Main highlights for the period:
Higher Adjusted EBITDA in 3Q25 was led by the Sugar, Ethanol & Energy business. In 9M25, the decline was explained by lower prices, higher costs and a mixed performance in yields.
Higher expansion capex was driven by the $96.0 million advance payment to purchase Nutrien's stake in Profertil. Excluding this, expansion capex increased by $5.7 million in 3Q25 and $13.6 million in 9M25.
Net Debt/LTM Adj. EBITDA stood at 2.8x on lower consolidated results and the aforementioned payment for Profertil. We are currently working on an Action Plan to reduce our cost structure while reviewing our capital allocation strategy.
Sugar, Ethanol & Energy business:
Adjusted EBITDA amounted to $120.5 million in 3Q25, 20.3% higher year-over-year, whereas year-to-date it reached $218.4 million, 15.6% lower compared to 9M24. (+) Switched to ethanol max scenario (58% in 3Q25 / 55% in 9M25) on greater margins than sugar. (+) Year-over-year gains in biological assets on greater expected productivity and lower costs. (+/-) All-time crushing record in 3Q25 (4.9 million tons; 20.4% increase versus 3Q24). Catching up our harvesting pace with 9.8 million tons crushed year-to-date. (+/-) In-line production cost in 3Q25 thanks to higher dilution on record crushing. Year-to-date, cost of production stood at 8.3 cts/lb (versus 7.8 cts/lb in 9M24) on lower TRS equivalent produced, and therefore lower cost dilution. (-) Lower net sales in both 3Q25 and 9M25 due to lower selling volumes and prices of sugar, despite the recovery in ethanol prices.
Farming business:
Adjusted EBITDA reached $1.5 million in 3Q25 and $19.2 million in 9M25, $15.9 million and $80.0 million lower year-over-year, respectively. Excluding the sale of La Pecuaria farm in April 2024, Adjusted EBITDA was down $65.0 million on a year-to-date basis. (+) Higher volumes sold of our Dairy products and Crops. (+/-) Record production in our Rice operations but selling at a slower pace. (-) Lower prices for crops, rice and dairy products.
