ADAMA PROVIDES NET INCOME ESTIMATE FOR T HE T HIRD QUARTER
AND FIRST NINE MONTHS OF 2019
TEL AVIV, ISRAEL and BEIJING, CHINA, October 13, 2019 – Leadi ng global crop protection company
ADAMA Ltd. (the “Company”) (SZSE 000553), today provided an estimate regarding its expected net income
for the third quarter and first nine months of 2019.
The Com pany is expecting to deliver record third quarter sales, with high-single digit growth in USD terms
and above 10% growth in RMB terms, compared to the same period last year. This strong top-line
performance is expected to drive the Company to report sales growth to a nine-month record-high,
o vercomi ng the significant headwinds seen throughout the year.
In the third quarter, the robust performance was driven by strong business growth in almost all geographies,
together with continued increased prices, which were countered to som e extent by adverse currency
movements. The Company continues to grow strongly in Brazil and the rest of Latin Am erica, where its
portfolio of differentiated products is driving increasing market penetration. The Company delivered a strong
performance in Europe, despite the drought throughout the region. The third quarter saw a partial recovery in
North America late in the season following the severe weather challenges seen in the first half of the year,
with noteworthy performance recorded in both the US and Canada. In China, ADAMA continues to record
significant double-digit sales growth of its differentiated, formulated and branded products. This strong overall
growth com es despite the headwinds from the lack of high-demand products in many geographies due to the
disruption at the Ji ngzh ou ol d site, which is gradually ramping up its operations.
The strong sales growth in the quarter was complemented by an improvement in po rtfoli o mix, partially offset
by the impact of higher procurement costs. EBITDA is expected to be higher compared to the same period
last year, despite the lost profit from missing sales of products of the Jingzhou old site as well as the
recording of related idleness cost, albeit at a lower level as the site continues its incremental ramp-up of
production. Financial expenses are expected to be hi ghe r, partially offset by lower taxes.
Over the nine-month period, the Company expects to deliver top-line growth reaching a record-high,
o vercomi ng the significant market and supply headwinds encountered throughout the year. Leading
contributors to the growth are Latin America, led by Brazil, and North America, as well as the impact of the
strong, double-digit growth of the Com pany’s branded, formulated portfolio in China. The Company continues
to raise its prices in all regions and contain its manufacturing and other operating costs to mitigate the higher
procu rem ent costs and supply-constrained environment.
Reported Estimated 9M 9M 2018 Estimated Q3 Q3 2018
(2018 as previously reported) 2019 2019
Net income attributable to 109 – 117 398 22 – 30 26
shareholders (USD millions)
Earnings per share (USD) 0.0445 – 0.0477 0.1626 0.0089 – 0.0122 0.0108
Net income attributable to 741 – 797 2,542 153 – 209 180
shareholders (RMB millions)
Earnings per share (RMB) 0.3030 – 0.3259 1.0392 0.0624 – 0.0853 0.0734
The higher reported net income in the first nine months of 2018 is due to the di vestiture of several products in
Europe in connection with the approval by the EU Commission of the acquisition of Syngenta by ChemChina
last year, and other related impacts, which in the first nine months of 2018 resulted in the recognition of an
approximately $245 million o ne -time net income. The proceeds of this di vestiture, net of taxes and
transaction expenses, were paid to Syngenta in return for the transfer of a portfolio of products in Europe of
similar nature and economic val ue, which in turn, resulted in the recording in the reported financials of each
quarter of non-cash amortization expenses with no economic im pact, in respect of these written-up assets of
approximately $10 million starting in Q2 2018. Excluding the impact of the products’ divestiture and transfer,
net income in the fi rst nine months of 2018 would have been lower by $227 million, while in the nine-month
peri od of 2019 net income would have been higher by $27 million.
Excluding also the impact of certain one-time/non-cash items, including mai nly the legacy amortization of the
2011 PPA for the acquisition of Adam a Agricultural Soluti ons Ltd. by ChemChina, results in the following
adjusted net income:
Adjusted Estimated 9M 9M 2018 Estimated Q3 Q3 2018
2019 201
