Indicate by check mark whether the registrant
files or will file annual reports under cover of Form 20-F or 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.
If “Yes” is marked, indicate
below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-
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 SIX MONTH PERIOD ENDED JUNE 30, 2016
This Report of Foreign Private Issuer on
Form 6-K (this “Form 6-K”) is being filed by Adecoagro S.A. (“Adecoagro” or the “Company”)
with the Securities and Exchange Commission (the “SEC”) and is incorporated by reference into the Company’s Registration
Statement on Form F-3 filed with the SEC on December 6, 2013 (File No. 333-191325) and will be deemed to be a part thereof from
the date on which this Form 6-K is filed with the SEC, to the extent not superseded by documents or reports subsequently filed
or furnished. The Company is filing this report on Form 6-K for the purpose of filing a copy of the Company’s unaudited condensed
consolidated financial statements as of and for the six month period ended June 30, 2016 (the “Consolidated Financial Statements”)
as Exhibit 99.1. 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: August 11, 2016
Adecoagro S.A.
Condensed Consolidated
Interim Financial Statements as of June 30, 2016 and for the six-month periods ended June 30, 2016 and 2015
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 800,034
are treasury shares)
Adecoagro
S.A.
Condensed Consolidated Interim Statements
of Financial Position
as of June 30, 2016 and December 31, 2015
(All amounts in US$ thousands, except shares
and per share data and as otherwise indicated)
|
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
Note
|
|
2016
|
|
|
2015
|
|
|
|
|
|
(unaudited)
|
|
|
(revised – see
Note 2)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Non-Current Assets
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
6
|
|
|
830,705
|
|
|
|
696,889
|
|
Investment property
|
|
7
|
|
|
4,158
|
|
|
|
4,796
|
|
Intangible assets
|
|
8
|
|
|
17,778
|
|
|
|
16,661
|
|
Biological assets
|
|
9
|
|
|
7,818
|
|
|
|
6,476
|
|
Deferred income tax assets
|
|
18
|
|
|
41,906
|
|
|
|
68,744
|
|
Trade and other receivables
|
|
11
|
|
|
21,749
|
|
|
|
21,795
|
|
Other assets .
|
|
|
|
|
726
|
|
|
|
651
|
|
Total Non-Current Assets
|
|
|
|
|
924,840
|
|
|
|
816,012
|
|
Current Assets
|
|
|
|
|
|
|
|
|
|
|
Biological assets
|
|
9
|
|
|
126,748
|
|
|
|
105,342
|
|
Inventories
|
|
12
|
|
|
144,516
|
|
|
|
85,286
|
|
Trade and other receivables
|
|
11
|
|
|
195,612
|
|
|
|
145,011
|
|
Derivative financial instruments
|
|
10
|
|
|
7,346
|
|
|
|
4,849
|
|
Cash and cash equivalents
|
|
13
|
|
|
167,587
|
|
|
|
198,894
|
|
Total Current Assets
|
|
|
|
|
641,809
|
|
|
|
539,382
|
|
TOTAL ASSETS
|
|
|
|
|
1,566,649
|
|
|
|
1,355,394
|
|
SHAREHOLDERS EQUITY
|
|
|
|
|
|
|
|
|
|
|
Capital and reserves attributable to equity holders of the parent
|
|
|
|
|
|
|
|
|
|
|
Share capital
|
|
14
|
|
|
183,573
|
|
|
|
183,573
|
|
Share premium
|
|
14
|
|
|
941,222
|
|
|
|
937,674
|
|
Cumulative translation adjustment
|
|
|
|
|
(519,461
|
)
|
|
|
(568,316
|
)
|
Equity-settled compensation
|
|
|
|
|
15,071
|
|
|
|
16,631
|
|
Cash flow hedge
|
|
|
|
|
(71,940
|
)
|
|
|
(137,911
|
)
|
Treasury shares
|
|
|
|
|
(1,201
|
)
|
|
|
(1,936
|
)
|
Reserve from the sale of non-controlling interests in subsidiaries
|
|
|
|
|
41,574
|
|
|
|
41,574
|
|
Retained earnings
|
|
|
|
|
32,508
|
|
|
|
48,795
|
|
Equity attributable to equity holders of the parent
|
|
|
|
|
621,346
|
|
|
|
520,084
|
|
Non-controlling interest
|
|
|
|
|
7,693
|
|
|
|
7,335
|
|
TOTAL SHAREHOLDERS EQUITY
|
|
|
|
|
629,039
|
|
|
|
527,419
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
Non-Current Liabilities
|
|
|
|
|
|
|
|
|
|
|
Trade and other payables
|
|
16
|
|
|
1,457
|
|
|
|
1,911
|
|
Borrowings
|
|
17
|
|
|
494,201
|
|
|
|
483,651
|
|
Deferred income tax liabilities
|
|
18
|
|
|
14,140
|
|
|
|
15,636
|
|
Payroll and social security liabilities
|
|
19
|
|
|
1,069
|
|
|
|
1,236
|
|
Derivatives financial instruments
|
|
10
|
|
|
-
|
|
|
|
119
|
|
Provisions for other liabilities
|
|
|
|
|
1,781
|
|
|
|
1,653
|
|
Total Non-Current Liabilities
|
|
|
|
|
512,648
|
|
|
|
504,206
|
|
Current Liabilities
|
|
|
|
|
|
|
|
|
|
|
Trade and other payables
|
|
16
|
|
|
65,843
|
|
|
|
53,731
|
|
Current income tax liabilities
|
|
|
|
|
2,645
|
|
|
|
962
|
|
Payroll and social security liabilities
|
|
19
|
|
|
26,027
|
|
|
|
22,153
|
|
Borrowings
|
|
17
|
|
|
296,856
|
|
|
|
239,688
|
|
Derivative financial instruments
|
|
10
|
|
|
31,938
|
|
|
|
6,575
|
|
Provisions for other liabilities
|
|
|
|
|
1,653
|
|
|
|
660
|
|
Total Current Liabilities
|
|
|
|
|
424,962
|
|
|
|
323,769
|
|
TOTAL LIABILITIES
|
|
|
|
|
937,610
|
|
|
|
827,975
|
|
TOTAL SHAREHOLDERS EQUITY AND LIABILITIES
|
|
|
|
|
1,566,649
|
|
|
|
1,355,394
|
|
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 six-month periods ended June 30,
2016 and 2015
(All amounts in US$ thousands, except shares
and per share data and as otherwise indicated)
|
|
|
|
Six-months
ended June 30
|
|
|
Three-months
ended June 30
|
|
|
|
Note
|
|
2016
|
|
|
2015
(revised –
see Note 2)
|
|
|
2016
|
|
|
2015
(revised –
see Note 2)
|
|
|
|
|
|
(unaudited)
|
|
Sales of manufactured products and services rendered
|
|
21
|
|
|
210,814
|
|
|
|
198,454
|
|
|
|
115,693
|
|
|
|
113,974
|
|
Cost of manufactured products sold and services rendered
|
|
22
|
|
|
(158,538
|
)
|
|
|
(156,020
|
)
|
|
|
(85,878
|
)
|
|
|
(88,459
|
)
|
Gross Profit from Manufacturing Activities
|
|
|
|
|
52,276
|
|
|
|
42,434
|
|
|
|
29,815
|
|
|
|
25,515
|
|
Sales of agricultural produce and biological assets
|
|
21
|
|
|
79,890
|
|
|
|
86,690
|
|
|
|
53,527
|
|
|
|
56,952
|
|
Cost of agricultural produce sold and direct agricultural selling expenses
|
|
22
|
|
|
(79,890
|
)
|
|
|
(86,690
|
)
|
|
|
(53,527
|
)
|
|
|
(56,952
|
)
|
Initial recognition and changes in fair value of biological assets and agricultural produce
|
|
9
|
|
|
83,494
|
|
|
|
18,333
|
|
|
|
57,661
|
|
|
|
16,636
|
|
Changes in net realizable value of agricultural produce after harvest
|
|
|
|
|
(369
|
)
|
|
|
3,898
|
|
|
|
(3,028
|
)
|
|
|
4,060
|
|
Gross Profit from Agricultural Activities
|
|
|
|
|
83,125
|
|
|
|
22,231
|
|
|
|
54,633
|
|
|
|
20,696
|
|
Margin on Manufacturing and Agricultural Activities Before Operating Expenses
|
|
|
|
|
135,401
|
|
|
|
64,665
|
|
|
|
84,448
|
|
|
|
46,211
|
|
General and administrative expenses
|
|
22
|
|
|
(21,610
|
)
|
|
|
(23,485
|
)
|
|
|
(11,306
|
)
|
|
|
(11,467
|
)
|
Selling expenses
|
|
22
|
|
|
(27,165
|
)
|
|
|
(31,032
|
)
|
|
|
(16,129
|
)
|
|
|
(17,777
|
)
|
Other operating income / (expense), net
|
|
24
|
|
|
(34,161
|
)
|
|
|
15,607
|
|
|
|
(34,219
|
)
|
|
|
(6,018
|
)
|
Share of loss of joint ventures
|
|
|
|
|
-
|
|
|
|
(1,470
|
)
|
|
|
-
|
|
|
|
(592
|
)
|
Profit from Operations Before Financing and Taxation
|
|
|
|
|
52,465
|
|
|
|
24,285
|
|
|
|
22,794
|
|
|
|
10,357
|
|
Finance income
|
|
25
|
|
|
5,071
|
|
|
|
5,670
|
|
|
|
926
|
|
|
|
2,379
|
|
Finance costs
|
|
25
|
|
|
(67,918
|
)
|
|
|
(44,604
|
)
|
|
|
(39,205
|
)
|
|
|
(16,821
|
)
|
Financial results, net
|
|
25
|
|
|
(62,847
|
)
|
|
|
(38,934
|
)
|
|
|
(38,279
|
)
|
|
|
(14,442
|
)
|
Loss Before Income Tax
|
|
|
|
|
(10,382
|
)
|
|
|
(14,649
|
)
|
|
|
(15,485
|
)
|
|
|
(4,085
|
)
|
Income tax (expense)/ benefit
|
|
18
|
|
|
(4,616
|
)
|
|
|
3,816
|
|
|
|
(2,265
|
)
|
|
|
(1,174
|
)
|
Loss for the Period
|
|
|
|
|
(14,998
|
)
|
|
|
(10,833
|
)
|
|
|
(17,750
|
)
|
|
|
(5,259
|
)
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the parent
|
|
|
|
|
(16,385
|
)
|
|
|
(11,657
|
)
|
|
|
(17,985
|
)
|
|
|
(5,149
|
)
|
Non-controlling interest
|
|
|
|
|
1,387
|
|
|
|
824
|
|
|
|
235
|
|
|
|
(110
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share Attributable to the equity holders of the parent during the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
(0,135
|
)
|
|
|
(0.097
|
)
|
|
|
(0,148
|
)
|
|
|
(0.043
|
)
|
Diluted
|
|
|
|
|
(0,135
|
)
|
|
|
(0.097
|
)
|
|
|
(0,148
|
)
|
|
|
(0.043
|
)
|
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 six-month periods ended June 30,
2016 and 2015
(All amounts in US$ thousands, except shares
and per share data and as otherwise indicated)
|
|
Six-months
ended June 30
|
|
|
Three-months
ended June 30
|
|
|
|
2016
|
|
|
2015
(revised –
see Note 2)
|
|
|
2016
|
|
|
2015
(revised –
see Note 2)
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the Period
|
|
|
(14,998
|
)
|
|
|
(10,833
|
)
|
|
|
(17,750
|
)
|
|
|
(5,259
|
)
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences on translating foreign operations
|
|
|
47,826
|
|
|
|
(71,467
|
)
|
|
|
33,270
|
|
|
|
5,771
|
|
Cash flow hedge
|
|
|
65,971
|
|
|
|
(29,460
|
)
|
|
|
40,117
|
|
|
|
12,432
|
|
Other comprehensive income / (loss) for the period
|
|
|
113,797
|
|
|
|
(100,927
|
)
|
|
|
73,387
|
|
|
|
18,203
|
|
Total comprehensive income / (loss) for the period
|
|
|
98,799
|
|
|
|
(111,760
|
)
|
|
|
55,637
|
|
|
|
12,944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the parent
|
|
|
98,441
|
|
|
|
(112,036
|
)
|
|
|
55,584
|
|
|
|
13,354
|
|
Non-controlling interest
|
|
|
358
|
|
|
|
276
|
|
|
|
53
|
|
|
|
(410
|
)
|
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 six-month periods ended June 30,
2016 and 2015
(All amounts in US$ thousands, except shares
and per share data and as otherwise indicated)
|
|
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
|
|
Changes in Accounting Standard (see Note 2)
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,756
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8,598
|
|
|
|
6,842
|
|
|
|
-
|
|
|
|
6,842
|
|
Revised total equity at the beginning of the
financial year
|
|
|
183,573
|
|
|
|
933,044
|
|
|
|
(397,560
|
)
|
|
|
16,735
|
|
|
