ADAMA Reports First Quarter 2023 Results
Sales & Profit impacted by channel inventory
First Quarter 2023 Highlights:
Sales down 11% to $1,259 million (-4% in RMB terms; -7% in CER1 terms), 1% higher prices and
8% decrease in volume
Adjusted EBITDA amounted to $165 million vs. $201 million in Q1 2022
Adjusted net income of $22 million; Reported net income of $12 million
BEIJING, CHINA and TEL AVIV, ISRAEL, April 24, 2023 – ADAMA Ltd. (the “Company”) (SZSE
000553), today reported its financial results for the first quarter ended March 31, 2023.
Ignacio Dominguez, President and CEO of ADAMA, said, "In 2022, supply challenges and rising
crop protection prices led to inventory buildup throughout the supply chain. While market demand is
being supplied by the stockpiles of product in the channel, the high inventory levels and declining raw
material pricing are also supporting a "wait and see" approach.We believe that as the year progresses
and the agricultural season in Latin America and India begins, this inventory will begin to deplete and
the demand ADAMA sees for its products will be invigorated.
"On a personal note, as recently announced, I requested to retire from ADAMA after 22 years with the
Company. Steve Hawkins, who currently serves as Senior Vice President of the Americas, will be
replacing me as President & CEO. I would like to assure all that I will remain at the disposal of the
Company in order to ensure a seamless transition and I am confident that under Steve's leadership
ADAMA will reach new heights."
Table 1. Financial Performance Summary
As Reported Adjustments Adjusted
USD (m) Q1 Q1 Q1 Q1 Q1 Q1
2023 2022 % Change 2023 2022 2023 2022 % Change
Revenues 1,259 1,420 (11%) - - 1,259 1,420 (11%)
Gross profit 310 368 (16%) 30 46 340 414 (18%)
% of sales 24.6% 25.9% 27.0% 29.2%
Operating income (EBIT) 92 124 (26%) 10 9 102 133 (24%)
% of sales 7.3% 8.8% 8.1% 9.4%
Income before taxes 10 71 (85%) 10 9 20 80 (74%)
% of sales 0.8% 5.0% 1.6% 5.7%
Net income 12 67 (82%) 9 8 22 75 (71%)
% of sales 1.0% 4.7% 1.7% 5.3%
EPS
- USD 0.0052 0.0289 0.0093 0.0322
- RMB 0.0357 0.1836 0.0633 0.2045
EBITDA 166 203 (18%) (1) (2) 165 201 (18%)
% of sales 13.2% 14.3% 13.1% 14.2%
1 CER – Constant Exchange Rates
Notes:
“As Reported” denotes the Company’s financial statements according to the Accounting Standards for Business Enterprises and t he
implementation guidance, interpretations and other relevant provisions issued or revised subsequently by the Chinese Ministry of
Finance (the “MoF) (collectively referred to as “ASBE”). Note that in the reported financial statements, according to the ASBE guidelines
[IAS 37], certain items (specifically certain transportation costs and certain idleness charges) are classified under COGS. Please see
the appendix to this release for further information.
Relevant income statement items contained in this release are also presented on an “Adjusted” basis, which exclude items that are of
a transitory or non-cash/non-operational nature that do not impact the ongoing performance of the business, and reflect the way the
Company’s management and the Board of Directors view the performance of the Company internally. The Company believes that
excluding the effects of these items from its operating results allows management and investors to effectively compare the true
underlying financial performance of its business from period to period and against its global peers. A detailed summary of these
adjustments appears in the appendix below.
The number of shares used to calculate both basic and diluted earnings per share in both Q1 2023 and 2022 is 2,329.8 million shares.
In this table and all tables in this release numbers may not sum due to rounding.
The general crop protection market environment2
In Q1 2023 commodity crop prices continue
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