TEL AVIV, ISRAEL and BEIJING, CHINA, January 30, 2024 – ADAMA Ltd. (the “Company”) (SZSE 000553),today provided an estimate regarding its financial performance for the full year of 2023.SalesFor the full year of 2023, ADAMA is expecting to report a decline in sales of approximately 12% - 21% in USDterms (8% - 17% in RMB terms), compared to the full year of 2022, reflecting lower volumes and prices as wellas the negative impact of exchange rates. The lower sales reflect market dynamics of high channel inventories,last-minute purchasing following channel destocking in light of high interest rates and pressure on cropprotection product pricing due to the lower channel demand and lower active ingredient pricing.Adjusted EBITDAIn the full year of 2023, the Company is expecting to report a decrease in adjusted EBITDA and its margin, incomparison to the full year of 2022. The decrease in adjusted EBITDA is due to the decline in sales, asdescribed above, high-cost inventory, inventory impairment, the negative impact of exchange rates and despitea decrease in operating expenses and its margin as well as an improvement in the Company's sales mix ofhigher margin products. In response to the market conditions the Company has taken active measures tomanage its COGS, procurement and OPEX that have led to a decrease in the level of inventory held and adecrease in operating expenses.Net LossIn the full year of 2023, the Company is expecting to report Adjusted & Reported Net Loss, compared toadjusted & reported net income in the full year of 2022. This is due to lower Operating Profit and an increasein financial expenses in light of higher bank interest expenses due to an increase in interest rates and in short-term loans. These financial expenses were moderated by the lower Israeli CPI.
Adjusted Net Income (loss) excludes the impact of transitory, non-operational or non-cash items, mainlyincluding:
i. Non-cash, non-recurring provision for asset impairment and income due to revaluation of put optionsattributed to minority stake in a subsidiary and holdback release.
| Adjusted Net Income (Loss) | Estimated FY 2023 | FY 2022 |
Net income (loss) attributable to shareholders(USD millions)
| Net income (loss) attributable to shareholders (USD millions) | (211)-(261) | 118 |
Earnings (loss) per share (USD)
| Earnings (loss) per share (USD) | (0.0906)-(0.1121) | 0.0505 |
Net income (loss) attributable to shareholders(RMB millions)
| Net income (loss) attributable to shareholders (RMB millions) | (1,513)-(1,870) | 740 |
Earnings (loss) per share (RMB)
| Earnings (loss) per share (RMB) | (0.6493)-(0.8026) | 0.3177 |
ii. Non-cash amortization charges in respect of Transfer assets received from Syngenta related to the2017 ChemChina-Syngenta acquisition;iii. Non-cash amortization net charges related to intangible assets created as part of the Purchase PriceAllocation (PPA) on acquisitions, with no impact on the ongoing performance of the companiesacquired;iv. Company measures to improve efficiencies;v. 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 March 26, 2024.
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 FY 2023 | FY 2022 |
Net income (loss) attributable to shareholders(USD millions)
| Net income (loss) attributable to shareholders (USD millions) | (209)-(259) | 96 |
Earnings (loss) per share (USD)
| Earnings (loss) per share (USD) | (0.0895)-(0.1110) | 0.0413 |
Net income (loss) attributable to shareholders(RMB millions)
| Net income (loss) attributable to shareholders (RMB millions) | (1,491)-(1,848) | 609 |
Earnings (loss) per share (RMB)
| Earnings (loss) per share (RMB) | (0.6400)-(0.7933) | 0.2616 |