TEL AVIV, ISRAEL and BEIJING, CHINA, July 14, 2023 – ADAMA Ltd. (the “Company”) (SZSE 000553),today provided an estimate regarding its financial performance for the first half year of 2023.SalesFor the first half year of 2023, ADAMA is expecting to report a decline in sales of approximately 14% in USDterms (8% in RMB terms), compared to the first half year of 2022, mainly reflecting lower volumes, as well asthe negative impact of exchange rates and prices. The lower sales reflect market dynamics of channeldestocking in light of high interest rates and a "wait and see" approach, given the high inventory in the channeland declining active ingredient pricing. Additionally, sales were also impacted by negative weather conditionsin certain geographies. This is in comparison to H1 2022, in which the Company achieved record salesreflecting high demand due to supply uncertainty in the market.Adjusted EBITDAIn the first half year of 2023, the Company is expecting to report a decrease in adjusted EBITDA and its margin,in comparison to the first half year of 2022. The decrease in adjusted EBITDA is due to the decline in sales,as described above, high-cost inventory, exchange rates and despite a decrease in operating expenses andimprovement in the Company's sales mix of higher margin products. In response to the market conditions theCompany has taken certain measures to manage its COGS and OPEX.Net LossIn the first half year of 2023, the Company is expecting to report Adjusted & Reported Net Loss, comparedto adjusted & reported net income in the first half year of 2022. This is due to lower Operating Profit and anincrease in financial expenses in light of higher bank interest expenses due to an increase in short-term loansas well as the sharp increase in interest rates which also impacted hedging costs on exchange rates. Thesefinancial expenses were moderated by the lower Israeli CPI. The Company anticipates that once expensivemarket inventories have been depleted, the overall market dynamics should stabilize.
Adjusted Net Income (loss) excludes the impact of transitory, non-operational or non-cash items, mainlyincluding:
i. Non-cash amortization charges in respect of Transfer assets received from Syngenta related to the
2017 ChemChina-Syngenta acquisition;
| Adjusted Net Income (Loss) | Estimated H1 2023 | H1 2022 |
Net income (loss) attributable to shareholders(USD millions)
| Net income (loss) attributable to shareholders (USD millions) | (27)-(13) | 151 |
Earnings per share (USD)
| Earnings per share (USD) | (0.012)-(0.006) | 0.0648 |
Net income (loss) attributable to shareholders(RMB millions)
| Net income (loss) attributable to shareholders (RMB millions) | (190)-(92) | 978 |
Earnings per share (RMB)
| Earnings per share (RMB) | (20.08)-(390.0) | 0.4197 |
ii. Non-cash amortization net charges related to intangible assets created as part of the Purchase Price
Allocation (PPA) on acquisitions, with no impact on the ongoing performance of the companiesacquired;iii. Incentive plans: ADAMA granted certain of its employees, a long-term incentive (LTI) in the form of
'phantom' awards linked to the Company’s share price. As such, the Company records an expense, orrecognizes income, depending on the fluctuation in the Company’s share price, regardless of awardexercises. To neutralize the impact of such share price movements on the measurement of theCompany’s performance and expected employee compensation and to reflect the existing phantomawards, in the Company’s adjusted financial performance, the LTI is presented on an equity-settledbasis in accordance with the value of the existing plan at the grant date.
These estimations are preliminary and have not been audited or reviewed by the Company's auditors. Theseestimations may change, inter alia, as a result of the further processing and analysis of the financial data thatthe Company will perform for the preparation of its financial statements which will be released after the tradinghours on August 31, 2023.
Investors are reminded to exercise caution when making investment decisions.
##About ADAMAADAMA Ltd. (SZSE: 200553) is a global leader in crop protection, providing solutions to farmers across theworld to combat weeds, insects and disease. ADAMA has one of the widest and most diverse portfolios ofactive ingredients in the world, state-of-the art R&D, manufacturing and formulation facilities, together with aculture that empowers our people in markets around the world to listen to farmers and ideate from the field.This uniquely positions ADAMA to offer a vast array of distinctive mixtures, formulations and high-qualitydifferentiated products, delivering solutions that meet local farmer and customer needs in over 100 countriesglobally. For more information, visit us at www.ADAMA.com and follow us on Twitter
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at @ADAMAAgri.
ContactRivka Neufeld Zhujun WangGlobal Investor Relations China Investor RelationsEmail: ir@adama.com Email: irchina@adama.com
| Reported Net Income (Loss) | Estimated H1 2023 | H1 2022 |
Net income (loss) attributable to shareholders(USD millions)
| Net income (loss) attributable to shareholders (USD millions) | (41)-(27) | 113 |
Earnings per share (USD)
| Earnings per share (USD) | (0.018)-(0.012) | 0.0487 |
Net income (loss) attributable to shareholders(RMB millions)
| Net income (loss) attributable to shareholders (RMB millions) | (291)-(193) | 732 |
Earnings per share (RMB)
| Earnings per share (RMB) | (50.12)-(30.08) | 0.3142 |