Slower market recovery than expected impacting the Company's sales & profit

Third Quarter 2023 Highlights:

  • Sales down 24% to $1,033 million (-20% in RMB terms; -25% in CER terms), mainly reflecting 12% decrease in volume and 13% decrease in prices
  • Adjusted EBITDA amounted to $35 million vs. $171 million in Q3 2022
  • Adjusted net loss of $115 million; Reported net loss of $112 million

First Nine Months 2023 Highlights:

  • Sales down 17% to $3,524 million (-12% in RMB terms; -15% in CER terms), mainly reflecting 10% decrease in volume and 5% decrease in prices
  • Adjusted EBITDA amounted to $312 million vs. $611 million in the first nine months of 2022
  • Adjusted net loss of $135 million; Reported net loss of $146 million

Beijing, China and Tel Aviv, Israel (October 30, 2023) - ADAMA Ltd. (the “Company”) (SZSE 000553), today reported its financial results for the third quarter and nine-month period ended September 30, 2023.

Steve Hawkins, President and CEO of ADAMA, said, "ADAMA continues to contend with difficult market conditions, an outcome of the industry overstocking in 2022 and the current channel destocking to lower than normal inventory levels in light of global high interest rates. This is impacting the consumption of high-cost inventory by the market and the Company, putting pressure on profits. In response ADAMA has taken measures to control costs and improve efficiencies, including strict inventory management, focusing on selective procurement of high-margin products and a cross company reduction of operating expenses. With the season over in the northern hemisphere, we are now looking to the season in Brazil to understand the outlook for the full year of 2023.

"As mentioned in the past, agricultural markets are cyclical in nature. We are encouraged that farmer demand remains good, providing a positive outlook for the future. Farmer demand is the underlying, fundamental engine for these markets and is supported by historically elevated crop prices."

For more information, see ADAMA Reports Third Quarter and First Nine Months 2023 Results.