|
(43,064
|
)
|
|
|
(2,840
|
)
|
|
|
25,508
|
|
|
|
54,242
|
|
|
|
769,638
|
|
|
|
7,589
|
|
|
|
777,227
|
|
Loss for the period
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(11,657
|
)
|
|
|
(11,657
|
)
|
|
|
824
|
|
|
|
(10,833
|
)
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Items that
may be reclassified subsequently to profit or loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences on translating foreign
operations
|
|
|
-
|
|
|
|
-
|
|
|
|
(70,919
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(70,919
|
)
|
|
|
(548
|
)
|
|
|
(71,467
|
)
|
Cash flow hedge (*)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(29,460
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(29,460
|
)
|
|
|
-
|
|
|
|
(29,460
|
)
|
Other comprehensive income for the period
|
|
|
-
|
|
|
|
-
|
|
|
|
(70,919
|
)
|
|
|
-
|
|
|
|
(29,460
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(100,379
|
)
|
|
|
(548
|
)
|
|
|
(100,927
|
)
|
Total comprehensive income for the period
|
|
|
-
|
|
|
|
-
|
|
|
|
(70,919
|
)
|
|
|
-
|
|
|
|
(29,460
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(11,657
|
)
|
|
|
(112,036
|
)
|
|
|
276
|
|
|
|
(111,760
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee share options (Note 15)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Value of employee services
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
- Exercised
|
|
|
-
|
|
|
|
1,378
|
|
|
|
-
|
|
|
|
(468
|
)
|
|
|
-
|
|
|
|
249
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,159
|
|
|
|
-
|
|
|
|
1,159
|
|
- Forfeited
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(104
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
104
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Restricted shares (Note 15):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Value of employee services
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,985
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,985
|
|
|
|
-
|
|
|
|
1,985
|
|
- Vested
|
|
|
-
|
|
|
|
3,103
|
|
|
|
-
|
|
|
|
(3,751
|
)
|
|
|
-
|
|
|
|
648
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
- Forfeited
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Balance at June 30, 2015
(revised and unaudited)
|
|
|
183,573
|
|
|
|
937,525
|
|
|
|
(468,479
|
)
|
|
|
14,397
|
|
|
|
(72,524
|
)
|
|
|
(1,943
|
)
|
|
|
25,508
|
|
|
|
42,689
|
|
|
|
660,746
|
|
|
|
7,865
|
|
|
|
668,611
|
|
(*) Net of 15,296 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 six-month periods ended June 30,
2016 and 2015 (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, 2016
|
|
|
183,573
|
|
|
|
937,674
|
|
|
|
(567,133
|
)
|
|
|
16,631
|
|
|
|
(137,911
|
)
|
|
|
(1,936
|
)
|
|
|
41,574
|
|
|
|
62,923
|
|
|
|
535,395
|
|
|
|
7,335
|
|
|
|
542,730
|
|
Changes in Accounting Standard (see Note 2)
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,183
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(14,128
|
)
|
|
|
(15,311
|
)
|
|
|
-
|
|
|
|
(15,311
|
)
|
Revised total equity at the beginning of the
financial year
|
|
|
183,573
|
|
|
|
937,674
|
|
|
|
(568,316
|
)
|
|
|
16,631
|
|
|
|
(137,911
|
)
|
|
|
(1,936
|
)
|
|
|
41,574
|
|
|
|
48,795
|
|
|
|
520,084
|
|
|
|
7,335
|
|
|
|
527,419
|
|
Loss for the period
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(16,385
|
)
|
|
|
(16,385
|
)
|
|
|
1,387
|
|
|
|
(14,998
|
)
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Items that
may be reclassified subsequently to profit or loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences on translating foreign
operations
|
|
|
-
|
|
|
|
|
|
|
|
48,855
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
48,855
|
|
|
|
(1,029
|
)
|
|
|
47,826
|
|
Cash flow hedge (*)
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
65,971
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
65,971
|
|
|
|
-
|
|
|
|
65,971
|
|
Other comprehensive income for the period
|
|
|
-
|
|
|
|
|
|
|
|
48,855
|
|
|
|
-
|
|
|
|
65,971
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
114,826
|
|
|
|
(1,029
|
)
|
|
|
113,797
|
|
Total comprehensive income for the period
|
|
|
-
|
|
|
|
|
|
|
|
48,855
|
|
|
|
-
|
|
|
|
65,971
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(16,385
|
)
|
|
|
98,441
|
|
|
|
358
|
|
|
|
98,799
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee share options (Note 15)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Value of employee services
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
- Exercised
|
|
|
-
|
|
|
|
323
|
|
|
|
-
|
|
|
|
(102
|
)
|
|
|
-
|
|
|
|
55
|
|
|
|
-
|
|
|
|
-
|
|
|
|
276
|
|
|
|
-
|
|
|
|
276
|
|
- Forfeited
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(98
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
98
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Restricted shares (Note 15):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
- Value of employee services
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,545
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,545
|
|
|
|
-
|
|
|
|
2,545
|
|
- Vested
|
|
|
-
|
|
|
|
3,225
|
|
|
|
-
|
|
|
|
(3,905
|
)
|
|
|
-
|
|
|
|
680
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
- Forfeited
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Balance at June 30, 2016 (unaudited)
|
|
|
183,573
|
|
|
|
941,222
|
|
|
|
(519,461
|
)
|
|
|
15,071
|
|
|
|
(71,940
|
)
|
|
|
(1,201
|
)
|
|
|
41,574
|
|
|
|
32,508
|
|
|
|
621,346
|
|
|
|
7,693
|
|
|
|
629,039
|
|
(*) Net of 34,145 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 six-month periods ended June 30,
2016 and 2015
(All amounts in US$ thousands, except shares
and per share data and as otherwise indicated)
|
|
Note
|
|
June
30,
2016
|
|
|
June
30,
2015
(revised)
|
|
|
|
|
|
(unaudited)
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period
|
|
|
|
|
(14,998
|
)
|
|
|
(10,833
|
)
|
Adjustments for:
|
|
|
|
|
|
|
|
|
|
|
Income tax expense/(benefit)
|
|
18
|
|
|
4,616
|
|
|
|
(3,816
|
)
|
Depreciation
|
|
22
|
|
|
41,592
|
|
|
|
43,232
|
|
Amortization
|
|
22
|
|
|
313
|
|
|
|
295
|
|
Gain from of disposal of other property items
|
|
24
|
|
|
(181
|
)
|
|
|
(880
|
)
|
Equity settled share-based compensation granted
|
|
23
|
|
|
2,545
|
|
|
|
1,985
|
|
(Gain)/loss from derivative financial instruments and forwards
|
|
24, 25
|
|
|
41,121
|
|
|
|
(15,306
|
)
|
Interest and other expense, net
|
|
25
|
|
|
18,940
|
|
|
|
20,640
|
|
Initial recognition and changes in fair value of non harvested biological assets (unrealized)
|
|
|
|
|
(49,592
|
)
|
|
|
(897
|
)
|
Changes in net realizable value of agricultural produce after harvest (unrealized)
|
|
|
|
|
1,542
|
|
|
|
(1,080
|
)
|
Provision and allowances
|
|
|
|
|
48
|
|
|
|
860
|
|
Share of loss from joint venture
|
|
|
|
|
-
|
|
|
|
1,470
|
|
Foreign exchange gains, net
|
|
26
|
|
|
12,276
|
|
|
|
9,653
|
|
Cash flow hedge – transfer from equity
|
|
26
|
|
|
23,594
|
|
|
|
7,754
|
|
Subtotal
|
|
|
|
|
81,816
|
|
|
|
53,077
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
(Increase)/decrease in trade and other receivables
|
|
|
|
|
(43,937
|
)
|
|
|
7,426
|
|
Increase in inventories
|
|
|
|
|
(37,455
|
)
|
|
|
(54,169
|
)
|
Decrease in biological assets
|
|
|
|
|
15,538
|
|
|
|
38,131
|
|
Increase/(decrease) in other assets
|
|
|
|
|
(60
|
)
|
|
|
12
|
|
Increase /(decrease) in derivative financial instruments
|
|
|
|
|
(19,623
|
)
|
|
|
25,805
|
|
Increase/(decrease) in trade and other payables
|
|
|
|
|
11,511
|
|
|
|
(26,962
|
)
|
Increase in payroll and social security liabilities
|
|
|
|
|
1,243
|
|
|
|
1,964
|
|
Increase/(decrease) in provisions for other liabilities
|
|
|
|
|
1,640
|
|
|
|
(241
|
)
|
Net cash generated in operating activities before interest and taxes paid
|
|
|
|
|
10,673
|
|
|
|
45,043
|
|
Income tax paid
|
|
|
|
|
(911
|
)
|
|
|
(152
|
)
|
Net cash generated from operating activities
|
|
|
|
|
9,762
|
|
|
|
44,891
|
|
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 six-month periods ended June 30,
2016 and 2015 (continued)
(All amounts in US$ thousands, except shares
and per share data and as otherwise indicated)
|
|
Note
|
|
June
30,
2016
|
|
|
June
30,
2015
(revised)
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
|
|
|
(60,034
|
)
|
|
|
(93,151
|
)
|
Purchases of intangible assets
|
|
8
|
|
|
(804
|
)
|
|
|
(811
|
)
|
Interest received
|
|
26
|
|
|
4,621
|
|
|
|
4,906
|
|
Proceeds from sale of property, plant and equipment
|
|
|
|
|
754
|
|
|
|
424
|
|
Loans to joint venture
|
|
|
|
|
-
|
|
|
|
(7,912
|
)
|
Net cash used in investing activities
|
|
|
|
|
(55,463
|
)
|
|
|
(96,544
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
Proceeds from equity settled share-based compensation exercised
|
|
|
|
|
276
|
|
|
|
1,177
|
|
Proceeds from long-term borrowings
|
|
|
|
|
42,701
|
|
|
|
166,874
|
|
Payments of long-term borrowings
|
|
|
|
|
(69,514
|
)
|
|
|
(48,928
|
)
|
Proceeds from short-term borrowings
|
|
|
|
|
147,496
|
|
|
|
37,378
|
|
Payment of short-term borrowings
|
|
|
|
|
(94,929
|
)
|
|
|
(19,689
|
)
|
Payment of derivatives financial instruments
|
|
|
|
|
(1,213
|
)
|
|
|
-
|
|
Interest paid
|
|
|
|
|
(20,504
|
)
|
|
|
(20,256
|
)
|
Net cash generated from financing activities
|
|
|
|
|
4,313
|
|
|
|
116,556
|
|
Net increase/decrease in cash and cash equivalents
|
|
|
|
|
(41,388
|
)
|
|
|
64,903
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
|
198,894
|
|
|
|
113,795
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
|
10,081
|
|
|
|
(15,232
|
)
|
Cash and cash equivalents at end of period
|
|
|
|
|
167,587
|
|
|
|
163,466
|
|
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 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 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 interim financial
statements have been approved for issue by the Board of Directors on August 9, 2016.
