charge (ii) (Note 22)		—			(35	)		(66	)		—			(101	)

Closing net book amount		22,528			1,080			1,403			—			25,011

At March 31, 201 4 (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

(i)	For the three-month period ended March 31, 2013 an amount of US$ 41 and US$ 43 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, 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.

The Group tests annually whether goodwill has suffered any impairment. The last impairment test of goodwill was performed as of September 30, 2013.

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 20

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)

9.	Biological assets

Changes in the Group’s biological assets in the three-month periods ended March 31, 2014 and 2013 were as follows:


	March 31, 2014			March 31, 2013
	(unaudited)
Beginning of the period		292,144			298,136
Increase due to purchases		526			41
Initial recognition and changes in fair value of biological assets (i)		38,945			2,036
Decrease due to harvest		(71,509	)		(73,684	)
Decrease due to sales		(455	)		(723	)
Decrease due to grant of exploration of biological assets		(6,620	)		—
Costs incurred during the period		74,697			74,119
Exchange differences		(3,008	)		2,060


End of the period		324,720			301,985

(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$ (7,659) loss for the three-month period ended March 31, 2014 (2013: US$ (15,732) loss). In 2014, an amount of US$ 31,660 gain (2013: US$ 3,450 gain) was attributable to price changes, and an amount of US$ (39,319) loss (2013: US$ (19,182) loss) was mainly attributable to physical changes.

Biological assets as of March 31, 2014 and December 31, 2013 were as follows:


	March 31, 2014		December 31, 2013
	(unaudited)
Non-current
Cattle for dairy production		7,695		9,450
Other cattle		20		33
Sown land - coffee		2,100		1,944
Sown land - sugarcane		244,966		213,776

		254,781		225,203

Current
Other cattle		360		363
Sown land - crops		66,882		35,982
Sown land - rice		2,697		30,596

		69,939		66,941

Total biological assets		324,720		292,144

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 21

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, 2014, 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 Group’s 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 Group’s financial assets and financial liabilities that are measured at fair value as of March 31, 2014 and their allocation to the fair value hierarchy:


	2014
	Level 1			Level 2			Level 3		Total
Assets
Derivative financial instruments		1,142			—			—		1,142

Total assets		1,142			—			—		1,142

Liabilities
Derivative financial instruments		(9,953	)		(10,126	)		—		(20,079	)

Total liabilities		(9,953	)		(10,126	)		—		(20,079	)

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 22

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		(6,784	)

Options	Quoted price	—	—	1		(2,026	)

Options/ OTC	Quoted price	—	Black & Scholes	2		(661	)

Foreign-currency interest-rate swaps	Theoretical price	Swap curve; Money market interest-rate curve; Foreign-exchange curve.	Present value method	2		(5	)

Interest-rate swaps	Theoretical price	Swap curve; Money market interest-rate curve	Present value method	2		(9,461	)

						(18,937	)

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 23

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, 2014			December 31, 2013
	(unaudited)
Non current

Trade receivables		3,627			4,676

Trade receivables - net		3,627			4,676

Advances to suppliers		12,695			10,658
Income tax credits		6,194			7,058
Non-income tax credits (i)		14,958			13,941
Judicial deposits		—			2,706
Receivable from disposal of subsidiary		9,698			9,202
Cash collateral		946			451
Other receivables		6,903			4,560


Non current portion		55,021			53,252

Current
Trade receivables		24,660			46,326
Less: Allowance for trade receivables		(471	)		(545	)

Trade receivables - net		24,189			45,781

Prepaid expenses		10,784			7,786
Advance to Suppliers		25,227			16,088
Income tax credits		5,936			5,519
Non-income tax credits (i)		38,537			43,700
Cash collateral		6,945			6,554
Receivable from disposal of subsidiary		6,466			6,174
Other receivables		18,505			9,578

Subtotal		112,400			95,399

Current portion		136,589			141,180

Total trade and other receivables, net		191,610			194,432

(i)	Includes US$ 293 reclassified from property, plant and equipment (December 31, 2013: US$ 383).

