Adama Posts Record Second Quarter
16 August 2017 Adama said its second-quarter net profit jumped 20% to $68 million, on robust sales in India, Europe, and the Asia-Pacific region.
Sales in the period rose 2.8% to $830 million while volume increased 7.3% “with strong momentum for differentiated products.”
Especially strong performances were recorded in the India, Middle East and Africa region as well as in Asia Pacific. The strong volume growth was partially offset by the passing on to customers of a portion of the ongoing reduction in costs.
Commenting on the results, Yang Xingqiang, Chairman of Adama’s Board of Directors, said, “These exceptional results, both over the quarter and in the year-to-date, stand out in an overall challenging agricultural market, and once again demonstrate the resilience of Adama’s business as well as the dedication and determination of its people. With the combination of Adama and Sanonda now completed, we are looking forward to an enormously promising future for the combined group.”
Chen Lichtenstein, President and CEO of Adama, added, “In this quarter, our last before returning to the public equity market, we have delivered double-digit increases in all profit and profitability metrics, reaching record highs. Our profitable growth trajectory, driven by our increasingly differentiated portfolio, is resulting in strong cash flow generation and reduced leverage, allowing us to continue to invest in the development of our business globally. We are in a strong business and financial condition, ready to capitalize on the many growth opportunities that lie ahead.”
The outstanding performance in India was driven by significant volume growth of an increasingly differentiated portfolio, while benefiting from the early start of the monsoon season. Adama is establishing leading positions in products based on molecules sourced from Sanonda, such as ACEMAIN® and TAPUZ®, a differentiated mixture for insect control.
In Turkey, its leading sugar beet portfolio continues to perform well. Sales in South Africa were negatively impacted by drought conditions.
Source: Adama
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