|
2.
|
Basis of preparation and presentation
|
The information presented
in the accompanying interim financial statements as of June 30, 2016 and for the six-month periods ended June 30, 2016 and 2015
is unaudited and in the opinion of management reflect all adjustments necessary to present fairly the financial position of the
Group as of June 30, 2016, results of operations and cash flows for the six-month periods ended June 30, 2016 and 2015. 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 December 31, 2015, 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 Group’s
annual consolidated financial statements for the year ended December 31, 2015, except for the changes in accounting policies explained
below.
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.
Changes in accounting policies
As explained in note
2 below, the group has adopted the amendments made to IAS 16 Property, Plant and Equipment and IAS 41 Agriculture in relation to
bearer plants this year. These amendments have resulted in changes in accounting policies and adjustments to the amounts recognized
in the financial statements.
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)
|
(a)
Bearer plants
In June 2014, the IASB
made amendments to IAS 16 Property, Plant and Equipment and IAS 41 Agriculture which distinguish bearer plants from other biological
assets. Bearer plants are solely used to grow produce over their productive lives and are seen to be similar to an item of machinery.
They will therefore now be accounted for under IAS 16. However, agricultural produce growing on bearer plants will remain within
the scope of IAS 41 and continue to be measured at fair value less cost to sell.
The Group’s sugarcane
qualify as bearer plants under the new definition in IAS 41. As required under IAS 8, the change in accounting policy has been
applied retrospectively. As a consequence, the sugarcane planting and coffee plantations were reclassified to property, plant and
equipment and measured at amortized cost, effective January 1, 2016 and comparative figures have been retrospectively revised accordingly.
Sugarcane planting are depreciated on straight-line basis over their useful life which was reassessed from 5 to 6 years as from
January 1, 2016.
As permitted under the
transitional rules, the fair value of the sugarcane as of January 1, 2014 was deemed to be their cost going forward. The difference
between the fair value and the previous carrying amount of was recognized in retained earnings on transition.
However, agricultural
produce growing on sugarcane and coffee plantations will remain under the line biological asset and continue to be measured at
fair value less cost to sell.
(b) Impact on financial
statements
As a result of the changes
in the entity’s accounting policies, prior year financial statements had to be revised. The following tables show the adjustments
recognized for each individual line item. Line items that were not affected by the change have not been included. As a result,
the sub-totals and totals disclosed cannot be recalculated from the numbers provided. As permitted under the transitional rules,
the impact on the current period is not disclosed.
Statements of Income (extracts)
|
|
|
|
June
30, 2015
(Previously
stated)
|
|
|
Increase/
(Decrease)
|
|
|
June
30, 2015
(Revised)
|
|
Cost of manufactured products sold and services rendered
|
|
|
(132,348
|
)
|
|
|
(23,672
|
)
|
|
|
(156,020
|
)
|
Initial recognition and changes in fair value of biological assets and agricultural produce
|
|
|
33,948
|
|
|
|
(15,615
|
)
|
|
|
18,333
|
|
Profit / (Loss) before income tax
|
|
|
24,638
|
|
|
|
(39,287
|
)
|
|
|
(14,649
|
)
|
Income tax (expense) / benefit
|
|
|
(9,542
|
)
|
|
|
13,358
|
|
|
|
3,816
|
|
Profit / (Loss) for the period
|
|
|
15,096
|
|
|
|
(25,929
|
)
|
|
|
(10,833
|
)
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the parent
|
|
|
14,272
|
|
|
|
(25,929
|
)
|
|
|
(11,657
|
)
|
Non-controlling interests
|
|
|
824
|
|
|
|
-
|
|
|
|
824
|
|
|
|
|
15,096
|
|
|
|
(25,929
|
)
|
|
|
(10,833
|
)
|
Basic earnings per share
|
|
|
0,118
|
|
|
|
(0,215
|
)
|
|
|
(0,097
|
)
|
Diluted earnings per share
|
|
|
0,117
|
|
|
|
(0,214
|
)
|
|
|
(0,097
|
)
|
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)
|
Statement of Financial Position (extracts)
|
|
|
|
31
December
2015 (Prev.
stated)
|
|
|
Increase/
(Decrease)
|
|
|
31
December
2015 (Revised)
|
|
Property, plant and equipment
|
|
|
540,218
|
|
|
|
156,671
|
|
|
|
696,889
|
|
Biological assets
|
|
|
299,270
|
|
|
|
(187,452
|
)
|
|
|
111,818
|
|
Inventories
|
|
|
77,703
|
|
|
|
7,583
|
|
|
|
85,286
|
|
Deferred tax assets
|
|
|
60,857
|
|
|
|
7,887
|
|
|
|
68,744
|
|
Total assets
|
|
|
978,048
|
|
|
|
(15,311
|
)
|
|
|
962,737
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained earnings
|
|
|
62,923
|
|
|
|
(14,128
|
)
|
|
|
48,795
|
|
Cumulative Translation Adjustment
|
|
|
(567,133
|
)
|
|
|
(1,183
|
)
|
|
|
(568,316
|
)
|
Total equity
|
|
|
(504,210
|
)
|
|
|
(15,311
|
)
|
|
|
(519,521
|
)
|
During the six months
ended June 30, 2016, the IASB did not publish new standards that would have a material impact on the Group when they become effective.
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 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, 2015 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 six month period
ended June 30, 2016. 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 Group’s net monetary position broken down by various currencies for each functional currency in which the Group
operates at June 30, 2016. All amounts are shown in US dollars.
|
|
June 30, 2016
|
|
|
|
(unaudited)
|
|
|
|
Functional
currency
|
|
Net
monetary position
(Liability)/ Asset
|
|
Argentine
Peso
|
|
|
Brazilian
Reais
|
|
|
Uruguayan
Peso
|
|
|
US
Dollar
|
|
|
Total
|
|
Argentine Peso
|
|
|
(9,734
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(9,734
|
)
|
Brazilian Reais
|
|
|
-
|
|
|
|
(190,574
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(190,574
|
)
|
US Dollar
|
|
|
(79,595
|
)
|
|
|
(439,911
|
)
|
|
|
14,388
|
|
|
|
93,544
|
|
|
|
(411,574
|
)
|
Uruguayan Peso
|
|
|
-
|
|
|
|
-
|
|
|
|
(292
|
)
|
|
|
-
|
|
|
|
(292
|
)
|
Total
|
|
|
(89,329
|
)
|
|
|
(630,485
|
)
|
|
|
14,096
|
|
|
|
93,544
|
|
|
|
(612,174
|
)
|
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 June 30, 2016 would have decreased 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. A portion of
this effect would be recognized as other comprehensive income since a portion of the Company’s 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).
|
|
June 30, 2016
|
|
|
|
(unaudited)
|
|
|
|
Functional
currency
|
|
Net
monetary position
|
|
Argentine
Peso
|
|
|
Brazilian
Reais
|
|
|
Uruguayan
Peso
|
|
|
US
Dollar
|
|
|
Total
|
|
US Dollar
|
|
|
(7,960
|
)
|
|
|
(43,991
|
)
|
|
|
1,439
|
|
|
|
-
|
|
|
|
(50,512
|
)
|
(Decrease) or increase in Profit Before Income Tax
|
|
|
(7,960
|
)
|
|
|
(43,991
|
)
|
|
|
1,439
|
|
|
|
-
|
|
|
|
(50,512
|
)
|
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 Group expects that the cash
flows will occur and affect profit or loss between 2016 and 2020.
For the period ended
June 30, 2016, a total amount before income tax of US$ 76,522 gain was recognized in other comprehensive income and an amount of
US$ 23,594 loss 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 Group’s fixed-rate and floating-rate borrowings per currency denomination and functional currency
of the subsidiary issuing the loans (excluding finance leases) at June 30, 2016 (all amounts are shown in US dollars):
|
|
June 30, 2016
|
|
|
|
(unaudited)
|
|
|
|
Functional
currency
|
|
Rate
per currency denomination
|
|
Argentine
Peso
|
|
|
Brazilian
Reais
|
|
|
Uruguayan
Peso
|
|
|
Total
|
|
Fixed rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Argentine Peso
|
|
|
7,188
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7,188
|
|
Brazilian Reais
|
|
|
-
|
|
|
|
168,510
|
|
|
|
-
|
|
|
|
168,510
|
|
US Dollar
|
|
|
89,011
|
|
|
|
17,022
|
|
|
|
18,001
|
|
|
|
124,034
|
|
Subtotal Fixed-rate borrowings
|
|
|
96,199
|
|
|
|
185,532
|
|
|
|
18,001
|
|
|
|
299,732
|
|
Variable rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazilian Reais
|
|
|
-
|
|
|
|
54,271
|
|
|
|
-
|
|
|
|
54,271
|
|
US Dollar
|
|
|
6,587
|
|
|
|
430,361
|
|
|
|
-
|
|
|
|
436,948
|
|
Subtotal Variable-rate borrowings
|
|
|
6,587
|
|
|
|
484,632
|
|
|
|
-
|
|
|
|
491,219
|
|
Total borrowings as per analysis
|
|
|
102,786
|
|
|
|
670,164
|
|
|
|
18,001
|
|
|
|
790,951
|
|
Finance leases
|
|
|
106
|
|
|
|
-
|
|
|
|
-
|
|
|
|
106
|
|
Total borrowings at June 30, 2016
|
|
|
102,892
|
|
|
|
670,164
|
|
|
|
18,001
|
|
|
|
791,057
|
|
At June 30, 2016, 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 increase as follows:
|
|
June 30, 2016
|
|
|
|
(unaudited)
|
|
|
|
Functional currency
|
|
Rate per currency denomination
|
|
Argentine
Peso
|
|
|
Brazilian
Reais
|
|
|
Uruguayan
Peso
|
|
|
Total
|
|
Variable rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazilian Reais
|
|
|
-
|
|
|
|
(543
|
)
|
|
|
-
|
|
|
|
(543
|
)
|
US Dollar
|
|
|
(66
|
)
|
|
|
(4,304
|
)
|
|
|
-
|
|
|
|
(4,370
|
)
|
Decrease in Profit Before Income Tax
|
|
|
(66
|
)
|
|
|
(4,847
|
)
|
|
|
-
|
|
|
|
(4,913
|
)
|
As of June 30, 2016,
4 banks accounted for more than 92% 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 June 30, 2016:
|
|
June
30, 2016
|
|
Type
of
derivative contract
|
|
Quantities
(thousands)
(**)
|
|
|
Notional
amount
|
|
|
Market
Value Asset/
(Liability)
|
|
|
Profit
/ (Loss)
(*)
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
Futures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corn
|
|
|
233
|
|
|
|
36,529
|
|
|
|
1,947
|
|
|
|
1,816
|
|
Soybean
|
|
|
163
|
|
|
|
52,750
|
|
|
|
(12,441
|
)
|
|
|
(12,441
|
)
|
Sugar
|
|
|
86,413
|
|
|
|
33,801
|
|
|
|
(3,530
|
)
|
|
|
(685
|
)
|
Ethanol
|
|
|
1,500
|
|
|
|
674
|
|
|
|
33
|
|
|
|
37
|
|
OTC:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sugar
|
|
|
10,160
|
|
|
|
(2,307
|
)
|
|
|
(2,208
|
)
|
|
|
100
|
|
Options:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buy put
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corn
|
|
|
23
|
|
|
|
419
|
|
|
|
521
|
|
|
|
101
|
|
Sugar
|
|
|
25,121
|
|
|
|
3,854
|
|
|
|
2,380
|
|
|
|
(603
|
)
|
Sell call
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Soybean
|
|
|
11
|
|
|
|
(180
|
)
|
|
|
(548
|
)
|
|
|
(368
|
)
|
Sugar
|
|
|
61,366
|
|
|
|
2,450
|
|
|
|
(5,150
|
)
|
|
|
(2,223
|
)
|
Sell put
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sugar
|
|
|
5,486
|
|
|
|
386
|
|
|
|
(331
|
)
|
|
|
(149
|
)
|
Buy call
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Soybean
|
|
|
(29
|
)
|
|
|
1,135
|
|
|
|
1,603
|
|
|
|
468
|
|
Total
|
|
|
190,447
|
|
|
|
129,511
|
|
|
|
(17,724
|
)
|
|
|
(13,947
|
)
|
(*)
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 June 30, 2016,
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, 2015.