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 24

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 Group’s trade and other receivables are denominated in the following currencies (expressed in US dollars):


	March 31, 2014		December 31, 2013
	(unaudited)
Currency
US Dollar		20,856		30,054
Argentine Peso		48,269		50,512
Uruguayan Peso		1,371		520
Brazilian Reais		121,114		113,346

		191,610		194,432

As of March 31, 2014 trade receivables of US$ 4,680 (December 31, 2013: US$ 14,319) were past due but not impaired. The ageing analysis of these receivables is as follows:


	March 31, 2014		December 31, 2013
	(unaudited)
Up to 3 months		3,654		13,432
3 to 6 months		272		827
Over 6 months		754		60

		4,680		14,319

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. The Group holds mortgage as collateral for the sale of Agrícola Ganadera San José S.R.L.

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 25

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)

12.

Inventories


	March 31, 2014		December 31, 2013
	(unaudited)
Raw materials		30,274		37,859
Finished goods		75,453		67,689
Stocks held by third parties		1,621		2,824
Others		16		17

		107,364		108,389

The cost of inventories recognized as expense are included in ‘Cost of manufactured products sold and services rendered’ amounted to US$ 46,340 for the three-month period ended March 31, 2014. The cost of inventories recognized as expense and included in ‘Cost of agricultural produce sold and direct agricultural selling expenses’ amounted to US$ 19,109 for the three-month period ended March 31, 2014.

13.

Cash and cash equivalents


	March 31, 2014		December 31, 2013
	(unaudited)
Cash at bank and on hand		227,531		165,362
Short-term bank deposits		19,900		66,785

		247,431		232,147

14.

Shareholders’ contributions


	Number of shares (thousands)		Share capital and share premium
At January 1, 2013		122,220		1,123,663
Restricted shares issued (Note 15)		154		231

At March 31, 2013		122,374		1,123,894


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

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 26

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)

14.

Shareholders’ contributions (continued)

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 will be 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 Company’s discretion and without prior notice. The size and the timing of repurchases will depend upon market conditions, applicable legal requirements and other factors.

As of March 31, 2014, the Company repurchased 2,343,846 shares under this program.

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 to senior and medium management and key employees of the Group’s subsidiaries.

(a)

Option Schemes

For the three-month periods ended March 31, 2014 and 2013 the Group incurred US$ nil and US$ 0.03 million respectively, 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, 2014					March 31, 2013
	Average exercise price per share		Options (thousands)			Average exercise price per share		Options (thousands)

At January 1		6.67		2,061			6.68		2,100
Granted							—		—
Forfeited							8.62		(1	)
Exercised		5.83		(79	)		—		—
Expired							—		—

At March 31		6.70		1,982			6.68		2,099

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 27

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)

2007/2008 Equity Incentive Plan


	March 31, 2014					March 31, 2013
	Average exercise price per share		Options (thousands)			Average exercise price per share		Options (thousands)
At January 1		13.07		1,751			13.06		2,013
Granted							—		—
Forfeited		13.40		(9	)		13.24		(28	)

At March 31		13.07		1,742			13.06		1,985

Options outstanding under the plans have the following expiry date and exercise prices:

2004 Incentive Option Plan


	Exercise price per share
			Shares (in thousands)
Expiry date:			March 31, 2014		March 31, 2013
May 1, 2014		5.83		597		674
May 1, 2015		5.83		553		553
May 1, 2016		5.83		153		173
February 16, 2016		7.11		110		110
October 1, 2016		8.62		569		590

2007/2008 Equity Incentive Plan


	Exercise price per share
			Shares (in thousands)
Expiry date:			March 31, 2014		March 31, 2013
Dec 1, 2017		12.82		963		1,132
Jan 30, 2019		13.40		599		670
Nov 1, 2019		13.40		8		8
Jan 30, 2020		12.82		26		26
Jan 30, 2020		13.40		65		68
Jun 30, 2020		13.40		22		22
Sep 1, 2020		13.40		44		44
Sep 1, 2020		12.82		15		15

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 28

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)

The following table shows the exercisable shares at period end under both the Adecoagro/ IFH 2004 Incentive Option Plan and the Adecoagro/ IFH 2007/ 2008 Equity Incentive Plan:


	Exercisable shares in thousands
March 31, 2014		3,704
March 31, 2013		4,018

(b)

Restricted Share and Restricted Stock Unit Plan

The Restricted Share and Restricted Stock Unit Plan was 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 participant’s 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, 2014, 119,315 restricted shares are not yet vested.

