ADAMA Reports Second Quarter and First Half Year 2023 Results
Sales & profit impacted by channel destocking whilethe Company is
exercising inventory management through selective procurement of high
margin products
Second Quarter 2023 Highlights:
Sales down 17% to $1,233 million (-12% in RMB terms; -15% in CER1 terms), mainly reflecting
10% decrease in volume and 5% decrease in prices
Adjusted EBITDA amounted to $112 million vs. $240 million in Q2 2022
Adjusted net loss of $41 million; Reported net loss of $46 million
First Half Year2023 Highlights:
Sales down 14% to $2,492 million (-8% in RMB terms; -11% in CER terms), mainly reflecting 9%
decrease in volume and 2% decrease in prices
Adjusted EBITDA amounted to $277 million vs. $441 million in H1 2022
Adjusted net loss of $20 million; Reported net loss of $34 million
BEIJING, CHINA and TEL AVIV, ISRAEL, August 30, 2023 – ADAMA Ltd. (the “Company”) (SZSE
000553), today reported its financial results for the second quarter and six-month period ended June
30, 2023.
Steve Hawkins, President and CEO of ADAMA, said, "Agricultural markets are cyclical in nature
and the market we are seeing in 2023 is an adjustment to the market overstocking in 2022, leading
ADAMA's performance to be impacted in the quarter both by lower volumes as well as softer pricing.
In response the Company has implemented a cross-company turnaround plan to improve cashflow
and profit. In the second quarter the Company has already begun to clear out its high-cost inventory
while being selective regarding new procurement, focusing on high margin products, in line with the
Company's goal to improve the quality of business and its portfolio mix. Additional steps have also
been taken to ensure OPEX is well managed. While the consumption of high-cost inventory impacts
the results in the short term, we already see the positive impact of the reduction of procurement
reaching positive cashflow in the quarter. We believe these steps will support ADAMA, positioning it
better to capture opportunities in the current market cycle."
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