Welcome!

News Feed Item

ADAMA Crosses $3Bn Sales Mark: Reports Solid Business Momentum for Q4 & FY 2013

Company records sales growth in all its regions, with positive business drive in Brazil

AIRPORT CITY, Israel, March 9, 2014 /PRNewswire/ -- ADAMA Agricultural Solutions Ltd. (formerly Makhteshim Agan Industries, "ADAMA" or "the Company"), a leading global provider of crop protection solutions, today reported its financial results for the fourth quarter and full year ended December 31, 2013.

FINANCIAL HIGHLIGHTS

In millions of US$


Q4 2013

Q4 2012

Change


FY2013

FY2012

Change

Sales*


655.7

579.5

13.1%


3,076.4

2,834.5

8.5%

Gross profit


186.0

158.7

17.2%


968.1

899.6

7.6%

Gross margin


28.4%

27.4%

NA


31.5%

31.7%

NA

Operating profit


11.1

3.0

265.5%


309.0

281.6

9.7%

Profit (loss) before tax


(28.2)

(26.6)

6.1%


171.6

161.7

6.1%

Net income (loss)


(29.1)

(21.9)

32.7%


127.2

122.5

3.9%

EBITDA


51.5

41.0

25.5%


466.0

429.9

8.4%

* In constant currency terms, sales grew by 14.2% and 10.0% in the fourth quarter and the full year, respectively.

Commenting on the results, Mr. Yang Xingqiang, ADAMA's Chairman, said, "The fourth quarter was a good end to a strong year. In 2013, we continued our business momentum across the globe; our execution together with positive weather conditions enabled us to report sales growth and improved gross profit and EBITDA. 

"In parallel, we are pleased with our progress towards building an integrated platform in China, as demonstrated by the Sanonda tender offer that we completed during the fourth quarter. We remain focused on ADAMA's long term strategy to support farmers around the world."

Chen Lichtenstein, ADAMA's President and CEO, commented, "We report another year of solid growth in sales and EBITDA despite an unfavorable currency environment especially in our APAC region and Brazil. We achieved growth across all of our regions; higher sales volumes and improved product mix that led to improvement in our financial performance. Our improved working capital management resulted in better cash flow balance for the year. In addition, we delivered continued positive results in Latin America, benefiting from positive market conditions in the region.

"In 2013 we continued to execute our strategic plan with specific emphasis on products and marketing, as well as, advancing our activities and operations in China. These core business elements are pivotal for our future competitive positioning and long-term growth."

FINANCIAL REVIEW

Sales: Revenues for the fourth quarter of 2013 increased by 13.1% to $655.7 million compared with $579.5 million for the fourth quarter of 2012. In constant currency terms, sales for the quarter increased by 14.2% year-over-year. The growth reflected higher quantities sold and selling prices, partially offset by currency effects.

For the 12-month period, sales increased by 8.5% to $3,076.4 million compared with $2,834.5 million for 2012. In constant currency terms, sales for the 12-month period increased by 10.0% compared with 2012.

On a geographical basis, the breakdown of sales was as follows:

(millions of USD)

Q4 2013

Q4 2012

Change

FY 2013

FY 2012

Change

Europe

136.2

136.6

(0.2%)

1,140.1

1,092.4

4.4%

Latin America

251.8

210.1

19.8%

757.5

643.0

17.8%

North America

126.0

107.6

17.1%

516.2

497.5

3.7%

Asia Pacific, Africa 
& the Middle East

114.2

98.3

16.2%

553.2

497.3

11.2%

Israel

27.5

27.0

2.1%

109.2

104.4

4.6%

Latin America: The strongest revenue growth continued to be reported by Latin America, which achieved a 19.8% sales increase for the fourth quarter and a 17.8% sales increase for the year as a whole. This reflected strong performance mainly in Brazil. In addition, the quarterly sales for Latin America included the contribution of new operations in Chile for the first time.

APAC, Africa & ME: Sales in Asia Pacific, Africa and the Middle East increased by 11.2% for the year and 16.2% for the quarter, reflecting increased quantities sold and selling prices. Regional sales were negatively impacted by the strengthening of local currencies in the region.

Europe: Sales in Europe rose by 4.4% for the year, while its fourth quarter sales remained stable as compared with the fourth quarter of 2012. The Company's European business was characterized by positive business momentum.

North America: Sales in North America increased by 3.7% for the year and 17.1% for the quarter.

Gross Profit: Gross profit for the fourth quarter totaled $186.0 million (28.4% of sales), up 17.2% compared with $158.7 million (27.4% of sales) for the parallel period of 2012. For the full year, gross profit totaled $968.1 million (31.5% of sales), up 7.6% compared with $899.6 million (31.7% of sales) in 2012.