The restricted shares under the Restricted Share and Restricted Stock Unit Plan were measured at fair value at the date of grant.

As of March 31, 2014, the Group recognized compensation expense US$ 0.8 million related to the restricted shares granted under the Restricted Share and Restricted Stock Unit Plan (2013: US$ 1.0 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, 2011			Apr 1, 2011			May 13, 2011			Apr 1, 2012			May 15, 2012			Apr 1, 2013			May 15, 2013

Fair value		12.69			12.69			12.36			9.81			9.33			8.08			7.48
Possibility of ceasing employment before vesting		1.42	%		1.86	%		0	%		3	%		0	%		5	%		0	%

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 29

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)

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)
	2014			2014			2013			2013
At January 1		110			699			234			515
Granted (1)		—			—			—			—
Forfeited		(2	)		(13	)		(3	)		(6	)
Vested		—			—			—			—

At March 31		108			686			231			509

(1)	Approved by the Board of Directors of March 19, 2013 and the Shareholders Meeting of April 17, 2013

16.

Trade and other payables


	March 31, 2014		December 31, 2013
	(unaudited)
Non-current
Payable from acquisition of property, plant and equipment (i)		2,605		2,605
Other payables		362		346

		2,967		2,951

Current
Trade payables		78,602		84,009
Advances from customers		6,963		2,900
Amounts due to related parties (Note 26)		706		1,069
Taxes payable		2,576		3,108
Payables from acquisitions of property, plants and equipment		545		—
Escrows arising on business combinations		1,046		1,030
Other payables		1,099		849

		91,537		92,965

Total trade and other payables		94,504		95,916

(i)	These trades payable are mainly collateralized by property, plant and equipment of the Group.

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 30

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


	March 31, 2014		December 31, 2013
	(unaudited)
Non-current
Votoratim		3,387		3,388
ABC Brazil Loan		18,340		17,746
Bradesco Loan (*)		8,883		8,832
BNDES Loan Facility (*)		125,356		108,804
IDB Facility (*)		37,846		37,703
Ciudad de Buenos Aires Loan		14,286		14,286
Galicia Loan		937		1,150
Banco do Brazil Loan Facility (*)		84,781		82,997
Itaú BBA Facility (*)		43,690		44,327
Rabobank Loan (*)		33,692		32,482
ING/ABN/Bladex (*)		52,028		52,000
Rabobank. Syndicated Loan (*)		89,007		88,980
ING Bank N.V. Syndicated Loan (*)		97,702		—
Other bank borrowings		19,665		19,058
Obligations under finance leases		289		411

		629,889		512,164


Current
Bank overdrafts		15,010		5,750
BNDES Loan Facility (*)		11,242		8,695
IDB Facility (*)		16,361		15,388
Ciudad de Buenos Aires Loan		2,969		2,992
Galicia Loan		9,133		5,733
Banco do Brazil Loan Facility (*)		7,412		6,888
Rabobank Loan (*)		35,673		32,249
ITAU (*)		12,359		10,924
ABC Brazil Loan		10,779		10,027
Bradesco Loan (*)		6,006		5,932
Votoratim		7,614		7,310
ING/ABN/Bladex (*)		36		17,003
Rabobank. Syndicated Loan (*)		225		365
ING Bank N.V. Syndicated Loan (*)		74		—
Other bank borrowings		25,042		18,383
Obligations under finance leases		274		328

		160,209		147,967

Total borrowings		790,098		660,131

(*)	The Group was in compliance with the related covenants under the respective loan agreements.

New loan of the period – ING Bank N.V. Syndicated Loan

In March 2014, Adecoagro Vale do Ivinhema entered into a US$ 100.0 million loan with syndicate of banks, led by ING Bank N.V., due 2017. This syndicate loan bears an interest of LIBOR 3 months + 4.20% per annum. Certain covenants are measured on a combined basis aggregating the borrowing subsidiaries and others are measured on an individual basis.