During the period ended
on June 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$ 8.2 million. The currency forward contracts had maturity dates
ranging between September 2015 and December 2015. The outstanding contracts resulted in the recognition of a gain amounting to
US$ 0.1 million in 2015.
During the period ended
June 30, 2016, 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$ 42.5 million. No contract of this kind was entered
in 2015. Those contracts entered in 2016 have maturity dates ranging between March 2016 and April 2017. The outstanding contracts
resulted in the recognition of a loss of US$ 7 million in 2016.
During the period ended
on June 2016, 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$ 33.2 million. The currency forward contracts maturity
date is February 2016 and June 2016. The outstanding contracts resulted in the recognition of a loss amounting to US$ 0.5 million
in 2016.
During the period ended
on June 2016, the Group entered into several currency forward contracts in order to hedge the fluctuation of the US Dollar against
Euro for a total notional amount of US$ 15.7 million. The currency forward contracts maturity date is September 2016 and December
2016. The outstanding contracts resulted in the recognition of US$ 0.1 million in 2016.
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,
2015 described in Note 4 except the change mentioned in Note 2.
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 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, 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 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 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 Group’s
investment in the joint venture CHS S.A. is allocated to the ‘Crops’ segment.
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’
.
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 six-month period
ended June 30, 2016
(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
|
|
|
602
|
|
|
|
44,649
|
|
|
|
541
|
|
|
|
545
|
|
|
|
46,337
|
|
|
|
164,477
|
|
|
|
-
|
|
|
|
-
|
|
|
|
210,814
|
|
Cost of manufactured products sold and services rendered
|
|
|
(514
|
)
|
|
|
(39,766
|
)
|
|
|
(507
|
)
|
|
|
(96
|
)
|
|
|
(40,883
|
)
|
|
|
(117,655
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(158,538
|
)
|
Gross Profit from Manufacturing Activities
|
|
|
88
|
|
|
|
4,883
|
|
|
|
34
|
|
|
|
449
|
|
|
|
5,454
|
|
|
|
46,822
|
|
|
|
-
|
|
|
|
-
|
|
|
|
52,276
|
|
Sales of agricultural produce and biological assets
|
|
|
67,495
|
|
|
|
907
|
|
|
|
11,488
|
|
|
|
-
|
|
|
|
79,890
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
79,890
|
|
Cost of agricultural produce sold and direct agricultural selling expenses
|
|
|
(67,495
|
)
|
|
|
(907
|
)
|
|
|
(11,488
|
)
|
|
|
-
|
|
|
|
(79,890
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(79,890
|
)
|
Initial recognition and changes in fair value of biological assets and agricultural produce
|
|
|
45,657
|
|
|
|
9,458
|
|
|
|
1,625
|
|
|
|
90
|
|
|
|
56,830
|
|
|
|
26,664
|
|
|
|
-
|
|
|
|
-
|
|
|
|
83,494
|
|
Changes in net realizable value of agricultural produce after harvest
|
|
|
(369
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(369
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
(369
|
)
|
Gross Profit from Agricultural Activities
|
|
|
45,288
|
|
|
|
9,458
|
|
|
|
1,625
|
|
|
|
90
|
|
|
|
56,461
|
|
|
|
26,664
|
|
|
|
-
|
|
|
|
-
|
|
|
|
83,125
|
|
Margin on Manufacturing and Agricultural Activities Before Operating Expenses
|
|
|
45,376
|
|
|
|
14,341
|
|
|
|
1,659
|
|
|
|
539
|
|
|
|
61,915
|
|
|
|
73,486
|
|
|
|
-
|
|
|
|
-
|
|
|
|
135,401
|
|
General and administrative expenses
|
|
|
(1,315
|
)
|
|
|
(1,433
|
)
|
|
|
(505
|
)
|
|
|
(141
|
)
|
|
|
(3,394
|
)
|
|
|
(8,541
|
)
|
|
|
-
|
|
|
|
(9,675
|
)
|
|
|
(21,610
|
)
|
Selling expenses
|
|
|
(2,440
|
)
|
|
|
(5,260
|
)
|
|
|
(341
|
)
|
|
|
(19
|
)
|
|
|
(8,060
|
)
|
|
|
(19,080
|
)
|
|
|
-
|
|
|
|
(25
|
)
|
|
|
(27,165
|
)
|
Other operating (loss)/income, net
|
|
|
(21,941
|
)
|
|
|
193
|
|
|
|
116
|
|
|
|
1
|
|
|
|
(21,631
|
)
|
|
|
(12,593
|
)
|
|
|
-
|
|
|
|
63
|
|
|
|
(34,161
|
)
|
Share of loss of joint ventures
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Profit / (loss) from Operations Before Financing and Taxation
|
|
|
19,680
|
|
|
|
7,841
|
|
|
|
929
|
|
|
|
380
|
|
|
|
28,830
|
|
|
|
33,272
|
|
|
|
-
|
|
|
|
(9,637
|
)
|
|
|
52,465
|
|
Depreciation and amortization
|
|
|
(676
|
)
|
|
|
(1,173
|
)
|
|
|
(490
|
)
|
|
|
(110
|
)
|
|
|
(2,449
|
)
|
|
|
(39,456
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(41,905
|
)
|
Initial recognition and changes in fair value of biological assets and agricultural produce (unrealized)
|
|
|
24,534
|
|
|
|
6,752
|
|
|
|
-
|
|
|
|
-
|
|
|
|
31,286
|
|
|
|
18,306
|
|
|
|
-
|
|
|
|
-
|
|
|
|
49,592
|
|
Initial recognition and changes in fair value of biological assets and agricultural produce (realized)
|
|
|
21,123
|
|
|
|
2,706
|
|
|
|
1,625
|
|
|
|
90
|
|
|
|
25,544
|
|
|
|
8,358
|
|
|
|
-
|
|
|
|
-
|
|
|
|
33,902
|
|
Changes in net realizable value of agricultural produce after harvest (unrealized)
|
|
|
(1,542
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,542
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,542
|
)
|
Changes in net realizable value of agricultural produce after harvest (realized)
|
|
|
1,173
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,173
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,173
|
|
Farmlands and farmland improvements, net
|
|
|
68,673
|
|
|
|
13,977
|
|
|
|
214
|
|
|
|
10,026
|
|
|
|
92,890
|
|
|
|
27,214
|
|
|
|
-
|
|
|
|
-
|
|
|
|
120,104
|
|
Machinery, equipment and other fixed assets, net
|
|
|
3,711
|
|
|
|
13,312
|
|
|
|
7,743
|
|
|
|
552
|
|
|
|
25,318
|
|
|
|
456,362
|
|
|
|
-
|
|
|
|
-
|
|
|
|
481,680
|
|
Bearer plants, net
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,887
|
|
|
|
1,887
|
|
|
|
208,024
|
|
|
|
-
|
|
|
|
-
|
|
|
|
209,911
|
|
Work in progress
|
|
|
1,344
|
|
|
|
2,278
|
|
|
|
929
|
|
|
|
-
|
|
|
|
4,551
|
|
|
|
14,459
|
|
|
|
-
|
|
|
|
-
|
|
|
|
19,010
|
|
Investment property
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,158
|
|
|
|
4,158
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,158
|
|
Goodwill
|
|
|
3,995
|
|
|
|
1,836
|
|
|
|
-
|
|
|
|
1,221
|
|
|
|
7,052
|
|
|
|
6,803
|
|
|
|
-
|
|
|
|
-
|
|
|
|
13,855
|
|
Biological assets
|
|
|
18,498
|
|
|
|
4,730
|
|
|
|
6,833
|
|
|
|
1,796
|
|
|
|
31,857
|
|
|
|
102,709
|
|
|
|
-
|
|
|
|
-
|
|
|
|
134,566
|
|
Inventories
|
|
|
51,935
|
|
|
|
32,575
|
|
|
|
2,706
|
|
|
|
-
|
|
|
|
87,216
|
|
|
|
57,300
|
|
|
|
-
|
|
|
|
-
|
|
|
|
144,516
|
|
Total segment assets
|
|
|
148,156
|
|
|
|
68,708
|
|
|
|
18,425
|
|
|
|
19,640
|
|
|
|
254,929
|
|
|
|
872,871
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,127,800
|
|
Borrowings
|
|
|
73,348
|
|
|
|
46,108
|
|
|
|
2,903
|
|
|
|
2,377
|
|
|
|
124,736
|
|
|
|
666,321
|
|
|
|
-
|
|
|
|
-
|
|
|
|
791,057
|
|
Total segment liabilities
|
|
|
73,348
|
|
|
|
46,108
|
|
|
|
2,903
|
|
|
|
2,377
|
|
|
|
124,736
|
|
|
|
666,321
|
|
|
|
-
|
|
|
|
-
|
|
|
|
791,057
|
|
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 six-month period
ended June 30, 2015 (revised and 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
|
|
|
431
|
|
|
|
48,679
|
|
|
|
754
|
|
|
|
662
|
|
|
|
50,526
|
|
|
|
147,928
|
|
|
|
-
|
|
|
|
-
|
|
|
|
198,454
|
|
Cost of manufactured products sold and services rendered
|
|
|
(262
|
)
|
|
|
(40,193
|
)
|
|
|
(884
|
)
|
|
|
(331
|
)
|
|
|
(41,670
|
)
|
|
|
(114,350
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(156,020
|
)
|
Gross Profit from Manufacturing Activities
|
|
|
169
|
|
|
|
8,486
|
|
|
|
(130
|
)
|
|
|
331
|
|
|
|
8,856
|
|
|
|
33,578
|
|
|
|
-
|
|
|
|
-
|
|
|
|
42,434
|
|
Sales of agricultural produce and biological assets
|
|
|
70,477
|
|
|
|
48
|
|
|
|
16,165
|
|
|
|
-
|
|
|
|
86,690
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
86,690
|
|
Cost of agricultural produce sold and direct agricultural selling expenses
|
|
|
(70,477
|
)
|
|
|
(48
|
)
|
|
|
(16,165
|
)
|
|
|
-
|
|
|
|
(86,690
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(86,690
|
)
|
Initial recognition and changes in fair value of biological assets and agricultural produce
|
|
|
15,473
|
|
|
|
3,755
|
|
|
|
4,178
|
|
|
|
(2
|
)
|
|
|
23,404
|
|
|
|
(5,071
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
18,333
|
|
Changes in net realizable value of agricultural produce after harvest
|
|
|
3,898
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,898
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,898
|
|
Gross Profit / (loss) from Agricultural Activities