The increase reflected higher quantities sold, an improved product mix and a rise in selling prices, offset partially by increased raw material prices, production costs and adverse currency effects.

Operating Expenses: R&D, Selling and General and Administrative expenses for the quarter totaled $174.9 million (26.7% of sales) compared with $155.7 million (26.9% of sales) for the fourth quarter of 2012. For the full-year period, operating expenses totaled $659.1 million (21.4% of sales) compared with $618.0 million (21.8% of sales) in 2012. The increase reflects the Company's strategic decision to increase its investments in research, development and branding.

Operating Profit: Operating profit for the fourth quarter totaled $11.1 million (1.7% of sales), more than triple the $3.0 million (0.5% of sales) reported in the fourth quarter of 2012. For the full year, operating profit increased by 9.7% to $309.0 million (10.0% of sales), compared with $281.6 million (9.9% of sales) for 2012.

Financing Expenses: Net financing expenses for the fourth quarter totaled $37.7 million compared with $27.2 million in the fourth quarter of 2012. For the full year, net financing expenses totaled $140.6 million compared with $110.3 million in 2012. The significant increase reflects the Company's issuance of debentures in January 2013; the increased hedging costs assumed due to the Company's growing sales in emerging markets. In addition the level of expenses increased due to the effect of changes in the Israeli CPI, the metric to which most of the Company's debentures are linked; and the updating of the value of PUT options to acquire investee companies which increased due to improved performance in those markets.

Net Income: For the fourth quarter of 2013, the Company recorded a net loss of $29.1 million (4.4% of sales) compared with a net loss of $21.9 million (3.8% of sales) for the fourth quarter of 2012. For the full year, the Company recorded net income of $127.1 million (4.1% of sales), a 3.7% increase compared with $122.6 million (4.3% of sales) for 2012.  Net income figures for the year were effected by higher financing and tax expenses when compared to previous periods.

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): EBITDA for the fourth quarter of 2013 increased by 25.5% to $51.5 million (7.9% of sales) compared with $41.1 million (7.1% of sales) for the fourth quarter of 2012. For the full year, EBITDA totaled $466.0 million (15.1% sales), an 8.4% increase compared with $429.8 million (15.2% of sales) for 2012.

Cash Flow: Positive cash flow generated by operating activities totaled $195.9 million for the fourth quarter of 2013, an 86% increase compared with $105.0 million in the fourth quarter of 2012. For the full year, cash flow totaled $362.5 million, a five-fold increase compared with $58.8 million in 2012. This significant increase derived primarily from an improved balance in operating working capital and the successful execution of hedge transactions in respect of the Company's long-term NIS-denominated debt.

China Integration

The Company is working intensively to maximize the potential of the merger with China National Agrochemical Corporation ("CNAC") and in this framework continues to make progress with the process of assessing the acquiring of all or part of the shares or assets of several companies directly or indirectly held by CNAC, while moving forward in the process of building a comprehensive business infrastructure within China.

During the fourth quarter, the Company successfully completed a partial tender offer to acquire 10.6% of the outstanding capital of Hubei Sanonda Co., Ltd. ("Sanonda"), an agrochemical company controlled by CNAC whose shares are traded on the Shenzhen Stock Exchange. In parallel, the Company continues to evaluate other business opportunities in China that will support the creation of significant research, operational and commercial infrastructure in China.

Further Information
All financial and legal filings, together with a presentation of the quarter's key financial highlights, can be accessed through the Company's website at www.ma-industries.com.

About ADAMA Agricultural Solutions
ADAMA Agricultural Solutions Ltd., formerly known as Makhteshim Agan Industries, is a leading global manufacturer and distributor of crop-protection solutions, and the leading off-patent provider. The Company supplies efficient solutions to farmers across the full farming value-chain, including crop-protection, novel agricultural technologies, and complementary non-crop businesses. In 2013, the Company's revenues were over $3 billion, and it is ranked seventh in the world in the overall agro-chemicals industry. The Company is characterized by its innovation, farmer-centric approach to product development, and strict standards of environmental protection and quality control. For more information, visit us at www.ma-industries.com.

Contact:
Anna Wood
Global Public Relations Coordinator
Email: [email protected]
Phone: +972 73 232 1941

SOURCE ADAMA Agricultural Solutions Ltd.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
SYS-CON Events announced today that MangoApps will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, explained how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
“delaPlex Software provides software outsourcing services. We have a hybrid model where we have onshore developers and project managers that we can place anywhere in the U.S. or in Europe,” explained Manish Sachdeva, CEO at delaPlex Software, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor – all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, discussed using predictive analytics to mon...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.