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 31

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)

Financial ratios:

2014

2015

2016

Net Bank Debt / EBITDA

[<] 4.5

[<] 5

[<] 4.5

Solvency Ratio

[>]40

Interest Coverage Ratio

[<] 2

As of March 31, 2014, total bank borrowings include collateralized liabilities of US$ 641,857 (December 31, 2013: US$ 625,533). 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 Group’s borrowings (excluding obligations under finance leases) and the Group’s exposure to fixed and variable interest rates is as follows:


	March 31, 2014		December 31, 2013
	(unaudited)
Fixed rate:
Less than 1 year		79,541		56,932
Between 1 and 2 years		44,072		38,393
Between 2 and 3 years		39,444		37,762
Between 3 and 4 years		31,630		29,467
Between 4 and 5 years		29,722		27,803
More than 5 years		78,775		75,745

		303,184		266,102

Variable rate:
Less than 1 year		80,394		90,707
Between 1 and 2 years		154,602		107,392
Between 2 and 3 years		143,671		100,949
Between 3 and 4 years		69,068		54,212
Between 4 and 5 years		12,428		12,586
More than 5 years		26,188		27,444

		486,351		393,290

		789,535		659,392

The carrying amounts of the Group’s borrowings are denominated in the following currencies (expressed in US dollars):


	March 31, 2014		December 31, 2013
	(unaudited)
Currency
US Dollar		366,439		257,283
Brazilian Reais		391,288		372,058
Argentine Peso		32,366		30,775
Uruguayan Peso		5		15

		790,098		660,131

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 32

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)

18.

Taxation

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.


	March 31, 2014			March 31, 2013
	(unaudited)
Current income tax		(322	)		(347	)
Deferred income tax		(6,975	)		(1,025	)

Income tax expense		(7,297	)		(1,372	)

There has been no change in the statutory tax rates in the countries where the Group operates since December 31, 2013.

In September 2013, Argentina enacted a law that amends its income tax law. The law includes a new 10% withholding tax on dividend distributions made by Argentine companies to individuals and foreign beneficiaries. As of March 31, 2014, 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, 2014			March 31, 2013
	(unaudited)
Beginning of period		9,255			39,997
Exchange differences		(11,665	)		(3,385	)
Tax charge relating to cash flow hedge (i)		(2,448	)		—
Income tax expense		6,975			1,025

End of period		2,117			37,637

(i)	Relates to the gain or loss before income tax of cash flow hedge recognized in other comprehensive income amounting to US$ 6,825 for the three-month period ended March 31, 2014.

The tax on the Group’s 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, 2014			March 31, 2013
	(unaudited)
Tax calculated at the tax rates applicable to profits in the respective countries		4,634			1,340
Non-deductible items		879			366
Unused tax losses, net		(24	)		(73	)
Non-taxable income		1,709			(241	)
Others		99			(20	)

Income tax expense		7,297			1,372

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 33

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)

19.

Payroll and social security liabilities


	March 31, 2014		December 31, 2013
	(unaudited)
Non-current
Social security payable		1,498		1,458

		1,498		1,458

Current
Salaries payable		7,469		5,782
Social security payable		2,942		3,849
Provision for vacations		9,517		11,481
Provision for bonuses		5,098		5,027

		25,026		26,139

Total payroll and social security liabilities		26,524		27,597

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, 2013, except for the increase in provision for onerous contracts as of March 31, 2014 for a total amount of US$ 2,235.

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 34

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)

21.

Sales


	March 31, 2014		March 31, 2013
	(unaudited)
Sales of manufactured products and services rendered:
Ethanol		36,482		31,605
Sugar		13,069		10,548
Rice		14,704		25,957
Energy		3,494		290
Operating leases		392		1,021
Services		661		603
Others		9		7

		68,811		70,031

Sales of agricultural produce and biological assets:
Soybean		2,185		6,228
Cattle for dairy production		455		448
Other cattle		—		275
Corn		11,914		8,121
Cotton		333		658
Milk		6,620		5,936
Wheat		4,557		6,945
Coffee		—		439
Sunflower		2,000		4,133
Barley		816		1,211
Seeds		1,146		998
Others		292		290

		30,318		35,682

Total sales		99,129		105,713

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 Group’s 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$ 65 million as of March 31, 2014 (2013: US$ 72.9 million) comprised primarily of 91,474 tons of soybean (US$ 32 million), 68,860 tons of corn (U$S 11 million), 13,462 tons of sugar (U$S 5 million), 1,202 tons of wheat (U$S 1 million), 5,100 tons of cotton (U$S 6 million), 53 tons of Sorghum (U$S 1 million) which expire between May 2014 and September 2014.