|
|
|
19,371
|
|
|
|
3,755
|
|
|
|
4,178
|
|
|
|
(2
|
)
|
|
|
27,302
|
|
|
|
(5,071
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
22,231
|
|
Margin on Manufacturing and Agricultural Activities Before Operating Expenses
|
|
|
19,540
|
|
|
|
12,241
|
|
|
|
4,048
|
|
|
|
329
|
|
|
|
36,158
|
|
|
|
28,507
|
|
|
|
-
|
|
|
|
-
|
|
|
|
64,665
|
|
General and administrative expenses
|
|
|
(1,792
|
)
|
|
|
(1,618
|
)
|
|
|
(747
|
)
|
|
|
(41
|
)
|
|
|
(4,198
|
)
|
|
|
(10,152
|
)
|
|
|
-
|
|
|
|
(9,135
|
)
|
|
|
(23,485
|
)
|
Selling expenses
|
|
|
(2,751
|
)
|
|
|
(6,763
|
)
|
|
|
(346
|
)
|
|
|
(13
|
)
|
|
|
(9,873
|
)
|
|
|
(20,633
|
)
|
|
|
-
|
|
|
|
(526
|
)
|
|
|
(31,032
|
)
|
Other operating (loss)/income, net
|
|
|
1,480
|
|
|
|
601
|
|
|
|
(306
|
)
|
|
|
1
|
|
|
|
1,776
|
|
|
|
13,609
|
|
|
|
-
|
|
|
|
222
|
|
|
|
15,607
|
|
Share of loss of joint ventures
|
|
|
(1,470
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,470
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,470
|
)
|
Profit / (loss) from Operations Before Financing and Taxation
|
|
|
15,007
|
|
|
|
4,461
|
|
|
|
2,649
|
|
|
|
276
|
|
|
|
22,393
|
|
|
|
11,331
|
|
|
|
-
|
|
|
|
(9,439
|
)
|
|
|
24,285
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
(976
|
)
|
|
|
(1,561
|
)
|
|
|
(755
|
)
|
|
|
(151
|
)
|
|
|
(3,443
|
)
|
|
|
(40,084
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(43,527
|
)
|
Initial recognition and changes in fair value of biological assets and agricultural produce (unrealized)
|
|
|
7,492
|
|
|
|
2,726
|
|
|
|
-
|
|
|
|
120
|
|
|
|
10,338
|
|
|
|
(9,441
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
897
|
|
Initial recognition and changes in fair value of biological assets and agricultural produce (realized)
|
|
|
7,981
|
|
|
|
1,029
|
|
|
|
4,178
|
|
|
|
(122
|
)
|
|
|
13,066
|
|
|
|
4,370
|
|
|
|
-
|
|
|
|
-
|
|
|
|
17,436
|
|
Changes in net realizable value of agricultural produce after harvest (unrealized)
|
|
|
1,080
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,080
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,080
|
|
Changes in net realizable value of agricultural produce after harvest (realized)
|
|
|
2,818
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,818
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,818
|
|
As of December 31,2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Farmlands and farmland improvements, net
|
|
|
75,702
|
|
|
|
16,053
|
|
|
|
289
|
|
|
|
5,265
|
|
|
|
97,309
|
|
|
|
22,359
|
|
|
|
-
|
|
|
|
-
|
|
|
|
119,668
|
|
Machinery, equipment and other fixed assets, net
|
|
|
3,853
|
|
|
|
14,367
|
|
|
|
9,422
|
|
|
|
611
|
|
|
|
28,253
|
|
|
|
369,184
|
|
|
|
-
|
|
|
|
-
|
|
|
|
397,437
|
|
Bearer plants, net
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,552
|
|
|
|
1,552
|
|
|
|
155,119
|
|
|
|
-
|
|
|
|
-
|
|
|
|
156,671
|
|
Work in progress
|
|
|
935
|
|
|
|
5,604
|
|
|
|
495
|
|
|
|
-
|
|
|
|
7,034
|
|
|
|
16,079
|
|
|
|
-
|
|
|
|
-
|
|
|
|
23,113
|
|
Investment property
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,796
|
|
|
|
4,796
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,796
|
|
Goodwill
|
|
|
4,609
|
|
|
|
2,117
|
|
|
|
-
|
|
|
|
1,192
|
|
|
|
7,918
|
|
|
|
5,592
|
|
|
|
-
|
|
|
|
-
|
|
|
|
13,510
|
|
Biological assets
|
|
|
22,536
|
|
|
|
23,131
|
|
|
|
6,786
|
|
|
|
288
|
|
|
|
52,741
|
|
|
|
59,077
|
|
|
|
-
|
|
|
|
-
|
|
|
|
111,818
|
|
Inventories
|
|
|
27,770
|
|
|
|
13,584
|
|
|
|
1,741
|
|
|
|
-
|
|
|
|
43,095
|
|
|
|
42,191
|
|
|
|
-
|
|
|
|
-
|
|
|
|
85,286
|
|
Total segment assets
|
|
|
135,405
|
|
|
|
74,856
|
|
|
|
18,733
|
|
|
|
13,704
|
|
|
|
242,698
|
|
|
|
669,601
|
|
|
|
-
|
|
|
|
-
|
|
|
|
912,299
|
|
Borrowings
|
|
|
54,321
|
|
|
|
24,932
|
|
|
|
5,318
|
|
|
|
1,273
|
|
|
|
85,844
|
|
|
|
637,495
|
|
|
|
-
|
|
|
|
-
|
|
|
|
723,339
|
|
Total segment liabilities
|
|
|
54,321
|
|
|
|
24,932
|
|
|
|
5,318
|
|
|
|
1,273
|
|
|
|
85,844
|
|
|
|
637,495
|
|
|
|
-
|
|
|
|
-
|
|
|
|
723,339
|
|
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 Group’s property, plant
and equipment in the six-month periods ended June 30, 2016 and 2015 were as follows:
|
|
Farmlands
|
|
|
Farmland
improvements
|
|
|
Buildings
and
facilities
|
|
|
Machinery,
equipment,
furniture and
Fittings
|
|
|
Bearer
plants
|
|
|
Others
|
|
|
Work
in
progress
|
|
|
Total
|
|
Six-month period ended June 30, 2015
(revised)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opening net book amount.
|
|
|
174,420
|
|
|
|
5,401
|
|
|
|
194,771
|
|
|
|
277,586
|
|
|
|
214,677
|
|
|
|
4,551
|
|
|
|
120,176
|
|
|
|
991,582
|
|
Exchange differences
|
|
|
(14,938
|
)
|
|
|
(316
|
)
|
|
|
(26,558
|
)
|
|
|
(41,403
|
)
|
|
|
(30,324
|
)
|
|
|
(572
|
)
|
|
|
(16,401
|
)
|
|
|
(130,512
|
)
|
Additions
|
|
|
-
|
|
|
|
-
|
|
|
|
8,025
|
|
|
|
32,064
|
|
|
|
23,252
|
|
|
|
1,594
|
|
|
|
30,854
|
|
|
|
95,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfers
|
|
|
-
|
|
|
|
83
|
|
|
|
33,155
|
|
|
|
58,578
|
|
|
|
-
|
|
|
|
327
|
|
|
|
(92,143
|
)
|
|
|
-
|
|
Disposals
|
|
|
-
|
|
|
|
-
|
|
|
|
(173
|
)
|
|
|
(269
|
)
|
|
|
-
|
|
|
|
(35
|
)
|
|
|
-
|
|
|
|
(477
|
)
|
Reclassification to non-income tax credits (*)
|
|
|
-
|
|
|
|
-
|
|
|
|
(393
|
)
|
|
|
(701
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(4,186
|
)
|
|
|
(5,280
|
)
|
Depreciation (Note 22)
|
|
|
-
|
|
|
|
(662
|
)
|
|
|
(7,018
|
)
|
|
|
(21,195
|
)
|
|
|
(13,558
|
)
|
|
|
(799
|
)
|
|
|
-
|
|
|
|
(43,232
|
)
|
Closing net book amount
|
|
|
159,482
|
|
|
|
4,506
|
|
|
|
201,809
|
|
|
|
304,660
|
|
|
|
194,047
|
|
|
|
5,066
|
|
|
|
38,300
|
|
|
|
907,870
|
|
At June 30, 2015
(revised and unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
|
159,482
|
|
|
|
13,622
|
|
|
|
299,050
|
|
|
|
589,669
|
|
|
|
207,605
|
|
|
|
14,057
|
|
|
|
38,300
|
|
|
|
1,321,785
|
|
Accumulated depreciation
|
|
|
-
|
|
|
|
(9,116
|
)
|
|
|
(97,241
|
)
|
|
|
(285,009
|
)
|
|
|
(13,558
|
)
|
|
|
(8,991
|
)
|
|
|
-
|
|
|
|
(413,915
|
)
|
Net book amount
|
|
|
159,482
|
|
|
|
4,506
|
|
|
|
201,809
|
|
|
|
304,660
|
|
|
|
194,047
|
|
|
|
5,066
|
|
|
|
38,300
|
|
|
|
907,870
|
|
Six-month period ended June
30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opening net book amount
|
|
|
114,527
|
|
|
|
5,141
|
|
|
|
167,468
|
|
|
|
226,049
|
|
|
|
156,671
|
|
|
|
3,920
|
|
|
|
23,113
|
|
|
|
696,889
|
|
Exchange differences
|
|
|
(2,149
|
)
|
|
|
(670
|
)
|
|
|
30,126
|
|
|
|
50,795
|
|
|
|
36,332
|
|
|
|
88
|
|
|
|
(154
|
)
|
|
|
114,368
|
|
Additions
|
|
|
-
|
|
|
|
-
|
|
|
|
4,771
|
|
|
|
20,960
|
|
|
|
27,872
|
|
|
|
886
|
|
|
|
8,200
|
|
|
|
62,689
|
|
Transfers
|
|
|
-
|
|
|
|
3,866
|
|
|
|
2,287
|
|
|
|
5,957
|
|
|
|
-
|
|
|
|
|
|
|
|
(12,110
|
)
|
|
|
-
|
|
Disposals
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
(961
|
)
|
|
|
-
|
|
|
|
(24
|
)
|
|
|
-
|
|
|
|
(985
|
)
|
Reclassification to non-income tax credits (*)
|
|
|
-
|
|
|
|
-
|
|
|
|
(655
|
)
|
|
|
(110
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(39
|
)
|
|
|
(804
|
)
|
Transfers to Investment property (Note 7)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
140
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
140
|
|
Depreciation (Note 22)
|
|
|
|
|
|
|
(611
|
)
|
|
|
(4,427
|
)
|
|
|
(24,974
|
)
|
|
|
(10,964
|
)
|
|
|
(616
|
)
|
|
|
-
|
|
|
|
(41,592
|
)
|
Closing net book amount
|
|
|
112,378
|
|
|
|
7,726
|
|
|
|
199,570
|
|
|
|
277,856
|
|
|
|
209,911
|
|
|
|
4,254
|
|
|
|
19,010
|
|
|
|
830,705
|
|
At June 30, 2016
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
|
112,378
|
|
|
|
18,085
|
|
|
|
304,002
|
|
|
|
624,818
|
|
|
|
399,881
|
|
|
|
14,494
|
|
|
|
19,010
|
|
|
|
1,492,668
|
|
Accumulated depreciation
|
|
|
-
|
|
|
|
(10,359
|
)
|
|
|
(104,432
|
)
|
|
|
(346,962
|
)
|
|
|
(189,970
|
)
|
|
|
(10,240
|
)
|
|
|
-
|
|
|
|
(661,963
|
)
|
Net book amount
|
|
|
112,378
|
|
|
|
7,726
|
|
|
|
199,570
|
|
|
|
277,856
|
|
|
|
209,911
|
|
|
|
4,254
|
|
|
|
19,010
|
|
|
|
830,705
|
|
(*) Brazilian federal tax law allows entities
to take a percentage of the total cost of the assets purchased as a tax credit. As of June 30, 2016, 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$ 39,392
and US$ 40,296 of depreciation are included in “Cost of manufactured products sold and services rendered” for the six-month
periods ended June 30, 2016 and 2015, respectively. An amount US$ 1,888 and US$ 2,569 of depreciation are included in “General
and administrative expenses” for the six-month periods ended June 30, 2016 and 2015, respectively. An amount of US$ 312 and
US$ 395 of depreciation are included in “Selling expenses” for the six-month periods ended June 30, 2016 and 2015,
respectively.
