Adverse Weather ImpactAdverse weather events, including frosts and heavy rainfall, are expected to negatively impact Adecoagro's sugarcane crop outlook.
Debt And LeverageAdecoagro's acquisition raises its net debt from $700 million to $1.2 billion, which could increase its net debt to EBITDA ratio from 2.3x to over 2.5x, exceeding management's comfort zone.
Dividend PolicyThe acquisition raises questions about Adecoagro's dividend policy, which may face cuts if financial results do not improve.