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
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
What does it look like when you have access to cloud infrastructure and platform under the same roof? Let’s talk about the different layers of Technology as a Service: who cares, what runs where, and how does it all fit together. In his session at 18th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, an IBM company, spoke about the picture being painted by IBM Cloud and how the tools being crafted can help fill the gaps in your IT infrastructure.
SYS-CON Events announced today that Niagara Networks 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. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
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...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
SYS-CON Events announced today that Interface Masters Technologies, a leader in Network Visibility and Uptime Solutions, 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. Interface Masters Technologies is a leading vendor in the network monitoring and high speed networking markets. Based in the heart of Silicon Valley, Interface Masters' expertise lies in Gigabit, 10 Gigabit and 40 Gigabit Eth...
SYS-CON Events announced today that Sheng Liang to Keynote at SYS-CON's 19th Cloud Expo, which will take place on November 1-3, 2016 at the Santa Clara Convention Center in Santa Clara, California.
In his session at @ThingsExpo, Kausik Sridharabalan, founder and CTO of Pulzze Systems, Inc., will focus on key challenges in building an Internet of Things solution infrastructure. He will shed light on efficient ways of defining interactions within IoT solutions, leading to cost and time reduction. He will also introduce ways to handle data and how one can develop IoT solutions that are lean, flexible and configurable, thus making IoT infrastructure agile and scalable.
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, showed how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningful f...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, will discuss recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model f...