ADAMA Reports Third Quarter and First Nine Months 2024 Results"Fight Forward" transformation plan already presenting benefits with the quality of business
improving:
? Q3 2024 adjusted gross profit 14% above Q3 2023, representing a third consecutive quarterof improvement in adjusted gross margin. Profitability improvement achieved following strictmanagement of inventory supporting lower costs, as well as the continued focus ondifferentiated products and de-focus from low margin products supporting positive productsales mix;
? Q3 2024 adjusted EBITDA more than doubled over Q3 2023, second consecutive quarter of
improvement in EBITDA and EBITDA margin, with 9M 2024 adjusted EBITDA 6% above 9M2023, reflecting continued OPEX management measures;
? Significant improvement in cash flow despite challenging market conditions; Operating cashflow of $402 million achieved in 9M 2024 in comparison to $63 million in 9M 2023; Positivefree cash flow of $179 million achieved in 9M 2024 in comparison to a negative cash flow of$276 million in 9M 2023.Third Quarter 2024 Highlights:
? Sales down 10% to $929 million (-11% in RMB terms; -6% in CER
terms), mainly reflecting a 7%decrease in prices despite a 1% increase in volumes? Adjusted gross profit up 14% to $225 million (margin of 24.2%) from $198 million (margin of 19.2%)
in Q3 2023? Adjusted EBITDA up 125% to $80 million (margin of 8.6%) from $35 million (margin of 3.4%) inQ3 2023
? Adjusted net loss of $78 million; Reported net loss of $133 million? Improvement of $77 million in operating cash flow; of $159 million in Q3 2024 vs $82 million in Q3
2023
? Improvement of $150 million in free cash flow; $128 million in Q3 2024 vs -$22 million in Q3 2023
First Nine Months 2024 Highlights:
? Sales down 14% to $3,028 million (-13% in RMB terms; -12% in CER terms), mainly reflecting a
9% decrease in prices and a 3% decrease in volumes? Adjusted gross profit amounted to $782 million (margin of 25.8%) vs $815m (margin of 23.1%) in
9M 2023? Adjusted EBITDA up 6% to $332 million (margin of 11.0%) from $312 million (margin of 8.9%) in
9M 2023? Adjusted net loss of $149 million; Reported net loss of $259 million? Improvement of $339 million in operating cash flow; $402 million in 9M 2024 vs $63 million in 9M
2023? Improvement of $455 million in free cash flow; $179 million in 9M 2024 vs -$276 million in 9M 2023
CER – Constant Exchange Rates
BEIJING, CHINA and TEL AVIV, ISRAEL, October 30, 2024 – ADAMA Ltd. (the “Company”) (SZSE000553), today reported its financial results for the third quarter and first nine months of 2024 thatended September 30, 2024.Ga?l Hili, President and CEO of ADAMA, said, "ADAMA's financial results for the third quarter of2024 are an indication of the steady turnaround the Company is making. We have again demonstratedmarked improvements in our quality of business and cash generation. Our decision to de-focus fromcertain commoditized generics, coupled with our continued focus on higher value, differentiatedproducts, has led to improvement in the gross margin for the third quarter in a row and in the EBITDA& EBITDA margin for the second quarter in a row. The fierce competition in the market, mainly in suchcommoditized generics, validates this was the right decision for ADAMA."With three quarters of progressive improvements under our belt, I am confident that the "FightForward" transformation plan is putting the company on the right path for future success, and I planto accelerate its implementation. In the coming months we will implement our evolved operating modelaimed at deploying resources in countries where we can best drive profitable growth, enhancing ourcommercial operations, functional excellence, and customer engagement in key markets, creatinggreater cross company efficiencies. I also strongly believe that ADAMA's portfolio strategy focused ondelivering innovative products with attractive ROI for farmers is exactly the right one for the challengingmarket conditions we see, especially as farmer purchase power continues to be impacted across theworld."On a personal note, I am excited to join ADAMA at this transformative time and look forward toshaping the company, together with our Global Leadership Team, to face and succeed in thischallenging environment."Table 1. Financial Performance Summary