As of June 30, 2016,
borrowing costs of US$ 1,538 (June 30, 2015: US$ 2,728) 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$ 502,230 as of June 30, 2016.
As of June 30, 2016
included within property, plant and equipment balances are US$ 293 related to the net book value of assets under finance leases.
Changes in the Group’s investment
property in the six-month periods ended June 30, 2016 and 2015 were as follows:
|
|
June 30,
2016
|
|
|
June 30,
2015
|
|
|
|
(unaudited)
|
|
Beginning of the period
|
|
|
4,796
|
|
|
|
6,675
|
|
Exchange differences
|
|
|
(638
|
)
|
|
|
(394
|
)
|
End of the period
|
|
|
4,158
|
|
|
|
6,281
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
|
4,158
|
|
|
|
6,281
|
|
Accumulated depreciation
|
|
|
-
|
|
|
|
-
|
|
Net book amount
|
|
|
4,158
|
|
|
|
6,281
|
|
The following amounts
have been recognized in the statement of income in the line “Sales of manufactured products and services rendered”:
|
|
June 30,
2016
|
|
|
June 30,
2015
|
|
|
|
(unaudited)
|
|
Rental income
|
|
|
545
|
|
|
|
662
|
|
As of June 30, 2016,
the fair value of investment property was US$ 55 million (2015: US$ 48 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 Group’s
intangible assets in the six-month periods ended June 30, 2016 and 2015 were as follows:
|
|
Goodwill
|
|
|
Trademarks
|
|
|
Software
|
|
|
Others
|
|
|
Total
|
|
Six-month period ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opening net book amount
|
|
|
20,172
|
|
|
|
959
|
|
|
|
2,634
|
|
|
|
13
|
|
|
|
23,778
|
|
Exchange differences
|
|
|
(1,926
|
)
|
|
|
(5
|
)
|
|
|
(328
|
)
|
|
|
(2
|
)
|
|
|
(2,261
|
)
|
Additions
|
|
|
-
|
|
|
|
-
|
|
|
|
811
|
|
|
|
-
|
|
|
|
811
|
|
Amortization charge (i) (Note 22)
|
|
|
-
|
|
|
|
-
|
|
|
|
(292
|
)
|
|
|
(3
|
)
|
|
|
(295
|
)
|
Closing net book amount
|
|
|
18,246
|
|
|
|
954
|
|
|
|
2,825
|
|
|
|
8
|
|
|
|
22,033
|
|
At June 30,2015
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
|
18,246
|
|
|
|
2,493
|
|
|
|
4,393
|
|
|
|
140
|
|
|
|
25,272
|
|
Accumulated amortization
|
|
|
-
|
|
|
|
(1,539
|
)
|
|
|
(1,568
|
)
|
|
|
(132
|
)
|
|
|
(3,239
|
)
|
Net book amount
|
|
|
18,246
|
|
|
|
954
|
|
|
|
2,825
|
|
|
|
8
|
|
|
|
22,033
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six-month period ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opening net book amount
|
|
|
13,510
|
|
|
|
930
|
|
|
|
2,200
|
|
|
|
21
|
|
|
|
16,661
|
|
Exchange differences
|
|
|
345
|
|
|
|
(6
|
)
|
|
|
284
|
|
|
|
3
|
|
|
|
626
|
|
Additions
|
|
|
-
|
|
|
|
-
|
|
|
|
785
|
|
|
|
19
|
|
|
|
804
|
|
Amortization charge (ii) (Note 22)
|
|
|
-
|
|
|
|
-
|
|
|
|
(292
|
)
|
|
|
(21
|
)
|
|
|
(313
|
)
|
Closing net book amount
|
|
|
13,855
|
|
|
|
924
|
|
|
|
2,977
|
|
|
|
22
|
|
|
|
17,778
|
|
At June 30, 2016
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
|
13,855
|
|
|
|
2,463
|
|
|
|
5,113
|
|
|
|
189
|
|
|
|
21,620
|
|
Accumulated amortization
|
|
|
-
|
|
|
|
(1,539
|
)
|
|
|
(2,136
|
)
|
|
|
(167
|
)
|
|
|
(3,842
|
)
|
Net book amount
|
|
|
13,855
|
|
|
|
924
|
|
|
|
2,977
|
|
|
|
22
|
|
|
|
17,778
|
|
(i) For the six-month period ended June
30, 2015 an amount of US$ 568 and US$ 17 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 six-month period ended
June 30, 2016 an amount of US$ 292 and US$ 21 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, 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)
Changes in the Group’s
biological assets in the six-month periods ended June 30, 2016 and 2015 were as follows:
|
|
June 30,
2016
|
|
|
June 30,
2015
(revised)
|
|
|
|
(unaudited)
|
|
Beginning of the period
|
|
|
111,818
|
|
|
|
124,735
|
|
Increase due to purchases
|
|
|
1,132
|
|
|
|
4
|
|
Initial recognition and changes in fair value of biological assets
|
|
|
83,494
|
|
|
|
18,333
|
|
Decrease due to harvest
|
|
|
(153,720
|
)
|
|
|
(146,150
|
)
|
Decrease due to disposals
|
|
|
(1,305
|
)
|
|
|
(1,624
|
)
|
Decrease due to sales of agricultural produce
|
|
|
(10,183
|
)
|
|
|
(14,541
|
)
|
Costs incurred during the period
|
|
|
93,045
|
|
|
|
105,781
|
|
Exchange differences
|
|
|
10,285
|
|
|
|
(9,533
|
)
|
End of the period
|
|
|
134,566
|
|
|
|
77,005
|
|
Biological assets as of June 30, 2016
and December 31, 2015 were as follows:
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
|
(unaudited)
|
|
|
(revised)
|
|
Non-current
|
|
|
|
|
|
|
|
|
Cattle for dairy production
|
|
|
6,833
|
|
|
|
6,459
|
|
Other cattle
|
|
|
985
|
|
|
|
17
|
|
|
|
|
7,818
|
|
|
|
6,476
|
|
Current
|
|
|
|
|
|
|
|
|
Other cattle
|
|
|
811
|
|
|
|
598
|
|
Sown land – crops
|
|
|
18,498
|
|
|
|
22,536
|
|
Sown land – rice
|
|
|
4,730
|
|
|
|
23,131
|
|
Sown land – sugarcane
|
|
|
102,709
|
|
|
|
59,077
|
|
|
|
|
126,748
|
|
|
|
105,342
|
|
Total biological assets
|
|
|
134,566
|
|
|
|
111,818
|
|
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)
|
10.
|
Financial instruments
|
As of June 30, 2016,
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 June 30, 2016 and their
allocation to the fair value hierarchy:
|
|
2016
|
|
|
|
Level
1
|
|
|
Level
2
|
|
|
Total
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments
|
|
|
6,755
|
|
|
|
591
|
|
|
|
7,346
|
|
Total assets
|
|
|
6,755
|
|
|
|
591
|
|
|
|
7,346
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments
|
|
|
(22,484
|
)
|
|
|
(9,454
|
)
|
|
|
(31,938
|
)
|
Total liabilities
|
|
|
(22,484
|
)
|
|
|
(9,454
|
)
|
|
|
(31,938
|
)
|
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
|
|
|
|
(13,991
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Futures-Foreign exchange contracts
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
(213
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Futures-Foreign exchange contracts
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2
|
|
|
|
122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options
|
|
Quoted price
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
(1,525
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options/OTC
|
|
Quoted price
|
|
|
-
|
|
|
Black & Scholes
|
|
|
|
2
|
|
|
|
(2,208
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-rate swaps
|
|
Theoretical price
|
|
Swap curve; Money market interest-rate curve
|
|
|
Present value method
|
|
|
|
2
|
|
|
|
469
|
|
NDF
|
|
Quoted price
|
|
|
-
|
|
|
|
-
|
|
|
|
2
|
|
|
|
(7,246
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(24,592
|
)
|
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
|
|
|
June
30, 2016
|
|
|
December
31, 2015
|
|
|
|
(unaudited)
|
|
|
|
|
Non current
|
|
|
|
|
|
|
|
|
Trade receivables
|
|
|
1,426
|
|
|
|
1,764
|
|
Trade receivables – net
|
|
|
1,426
|
|
|
|
1,764
|
|
Advances to suppliers
|
|
|
8,278
|
|
|
|
8,476
|
|
Income tax credits
|
|
|
6,066
|
|
|
|
6,428
|
|
Non-income tax credits (i)
|
|
|
1,611
|
|
|
|
1,914
|
|
Judicial deposits
|
|
|
2,617
|
|
|
|
2,105
|
|
Other receivables
|
|
|
1,751
|
|
|
|
1,108
|
|
Non current portion
|
|
|
21,749
|
|
|
|
21,795
|
|
Current
|
|
|
|
|
|
|
|
|
Trade receivables
|
|
|
56,511
|
|
|
|
55,846
|
|
Receivables from related parties (Note 27)
|
|
|
8,975
|
|
|
|
8,204
|
|
Less: Allowance for trade receivables
|
|
|
(473
|
)
|
|
|
(481
|
)
|
Trade receivables – net
|
|
|
65,013
|
|
|
|
63,569
|
|
Prepaid expenses
|
|
|
5,873
|
|
|
|
3,914
|
|
Advance to Suppliers
|
|
|
30,975
|
|
|
|
12,182
|
|
Income tax credits
|
|
|
19,292
|
|
|
|
5,438
|
|
Non-income tax credits (i)
|
|
|
45,327
|
|
|
|
42,914
|
|
Cash collateral
|
|
|
14,519
|
|
|
|
3,037
|
|
Receivables from related parties (Note 27)
|
|
|
1,114
|
|
|
|
300
|
|
Receivable from disposal of subsidiary
|
|
|
-
|
|
|
|
2,997
|
|
Other receivables
|
|
|
13,499
|
|
|
|
10,660
|
|
Subtotal
|
|
|
130,599
|
|
|
|
81,442
|
|
Current portion
|
|
|
195,612
|
|
|
|
145,011
|
|
Total trade and other receivables, net
|
|
|
217,361
|
|
|
|
166,806
|
|
(i) Includes US$ 804 for the six month
period ended June 30, 2016 reclassified from property, plant and equipment (for the year ended December 31, 2015: US$ 941).
