ADAMA Provides Performance Estimation for Full Year of 2023
TEL AVIV, ISRAEL and BEIJING, CHINA, January 30, 2024 – ADAMA Ltd. (the “Company”) (SZSE 000553),
today provided an estimate regarding its financial performance for the full year of 2023.
Sales
For the full year of 2023, ADAMA is expecting to report a decline in sales of approximately 12% - 21% in USD
terms (8% -17% in RMB terms), compared to the full year of 2022, reflecting lower volumes and pricesas well
as the negative impact of exchange rates. The lower sales reflect market dynamics ofhigh channel inventories,
last-minute purchasing following channel destocking in light of high interest rates and pressure on crop
protection product pricing due to the lower channel demand and lower active ingredient pricing.
Adjusted EBITDA
In the full year of 2023, the Company is expecting to report a decrease in adjusted EBITDA and its margin, in
comparison to the full year of 2022. The decrease in adjusted EBITDA is due to the decline in sales, as
described above, high-costinventory, inventory impairment, the negative impact of exchange rates and despite
a decrease in operating expenses and its margin as well as an improvement in the Company's sales mix of
higher margin products. In response to the market conditions the Company has taken active measures to
manage its COGS, procurement and OPEX that have led to a decrease in the level of inventory held and a
decrease in operating expenses.
Net Loss
In the full year of 2023, the Company is expecting to report Adjusted & Reported Net Loss, compared to
adjusted & reported net income in the full year of 2022. This is due to lower Operating Profit and an increase
in financial expenses in light of higher bank interest expenses due to an increase in interest rates and in short-
term loans. These financial expenses were moderated by the lower Israeli CPI.
Adjusted Net Income (Loss) Estimated FY 2022
FY 2023
Net income (loss) attributable to shareholders (211)-(261) 118
(USD millions)
Earnings (loss) per share (USD) (0.0906)-(0.1121) 0.0505
Net income (loss) attributable to shareholders (1,513)-(1,870) 740
(RMB millions)
Earnings (loss) per share (RMB) (0.6493)-(0.8026) 0.3177
Adjusted Net Income (loss) excludes the impact of transitory, non-operational or non-cash items, mainly
including:
i. Non-cash, non-recurring provision for asset impairment and income due to revaluation of put options
attributed to minority stake in a subsidiary and holdback release.
ii. Non-cash amortization charges in respect of Transfer assets received from Syngenta related to the
2017 ChemChina-Syngenta acquisition;
iii. Non-cash amortization net charges related to intangible assets created as part of the Purchase Price
Allocation (PPA) on acquisitions, with no impact on the ongoing performance of the companies
acquired;
iv. Company measures to improve efficiencies;
v. Incentive plans: ADAMA granted certain of its employees, a long-term incentive (LTI) in the form of
'phantom' awards linked to the Company’s share price. As such, the Company records an expense, or
recognizes income, depending on the fluctuation in the Company’s share price, regardless of award
exercises. To neutralize the impact of such share price movements on the measurement of the
Company’s performance and expected employee compensation and to reflect the existing phantom
awards, in the Company’s adjusted financial performance, the LTI is presented on an equity-settled
basis in accordance with the value of the existing plan at the grant date.
Reported Net Income (Loss) Estimated FY 2022
FY 2023
Net income (loss) attributable to shareholders (209)-(259) 96
(USD millions)
Earnings (loss) per share (USD) (0.0895)-(0.1110) 0.0413
Net income (loss) attributable to shareholders (1,491)-(1,848) 609
(RMB millions)
Earnings (loss) per share (RMB) (0.6400)-(0.7933) 0.2616
These estimations are preliminary and have not been audited or reviewed by the Company's auditors. These
estimations may change, inter alia, as a result of the further processing and analysis of the financial data that
the Company will performfor the preparation of its financial statements which will be released after the trading
hours on March 26, 2024.
Investors are reminded to exercise caution when making investment decisions.
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About ADAMA
ADAMA Ltd. (SZSE: 200553) is a global leader in crop protection, providing solutions to farmers across the
world to combat weeds, insects and disease. ADAMA has one of the widest
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