| USD (m) | As Reported | Adjustments | Adjusted | ||||||||
| Q3 2024 | Q3 2023 | % Change | Q3 2024 | Q3 2023 | Q3 2024 | Q3 2023 | % Change | ||||
Revenues
| Revenues | 929 | 1,033 | (10%) | - | - | 929 | 1,033 | (10%) | |||
| Gross profit | 188 | 185 | 2% | 37 | 12 | 225 | 198 | 14% | |||
| % of sales | 20.2% | 18.0% | 24.2% | 19.2% | |||||||
| Operating income (loss) (EBIT) | (34) | (38) | 12% | 46 | 7 | 13 | (31) | 141% | |||
| % of sales | (3.6%) | (3.7%) | 1.4% | (3.0%) | |||||||
| Loss before taxes | (122) | (110) | (12%) | 51 | (3) | (72) | (113) | 36% | |||
| % of sales | (13.2%) | (10.6%) | (7.7%) | (10.9%) | |||||||
| Net loss | (133) | (112) | (19%) | 55 | (4) | (78) | (115) | 32% | |||
| % of sales | (14.3%) | (10.8%) | (8.4%) | (11.2%) | |||||||
| EPS | |||||||||||
| - USD | (0.0569) | (0.0479) | (0.0335) | (0.0496) | |||||||
| - RMB | (0.4049) | (0.3435) | (0.2382) | (0.3556) | |||||||
| EBITDA | 56 | 37 | 49% | 24 | (2) | 80 | 35 | 125% | |||
| % of sales | 6.0% | 3.6% | 8.6% | 3.4% |
| USD (m) | As Reported | Adjustments | Adjusted | ||||||||
| 9M 2024 | 9M 2023 | % Change | 9M 2024 | 9M 2023 | 9M 2024 | 9M 2023 | % Change | ||||
Revenues
| Revenues | 3,028 | 3,524 | (14%) | - | - | 3,028 | 3,524 | (14%) | |||
| Gross profit | 672 | 748 | (10%) | 110 | 67 | 782 | 815 | (4%) | |||
| % of sales | 22.2% | 21.2% | 25.8% | 23.1% | |||||||
| Operating income (EBIT) | 1 | 94 | (99%) | 136 | 24 | 137 | 117 | 17% | |||
| % of sales | 0.0% | 2.7% | 4.5% | 3.3% | |||||||
| Loss before taxes | (203) | (155) | (31%) | 116 | 13 | (87) | (142) | 39% | |||
| % of sales | (6.7%) | (4.4%) | (2.9%) | (4.0%) | |||||||
| Net loss | (259) | (146) | (77%) | 110 | 11 | (149) | (135) | (9%) | |||
| % of sales | (8.5%) | (4.1%) | (4.9%) | (3.8%) | |||||||
| EPS | |||||||||||
| - USD | (0.1110) | (0.0626) | (0.0638) | (0.0580) | |||||||
| - RMB | (0.7890) | (0.4474) | (0.4535) | (0.4161) | |||||||
| EBITDA | 252 | 318 | (21%) | 80 | (6) | 332 | 312 | 6% | |||
| % of sales | 8.3% | 9.0% | 11.0% | 8.9% |
Notes:
? “As Reported” denotes the Company’s financial statements according to the Accounting Standards for Business Enterprises and theimplementation guidance, interpretations and other relevant provisions issued or revised subsequently by the Chinese Ministry ofFinance (the “MoF) (collectively referred to as “ASBE”). Note that in the reported financial statements, according to the ASBE guidelines[IAS 37], certain items (specifically certain transportation costs and certain idleness charges) are classified under COGS. Please seethe appendix to this release for further information.? Relevant income statement items contained in this release are also presented on an “Adjusted” basis, which exclude items that are of
a transitory or non-cash/non-operational nature that do not impact the ongoing performance of the business, and reflect the way theCompany’s management and the Board of Directors view the performance of the Company internally. The Company believes thatexcluding the effects of these items from its operating results allows management and investors to effectively compare the trueunderlying financial performance of its business from period to period and against its global peers. A detailed summary of theseadjustments appears in the appendix below.? The number of shares used to calculate both basic and diluted earnings per share in both Q3 and 9M 4202 and 2023 is 2,329.8 million
shares.? In this table and all tables in this release numbers may not sum due to rounding.