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 Group’s trade and other receivables are denominated in the following currencies (expressed in US dollars):
|
|
June
30,
2016
|
|
|
December
31,
2015
|
|
|
|
(unaudited)
|
|
|
|
|
Currency
|
|
|
|
|
|
|
US Dollar
|
|
|
65,658
|
|
|
|
30,191
|
|
Argentine Peso
|
|
|
46,986
|
|
|
|
36,210
|
|
Uruguayan Peso
|
|
|
674
|
|
|
|
566
|
|
Brazilian Reais
|
|
|
104,043
|
|
|
|
99,839
|
|
|
|
|
217,361
|
|
|
|
166,806
|
|
As of June 30, 2016
trade receivables of US$ 28,019 (December 31, 2015: US$ 7,542) were past due but not impaired. The ageing analysis of these receivables
indicates that 1,458 and 549 are over 6 months in June 30, 2016 and December 31, 2015, 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.
|
|
June
30,
2016
|
|
|
December
31,
2015
|
|
|
|
(unaudited)
|
|
|
(revised)
|
|
Raw materials
|
|
|
29,605
|
|
|
|
31,833
|
|
Finished goods
|
|
|
105,117
|
|
|
|
49,457
|
|
Stocks held by third parties
|
|
|
9,472
|
|
|
|
3,717
|
|
Others
|
|
|
322
|
|
|
|
279
|
|
|
|
|
144,516
|
|
|
|
85,286
|
|
The cost of inventories
recognized as expense are included in ‘Cost of manufactured products sold and services rendered’ amounted to US$ 158,538
for the six-month period ended June 30, 2016. The cost of inventories recognized as expense and included in ‘Cost of agricultural
produce sold and direct agricultural selling expenses’ amounted to US$ 79,890 for the six-month period ended June 30, 2016.
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
|
|
|
June
30,
2016
|
|
|
December
31,
2015
|
|
|
|
(unaudited)
|
|
|
|
|
Cash at bank and on hand
|
|
|
138,852
|
|
|
|
185,864
|
|
Short-term bank deposits
|
|
|
28,735
|
|
|
|
13,030
|
|
|
|
|
167,587
|
|
|
|
198,894
|
|
|
14.
|
Shareholder´s Contributions
|
|
|
Number
of
shares
(thousands)
|
|
|
Share
capital
and share
premium
|
|
At January 1, 2015
|
|
|
122,382
|
|
|
|
1,116,617
|
|
Employee share options exercised (Note 15)
|
|
|
-
|
|
|
|
1,378
|
|
Restricted share vested
|
|
|
-
|
|
|
|
3,103
|
|
At June 30,2015
|
|
|
122,382
|
|
|
|
1,121,098
|
|
|
|
|
|
|
|
|
|
|
At January 1, 2016
|
|
|
122,382
|
|
|
|
1,121,247
|
|
Employee share options exercised (Note 15)
|
|
|
-
|
|
|
|
323
|
|
Restricted share vested
|
|
|
-
|
|
|
|
3,225
|
|
At June 30, 2016
|
|
|
122,382
|
|
|
|
1,124,795
|
|
|
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 Group’s subsidiaries.
No expense was accrued for both periods
under the Options Schemes.
As of June 30, 2016
36.768 options (2015:165.844) were exercised, and 23.716 (2015: 20.613) were forfeited.
|
(b)
|
Restricted
Share and Restricted Stock Unit Plan
|
As of June 30, 2016,
the Group recognized compensation expense US$ 2, 5 million related to the restricted shares granted under the Restricted Share
Plan (2015: US$ 2, 0 million).
During the six month
period ended June 30 2016, 463.023 Restricted Share and Restricted Stock Units were granted, (2015:625.970), 453.001 vested, (2015:
432.631), and 17.505 were forfeited (2015: 16.099).
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
|
|
|
June
30,
2016
|
|
|
December
31,
2015
|
|
|
|
(unaudited)
|
|
|
|
|
Non-current
|
|
|
|
|
|
|
|
|
Payable from acquisition of property, plant and equipment (i)
|
|
|
1,042
|
|
|
|
1,563
|
|
Other payables
|
|
|
415
|
|
|
|
348
|
|
|
|
|
1,457
|
|
|
|
1,911
|
|
Current
|
|
|
|
|
|
|
|
|
Trade payables
|
|
|
58,632
|
|
|
|
47,035
|
|
Advances from customers
|
|
|
3,219
|
|
|
|
2,838
|
|
Amounts due to related parties (Note 27)
|
|
|
12
|
|
|
|
465
|
|
Taxes payable
|
|
|
2,650
|
|
|
|
2,716
|
|
Other payables
|
|
|
1,330
|
|
|
|
677
|
|
|
|
|
65,843
|
|
|
|
53,731
|
|
Total trade and other payables
|
|
|
67,300
|
|
|
|
55,642
|
|
|
(i)
|
These trades payable are mainly collateralized
by property, plant and equipment.
|
|
|
June
30,
2016
|
|
|
December
31,
2015
|
|
|
|
(unaudited)
|
|
|
|
|
Non-current
|
|
|
|
|
|
|
|
|
Bank borrowings
|
|
|
494,179
|
|
|
|
483,583
|
|
Obligations under finance leases
|
|
|
22
|
|
|
|
68
|
|
|
|
|
494,201
|
|
|
|
483,651
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
|
|
|
Bank overdrafts
|
|
|
5,860
|
|
|
|
9
|
|
Bank borrowings
|
|
|
290,912
|
|
|
|
239,468
|
|
Obligations under finance leases
|
|
|
84
|
|
|
|
211
|
|
|
|
|
296,856
|
|
|
|
239,688
|
|
Total borrowings
|
|
|
791,057
|
|
|
|
723,339
|
|
(*) The Group was
in compliance with the related covenants under the respective loan agreements.
As of June 30, 2016,
total bank borrowings include collateralized liabilities of US$ 686,788 (December 31, 2015: US$ 669,109). These loans are mainly
collateralized by property, plant and equipment sugarcane plantations, sugar export contracts and shares of certain subsidiaries
of the Group.
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 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:
|
|
June
30,
2016
|
|
|
December
31,
2015
|
|
|
|
(unaudited)
|
|
|
|
|
Fixed rate:
|
|
|
|
|
|
|
|
|
Less than 1 year
|
|
|
150,835
|
|
|
|
89,918
|
|
Between 1 and 2 years
|
|
|
36,637
|
|
|
|
31,096
|
|
Between 2 and 3 years
|
|
|
31,758
|
|
|
|
30,197
|
|
Between 3 and 4 years
|
|
|
27,630
|
|
|
|
22,497
|
|
Between 4 and 5 years
|
|
|
21,532
|
|
|
|
18,779
|
|
More than 5 years
|
|
|
31,340
|
|
|
|
34,492
|
|
|
|
|
299,732
|
|
|
|
226,979
|
|
|
|
|
|
|
|
|
|
|
Variable rate:
|
|
|
|
|
|
|
|
|
Less than 1 year
|
|
|
145,937
|
|
|
|
149,559
|
|
Between 1 and 2 years
|
|
|
235,058
|
|
|
|
109,488
|
|
Between 2 and 3 years
|
|
|
79,256
|
|
|
|
102,351
|
|
Between 3 and 4 years
|
|
|
15,176
|
|
|
|
79,341
|
|
Between 4 and 5 years
|
|
|
7,349
|
|
|
|
44,233
|
|
More than 5 years
|
|
|
8,443
|
|
|
|
11,109
|
|
|
|
|
491,219
|
|
|
|
496,081
|
|
|
|
|
790,951
|
|
|
|
723,060
|
|
The carrying amounts
of the Group’s borrowings are denominated in the following currencies (expressed in US dollars):
|
|
June
30,
2016
|
|
|
December
31,
2015
|
|
|
|
(unaudited)
|
|
|
|
|
Currency
|
|
|
|
|
|
|
|
|
US Dollar
|
|
|
560,982
|
|
|
|
526,710
|
|
Brazilian Reais
|
|
|
222,781
|
|
|
|
193,345
|
|
Argentine Peso
|
|
|
7,294
|
|
|
|
3,284
|
|
|
|
|
791,057
|
|
|
|
723,339
|
|
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)
Taxes on income in
the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.
|
|
June
30,
2016
|
|
|
June
30,
2015
(revised)
|
|
|
|
(unaudited)
|
|
Current income tax
|
|
|
(2,551
|
)
|
|
|
(2,081
|
)
|
Deferred income tax
|
|
|
(2,065
|
)
|
|
|
5,897
|
|
Income tax (expense) / benefit
|
|
|
(4,616
|
)
|
|
|
3,816
|
|
There has been no
change in the statutory tax rates in the countries where the Group operates since December 31, 2015.
