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
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Vulnerability management is vital for large companies that need to secure containers across thousands of hosts, but many struggle to understand how exposed they are when they discover a new high security vulnerability. In his session at 21st Cloud Expo, John Morello, CTO of Twistlock, addressed this pressing concern by introducing the concept of the “Vulnerability Risk Tree API,” which brings all the data together in a simple REST endpoint, allowing companies to easily grasp the severity of the ...
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
In his session at 21st Cloud Expo, James Henry, Co-CEO/CTO of Calgary Scientific Inc., introduced you to the challenges, solutions and benefits of training AI systems to solve visual problems with an emphasis on improving AIs with continuous training in the field. He explored applications in several industries and discussed technologies that allow the deployment of advanced visualization solutions to the cloud.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, discussed how data centers of the future will be managed, how the p...
"NetApp is known as a data management leader but we do a lot more than just data management on-prem with the data centers of our customers. We're also big in the hybrid cloud," explained Wes Talbert, Principal Architect at NetApp, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, provided a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to oper...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...