The General Crop Protection (CP) Market Environment
During the third quarter of 2024, key commodity crop prices remained subdued, pressuring farmerincome, despite some ease in the prices of inputs.While channel inventory continues to ease, the high interest rate environment coupled with ampleproduct supply and active ingredient prices from China remain at historic lows, continue to drive a just-in-time purchasing approach by the channel.These dynamics have negatively impacted the pricing in the crop protection market.
Sources: CCPIA (China Crop Protection Industry Association), BAIINFO, FocusEconomics, China Containerized Freight Index, internal
sources
Update on the War Situation in IsraelADAMA is headquartered in Israel and has three manufacturing sites in the country. The war situationin Israel, including recent developments, and tensions in the Red Sea and shipping disruptions, havenot had a material impact on the Company's ability to support its markets or on ADAMA’s consolidatedfinancial results."Fight Forward" Transformation PlanAs announced in the ADAMA's full year 2023 financial results report, ADAMA initiated a plan in thefirst quarter of 2024 to revalue ADAMA through improving the quality of the business to turnaroundthe Company. The Company-wide transformation plan is aimed at gradually delivering profit and cashtargets over a period of 3 years (2024-2026).Portfolio Development UpdateProduct Launches, Registrations:
During the third quarter of 2024 ADAMA continued to register and launch multiple new products inmarkets across the globe, adding on to its differentiated product portfolio.Differentiated products address specific grower needs with strong ROI for farmers through innovativeformulation technology and/or novel mixing concepts of Active Ingredients.Select launches of differentiated products during the third quarter of 2024 include:
? Launch of Bazak
?
in India, powered by ADAMA's proprietary formulation technology. Bazak
?
is an innovative dual mode insecticide controlling brown plant hoppers in rice, based on thecombination of two systemic molecules (Pymetrozine and Dinotefuran). ADAMA's proprietaryeffervescent formulation technology, which is patent protected, provides superior and fasterdisintegration of granules, once added in to spray water. This technology ensures easy mixingand ease of use in farm level application.? Launch of Upturn
?
in India, powered by Ayalon
?
formulation technology for enhancedspreading and penetration. Upturn
?
is a microemulsion formulation herbicide combining theactive ingredients Fomesafen and Propaquizafop, providing control over both broadleaf andgrassy weeds, ensuring enhanced crop protection for Pulses and Soybeans.Selected registrations of differentiated products during the third quarter of 2024 include:
? Registration of Prothioconazole based products in additional countries:
o Soratel
?
in Germany, Italy, Belgium and Bulgaria, powered by ADAMA’s proprietaryAsorbital
?Formulation Technologyo Maganic
?
in Germany, powered by ADAMA’s proprietary Asorbital
?
FormulationTechnologyo Forapro
?
in Hungary, powered by ADAMA’s proprietary Asorbital
?FormulationTechnologyo Maxentis
?in Argentina, Australia, Austria, Belgium, Poland, Slovakia, US
? Registration of Matos
?
in South Korea, an insecticide powered by Ayalon
?formulationtechnology for enhanced spreading and penetration. Matos is the first worldwide registrationof an ADAMA Spirotetramat based solution.? Registration of Edaptis
?
in Italy, Czech Republic and Greece. Edaptis
?
is an innovativedual mode action post emergence ready-to-use herbicide that provides broad-spectrumcontrol of grassy weeds and improved efficacy in combating resistant populations.? Registration of Plethora
?
in Mexico. Plethora is an innovative insecticide that combines twopotent active ingredients, Novaluron and Indoxacarb. Designed for broad-spectrum control ofchewing pests, it offers farmers the advantage of not needing to identify the specific pestbefore application.
