Click here to close now.



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
The principles behind DevOps are not new - for decades people have been automating system administration and decreasing the time to deploy apps and perform other management tasks. However, only recently did we see the tools and the will necessary to share the benefits and power of automation with a wider circle of people. In his session at DevOps Summit, Bernard Sanders, Chief Technology Officer at CloudBolt Software, explored the latest tools including Puppet, Chef, Docker, and CMPs needed to...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
Advances in technology and ubiquitous connectivity have made the utilization of a dispersed workforce more common. Whether that remote team is located across the street or country, management styles/ approaches will have to be adjusted to accommodate this new dynamic. In his session at 17th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., focused on the challenges of managing remote teams, providing real-world examples that demonstrate what works and what do...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.
Father business cycles and digital consumers are forcing enterprises to respond faster to customer needs and competitive demands. Successful integration of DevOps and Agile development will be key for business success in today’s digital economy. In his session at DevOps Summit, Pradeep Prabhu, Co-Founder & CEO of Cloudmunch, covered the critical practices that enterprises should consider to seamlessly integrate Agile and DevOps processes, barriers to implementing this in the enterprise, and pr...
In most cases, it is convenient to have some human interaction with a web (micro-)service, no matter how small it is. A traditional approach would be to create an HTTP interface, where user requests will be dispatched and HTML/CSS pages must be served. This approach is indeed very traditional for a web site, but not really convenient for a web service, which is not intended to be good looking, 24x7 up and running and UX-optimized. Instead, talking to a web service in a chat-bot mode would be muc...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
Most people haven’t heard the word, “gamification,” even though they probably, and perhaps unwittingly, participate in it every day. Gamification is “the process of adding games or game-like elements to something (as a task) so as to encourage participation.” Further, gamification is about bringing game mechanics – rules, constructs, processes, and methods – into the real world in an effort to engage people. In his session at @ThingsExpo, Robert Endo, owner and engagement manager of Intrepid D...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
With microservices, SOA and distributed architectures becoming more popular, it is becoming increasingly harder to keep track of where time is spent in a distributed application when trying to diagnose performance problems. Distributed tracing systems attempt to address this problem by following application requests across service boundaries, persisting metadata along the way that provide context for fine-grained performance monitoring.
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...