Stock Code: 000553 (200553) Stock abbreviation: ADAMA A (B) Announcement No. 2020-54
ADAMA Ltd.
Q1-Q3 2020 Performance Estimation
The Company and all the directors confirm that the information disclosed herein is true,
accurate, complete and contains no false recording, misleading statement or material
omission.
I. Performance Estimation
1. Estimation period: First nine months and third quarter of 2020
2. Estimated net profit: lower compared with the corresponding period last year
Item Current reporting period Same period last year
January to September 2020 January to September 2019
Net income attributable to the 215 – 236
shareholders of the listed 795
company Percentage decrease YoY
(RMB in millions) 70.3% – 73.0%
Basic earnings per share 0.0887 – 0.0973 0.3248
(RMB)
Item Current reporting period Same period last year
July to September 2020 July to September 2019
Net income attributable to the 10 – 31
shareholders of the listed 206
company Percentage decrease YoY
(RMB in millions) 85.0% – 95.1%
Basic earnings per share 0.0044 – 0.0131 0.0842
(RMB)
II. Pre-audit of the estimated performance
The estimated results of this period are the preliminary estimation of the Company and have not
been audited nor reviewed by certified accountants.
III. Explanations for Performance Variation
The Company is expecting to deliver record third quarter sales, in both USD and RMB terms,
driven by solid volume growth, resulting in higher sales over the nine-month period. While global
currencies recovered somewhat against the USD during the third quarter, they generally
remained weaker than in the comparative periods in 2019, which continued to restrain sales
growth and significantly impact profitability in USD terms in the quarter and nine-month period.
Sales
Sales are expected to grow by 12% in the quarter and by 8% in the nine-month period, in CER
terms, compared to the corresponding periods last year, driven by strong, double-digit increase in
volumes.
ADAMA is expecting growth in the quarter to have been led by a strong performance in Latin
America, driven by robust volume growth across the region, most notably in Brazil, Argentina,
Colombia, Mexico and Paraguay, and bolstered by the Company’s acquisition in Peru, and
despite widespread COVID-19 related restrictions in the region. Continued growth was seen in
the India, Middle East & Africa region, led by India which benefited from above-average monsoon
rains and good cropping conditions. The Company is expecting to deliver strong growth in
Asia-Pacific with noteworthy performances in Australia, alongside solid growth in New Zealand
and Korea. In China, the Company is expecting to deliver moderate growth, with a strong
performance from its branded, formulated sales being partially offset by lower prices received for
its raw materials and intermediates due to increased supply generally from Chinese producers. A
strong contribution is expected to be recorded from the Company’s Consumer and Professional
Solutions business which continues its strong recovery from the COVID-19 related challenges
seen earlier in the year.
The solid growth in the quarter in these regions more than compensated for the somewhat lower
sales expected in Europe, with widespread extreme drought conditions significantly impacting
application in key crops, partially offset by the contribution of the Company's recent acquisition in
Greece. Crop protection sales in North America are expected to be markedly lower, largely due to
disruptive weather conditions in the US which saw windstorms damage corn fields in the
mid-west, fires raging in the orchards and vineyards of California and Oregon impacting sales of
key insecticide products, and a heatwave challenging cotton farmers in Texas already contending
with reduced demand for their product due to the COVID-19 impact on the apparel industry.
In USD terms, sales are expected to grow by a more moderate 3% in the quarter and 1% in the
nine-month period (2% and 3%, respectively in RMB terms), compared to the corresponding
periods last year, as the strong business growth was heavily impacted by the generally weaker
currencies against the USD when compared to the same periods last year.
Gross Profit, Operating Profit and EBITDA
In the third quarter, the Company is expecting to report lower gross profit, with the strong volume
growth and lower procurement costs more than offset by the continued impact of the materially
weaker global currencies. This in turn is expected to translate into lower Operating Profit and
EBITDA, which
查看PDF原文