Argentine law includes
a 10% withholding tax on dividend distributions made by Argentine companies to individuals and foreign beneficiaries. As of June
30, 2016, 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:
|
|
June
30,
2016
|
|
|
June
30,
2015
(revised)
|
|
|
|
(unaudited)
|
|
Beginning of period asset
|
|
|
53,108
|
|
|
|
2,438
|
|
Exchange differences
|
|
|
10,868
|
|
|
|
(4,922
|
)
|
Tax charge relating to cash flow hedge (i)
|
|
|
(34,145
|
)
|
|
|
15,297
|
|
Income tax expense (expense) / benefit
|
|
|
(2,065
|
)
|
|
|
5,897
|
|
End of period asset
|
|
|
27,766
|
|
|
|
18,710
|
|
|
(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 US$ 23,594 loss for
the six-month period ended June 30, 2016.
|
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 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:
|
|
June
30,
2016
|
|
|
June
30,
2015
(revised)
|
|
|
|
(unaudited)
|
|
Tax calculated at the tax rates applicable to profits in the respective countries
|
|
|
2,362
|
|
|
|
4,465
|
|
Non-deductible items
|
|
|
(5,115
|
)
|
|
|
(1,172
|
)
|
Non-deductible items – Changes in estimates or previous year
|
|
|
(1,180
|
)
|
|
|
-
|
|
Utilization of tax losses
|
|
|
-
|
|
|
|
277
|
|
Tax losses where no deferred tax asset was recognized
|
|
|
(100
|
)
|
|
|
-
|
|
Others
|
|
|
(583
|
)
|
|
|
246
|
|
Income tax (expense) / benefit
|
|
|
(4,616
|
)
|
|
|
3,816
|
|
|
19.
|
Payroll and social security liabilities
|
|
|
June
30,
2016
|
|
|
December
31,
2015
|
|
|
|
(unaudited)
|
|
|
|
|
Non-current
|
|
|
|
|
|
|
|
|
Social security payable
|
|
|
1,069
|
|
|
|
1,236
|
|
|
|
|
1,069
|
|
|
|
1,236
|
|
Current
|
|
|
|
|
|
|
|
|
Salaries payable
|
|
|
9,926
|
|
|
|
4,755
|
|
Social security payable
|
|
|
2,870
|
|
|
|
2,766
|
|
Provision for vacations
|
|
|
10,234
|
|
|
|
9,877
|
|
Provision for bonuses
|
|
|
2,997
|
|
|
|
4,755
|
|
|
|
|
26,027
|
|
|
|
22,153
|
|
Total payroll and social security liabilities
|
|
|
27,096
|
|
|
|
23,389
|
|
|
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, 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)
|
|
June
30,
2016
|
|
|
June
30,
2015
|
|
|
|
(unaudited)
|
|
Sales of manufactured products and services rendered:
|
|
|
|
|
|
|
|
|
Ethanol
|
|
|
69,414
|
|
|
|
72,941
|
|
Sugar
|
|
|
81,517
|
|
|
|
53,303
|
|
Rice
|
|
|
44,353
|
|
|
|
47,843
|
|
Energy
|
|
|
13,503
|
|
|
|
21,684
|
|
Powder milk
|
|
|
380
|
|
|
|
754
|
|
Operating leases
|
|
|
554
|
|
|
|
662
|
|
Services
|
|
|
390
|
|
|
|
910
|
|
Others
|
|
|
703
|
|
|
|
357
|
|
|
|
|
210,814
|
|
|
|
198,454
|
|
Sales of agricultural produce and biological assets:
|
|
|
|
|
|
|
|
|
Soybean
|
|
|
39,358
|
|
|
|
38,533
|
|
Cattle for dairy production
|
|
|
1,305
|
|
|
|
1,624
|
|
Corn
|
|
|
15,816
|
|
|
|
14,044
|
|
Pop Corn
|
|
|
287
|
|
|
|
-
|
|
Rice
|
|
|
892
|
|
|
|
-
|
|
Cotton
|
|
|
1,118
|
|
|
|
925
|
|
Milk
|
|
|
10,183
|
|
|
|
14,541
|
|
Wheat
|
|
|
5,017
|
|
|
|
6,946
|
|
Sunflower
|
|
|
5,245
|
|
|
|
9,046
|
|
Barley
|
|
|
625
|
|
|
|
596
|
|
Sorghum
|
|
|
-
|
|
|
|
14
|
|
Seeds
|
|
|
15
|
|
|
|
48
|
|
Others
|
|
|
29
|
|
|
|
373
|
|
|
|
|
79,890
|
|
|
|
86,690
|
|
Total sales
|
|
|
290,704
|
|
|
|
285,144
|
|
In June 2016, includes sales of soybean,
corn, rice, sugar, ethanol, cotton, sunflower, powder milk and others produced by third parties for an amount of US$ 439; US$
2,915; US$ 9,095; US$ 20,261, US$ 1, US$ 37, US$ 1,237 , US$ 324 and US$ 200 respectively.
In June 2015, includes sales of soybean,
rice, powder milk and sugar produced by third parties for an amount of US$ 426; US$ 7,394; US$ 354 and US$ 8,974 respectively
as for June 2015.
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 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 notional amount
of these contracts is US$ 137,9 million as of June 30, 2016 (June 30, 2015: US$ 113,2 million) comprised primarily of 275,431
tons of sugar (U$S 92), 7,335 m³ of ethanol (US$ 1,1 million), 327,593 mhw of energy (U$S 23,2 million) and 39,890 tons of
soybean (U$S 9,2 million), 57,698 tons of corn (US$ 8,9 million), 16,096 tons of wheat (US$ 2,7 million), and 3,079 of others
crops (US$ 0,8 million) which expire between March 2016 and July 2017.
The following table
provides the additional disclosure required on the nature of expenses and their relationship to the function within the Group:
|
|
June
30,
2016
|
|
|
June
30,
2015
(revised)
|
|
|
|
(unaudited)
|
|
Cost of agricultural produce and biological assets sold
|
|
|
72,109
|
|
|
|
84,742
|
|
Raw materials and consumables used in manufacturing activities
|
|
|
91,834
|
|
|
|
79,847
|
|
Services
|
|
|
5,516
|
|
|
|
5,503
|
|
Salaries and social security expenses (Note 23)
|
|
|
29,360
|
|
|
|
29,611
|
|
Depreciation and amortization
|
|
|
41,905
|
|
|
|
43,527
|
|
Taxes (*)
|
|
|
1,772
|
|
|
|
1,617
|
|
Maintenance and repairs
|
|
|
5,363
|
|
|
|
5,855
|
|
Lease expense and similar arrangements(**)
|
|
|
871
|
|
|
|
835
|
|
Freights
|
|
|
15,494
|
|
|
|
17,128
|
|
Export taxes / selling taxes
|
|
|
9,516
|
|
|
|
15,204
|
|
Fuel and lubricants
|
|
|
4,689
|
|
|
|
3,852
|
|
Others
|
|
|
8,774
|
|
|
|
9,506
|
|
Total expenses by nature
|
|
|
287,203
|
|
|
|
297,227
|
|
(*) Excludes export
taxes and selling taxes.
(**) Relates to various cancellable operating
lease agreements for office and machinery equipment.
For the six-month
period ended June 30, 2016, an amount of US$ 158,538 is included as “cost of manufactured products sold and services rendered”
(June 30, 2015: US$ 156.020); an amount of US$ 79,890 is included as “cost of agricultural produce sold and direct agricultural
selling expenses” (June 30, 2015: US$86,690); an amount of US$ 21,610 is included in “general and administrative expenses”
(June 30, 2015: US$ 23,485); and an amount of US$ 27,165 is included in “selling expenses” as described above (June
30, 2015: US$ 31,032).
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)
|
23.
|
Salaries and social security expenses
|
|
|
June
30,
2016
|
|
|
June
30,
2015
|
|
|
|
(unaudited)
|
|
Wages and salaries
|
|
|
19,403
|
|
|
|
20,717
|
|
Social security costs
|
|
|
7,412
|
|
|
|
6,909
|
|
Equity-settled share-based compensation
|
|
|
2,545
|
|
|
|
1,985
|
|
|
|
|
29,360
|
|
|
|
29,611
|
|
Number of employees
|
|
|
8,229
|
|
|
|
8,452
|
|
|
24.
|
Other operating (loss)/income, net
|
|
|
June
30,
2016
|
|
|
June
30,
2015
|
|
|
|
(unaudited)
|
|
(Loss)/Gain from commodity derivative financial instruments
|
|
|
(33,159
|
)
|
|
|
14,735
|
|
(Loss)/Gain from onerous contracts – forwards
|
|
|
(1,156
|
)
|
|
|
1
|
|
Gain from disposal of other property items
|
|
|
181
|
|
|
|
880
|
|
Gain from disposal of biological assets
|
|
|
20
|
|
|
|
-
|
|
Others
|
|
|
(47
|
)
|
|
|
(9
|
)
|
|
|
|
(34,161
|
)
|
|
|
15,607
|
|
|
25.
|
Financial results, net
|
|
|
June
30,
2016
|
|
|
June
30,
2015
|
|
|
|
(unaudited)
|
|
Finance income:
|
|
|
|
|
|
|
|
|
- Interest income
|
|
|
4,621
|
|
|
|
4,906
|
|
- Gain from interest rate/foreign exchange rate derivative financial instruments
|
|
|
-
|
|
|
|
570
|
|
- Other income
|
|
|
450
|
|
|
|
194
|
|
Finance income
|
|
|
5,071
|
|
|
|
5,670
|
|
|
|
|
|
|
|
|
|
|
Finance costs:
|
|
|
|
|
|
|
|
|
- Interest expense
|
|
|
(22,029
|
)
|
|
|
(24,151
|
)
|
- Cash flow hedge – transfer from equity
|
|
|
(23,594
|
)
|
|
|
(7,754
|
)
|
- Foreign exchange losses, net
|
|
|
(12,276
|
)
|
|
|
(9,653
|
)
|
- Taxes
|
|
|
(1,231
|
)
|
|
|
(1,457
|
)
|
-Loss from interest rate/foreign exchange rate derivative financial
|
|
|
(6,806
|
)
|
|
|
-
|
|
- Other expenses
|
|
|
(1,982
|
)
|
|
|
(1,589
|
)
|
Finance costs
|
|
|
(67,918
|
)
|
|
|
(44,604
|
)
|
Total financial results, net
|
|
|
(62,847
|
)
|
|
|
(38,934
|
)
|
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)
|
26.
|
Disclosure of leases and similar arrangements
|
The Group as lessor - Operating
leases
In September 2013,
Marfrig Argentina S.A., (“Marfrig Argentina”), an argentine subsidiary of Marfrig Alimentos S.A. (“Marfrig Alimentos")
a Brazilian Company, notified the Group of their intention to early terminate the lease agreement entered into with the Group
on December 2009 for grazing land. The termination of the lease agreement was effective in the fourth quarter of 2013. The Group
filed an arbitration proceeding against Marfrig Argentina and Marfrig Alimentos in 2014 claiming unpaid invoices and indemnification
for early termination for
US$ 23,000,000.
|
27.
|
Related-party transactions
|
The following is
a summary of the balances and transactions with related parties:
|
|
|
|
|
|
Income
(loss) included in
the statement of income
|
|
|
Balance
receivable
(payable)
|
|
Related
party
|
|
Relationship
|
|
Description
of
transaction
|
|
June
30,
2016
|
|
|
June
30,
2015
|
|
|
June
30,
2016
|
|
|
December
31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
-
|
|
|
|
-
|
|
|
|
1,114
|
|
|
|
783
|
|
|
|
|
Cost of manufactured products sold and services
rendered (ii)
|
|
|
-
|
|
|
|
(148
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
|
General and Administrative expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payables (Note 16)
|
|
|
-
|
|
|
|
-
|
|
|
|
(12
|
)
|
|
|
(23
|
)
|
CHS Agro
|
|
Joint venture
|
|
Services
|
|
|
45
|
|
|
|
14
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
Sales of good
|
|
|
366
|
|
|
|
2,245
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
Interest income
|
|
|
163
|
|
|
|
56
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
Receivables (Note 11)
|
|
|
-
|
|
|
|
-
|
|
|
|
8,975
|
|
|
|
7,990
|
|
Directors and senior management
|
|
Employment
|
|
Compensation selected employees
|
|
|
(2,352
|
)
|
|
|
(3,475
|
)
|
|
|
(15,346
|
)
|
|
|
(14,530
|
)
|
(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.