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 35

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)

22.

Expenses by nature

The following table provides the additional disclosure required on the nature of expenses and their relationship to the function within the Group:


	March 31, 2014		March 31, 2013
	(unaudited)
Cost of agricultural produce and biological assets sold		26,184		29,748
Raw materials and consumables used in manufacturing activities		19,738		28,503
Services		4,550		3,735
Salaries and social security expenses (Note 23)		17,250		15,603
Depreciation and amortization (*)		5,287		5,684
Taxes (**)		979		904
Maintenance and repairs		6,689		5,361
Lease expense and similar arrangements (***)		836		854
Freights		5,241		6,550
Export taxes / selling taxes		6,700		5,216
Fuel and lubricants		2,384		1,250
Others		3,236		3,735

Total expenses by nature		99,074		107,143

(*)	Includes US$ 669 and nill of depreciation recognized in inventory as of December 31, 2013 and 2012, respectively.

(**)	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, 2014, an amount of US$ 46,340 is included as “cost of manufactured products sold and services rendered” (March 31, 2013: US$ 49,680); an amount of US$ 30,318 is included as “cost of agricultural produce sold and direct agricultural selling expenses” (March 31, 2013: US$ 35,682); an amount of US$ 10,780 is included in “general and administrative expenses” (March 31, 2013: US$ 11,338); and an amount of US$ 11,636 is included in “selling expenses” as described above (March 31, 2013: US$ 10,443).

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 36

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)

23.

Salaries and social security expenses


	March 31, 2014		March 31, 2013
	(unaudited)
Wages and salaries		11,803		11,028
Social security costs		4,649		3,560
Equity-settled share-based compensation		798		1,015

		17,250		15,603

Number of employees		7,757		7,431

24.

Other operating (loss)/income, net


	March 31, 2014			March 31, 2013
	(unaudited)
(Loss) / gain from commodity derivative financial instruments		(11,600	)		12,447
Loss from onerous contracts - forwards		(2,327	)		(228	)
Gain from disposal of other property items		351			368
Others		6			530

		(13,570	)		13,117

25.

Financial results, net


	March 31, 2014			March 31, 2013
	(unaudited)
Finance income:
- Interest income		1,477			1,761
- Gain from interest rate/foreign exchange rate derivative financial instruments		644			1,985
- Other income		44			102

Finance income		2,165			3,848


Finance costs:
- Interest expense		(12,693	)		(8,576	)
- Cash flow hedge - transfer from equity		(245	)		—
- Foreign exchange losses, net		(3,702	)		(4,233	)
- Loss from interest rate/foreign exchange rate derivative financial instruments		(52	)		—
- Taxes		(743	)		(650	)
- Other expenses		(903	)		(927	)

Finance costs		(18,338	)		(14,386	)

Total financial results, net		(16,173	)		(10,538	)

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

F - 37

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)

26.

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)
Related party	Relationship	Description of transaction	March 31, 2014			March 31, 2013			March 31, 2014			December 31, 2013
			(unaudited)			(unaudited)			(unaudited)
Mario Jorge de Lemos Vieira/ Cia Agropecuaria Monte Alegre/ Alfenas Agricola Ltda/ Marcelo Weyland Barbosa Vieira/ Paulo Albert Weyland Vieira	(i)	Cost of manufactured products sold and services rendered (ii)		—			—			—			—
		Payables (Note 16)		—			—			(303	)		(667	)

CHS Agro	Joint venture	Purchases of goods					—			—			—
	Joint venture	Payables (Note 16)		—			—			(403	)		(402	)

Directors and senior management	Employment	Compensation selected employees		(1,512	)		(1,513	)		(18,062	)		(17,472	)