? Registration of Sonavio
?
in Portugal. Sonavio is a selective herbicide based on Bifenox withhigh efficacy against broadleaf weeds and is suitable for use on various crops, notably somevegetables which currently have very few weed control solutions.Select patents granted during the third quarter of 2024 include:
? Patent granted in the USA for a stable liquid formulation of Clethodim and Fluroxypyr
combination, demonstrating ADAMA’s commitment to delivering advanced formulationtechnologies to improve ease of use for the farmer.? Patent granted in Ukraine for a mixture of Aminopyralid and Quinmerac, an efficient and
innovative mixture for combating weeds.Financial HighlightsRevenues in the third quarter declined by approximately 10% (-11% in RMB terms; -6% in CERterms) to $929 million, presenting a decrease of 7% in prices and an increase of 1% in volumes.The lower sales reflect lower market prices and de-focus from selected low profit products. Highcompetition from Chinese and Indians manufactures as well as declining active ingredient priceshave impacted the pricing of the overall crop protection market led by the pricing of commoditizedgeneric crop protection. Moreover, despite improvement in market inventory levels, the channel isexercising cautious buying patterns in light of price volatility and a higher interest rate environment.These results brought the revenues in the first nine months of 2024 to $3,028 million, a decline ofapproximately 14% (-13% in RMB terms; -12% in CER terms), reflecting a decrease of 9% in pricesand a decrease of 3% in volumes.
Table 2. Regional Sales Performance
| Q3 2024 $m | Q3 2023 $m | Change USD | Change CER | 9M 2024 $m | 9M 2023 $m | Change USD | Change CER |
Europe, Africa & Middle East
| Europe, Africa & Middle East | 203 | 235 | (14%) | (14%) | 882 | 999 | (12%) | (10%) |
North America
| North America | 158 | 133 | 19% | 19% | 572 | 568 | 1% | 1% |
Latin America
| Latin America | 287 | 350 | (18%) | (6%) | 687 | 912 | (25%) | (20%) |
Asia Pacific
| Asia Pacific | 282 | 315 | (11%) | (11%) | 887 | 1,044 | (15%) | (14%) |
Of which China
| Of which China | 109 | 130 | (16%) | (17%) | 384 | 453 | (15%) | (14%) |
Total
| Total | 929 | 1,033 | (10%) | (6%) | 3,028 | 3,524 | (14%) | (12%) |
Notes:
CER: Constant Exchange RatesNumbers may not sum due to rounding
Europe, Africa & Middle East (EAME):
Sales in EAME decreased in the third quarter and first nine months of 2024, following negativeweather conditions in Eastern, Central and Northen Europe, and strong competition across theregion, which have impacted pricing.North America: Consumer & Professional Solutions – Sales were higher in the third quarterand nine-month period supported by good weather, while the Company focused on higher marginproducts.In the US Ag market, sales increased in the third quarter supported by channel restocking againstchannel destocking in the corresponding quarter and decreased in the first nine months of 2024,following pricing pressure in light of competition and lower farmer profitability, just-in-timepurchasing patterns reflecting the high interest rate environment.ADAMA's sales in Canada in the third quarter were higher and reflected good demand for preand post harvest herbicides and fungicides, while the lower sales in the nine month period wereimpacted by low insecticide demand due to weather conditions.Latin America: Brazil – decline in sales in the third quarter and first nine months of 2024,reflecting the softer pricing following competition from Chinese competitors, “wait and see” famersbehavior postponing CP purchases, negative impact of weather as well as de-focus from non-selective herbicides. The Company is focusing its sales on higher margin products, with newproduct introductions of differentiated products continuing to do well.In the rest of LATAM sales in the third quarter and the first nine-month period reflected negativeweather conditions which have impacted the seasons across the region, while pricing wasimpacted by high competition. Despite this, new product introductions of differentiated productssupported sales.Asia-Pacific (APAC):
In China, the branded formulations sales in the third quarter were impacted by lower customerdemand due to high channel inventory, market competition and extreme weather events astyphoon in Southern China. The pricing pressure continued throughout the first nine months. TheNon-Ag business saw a stable demand and improved business quality despite the impact of lowerprices.In the Pacific region, sales in the third quarter and the first nine months were lower, impactedby softer pricing and just-in-time purchasing patterns. Sales in the third quarter were supportedby positive weather conditions in Eastern Australia and in New Zealand.Sales in India were stable in the third quarter and down in the nine-month period, impacted byerratic weather and softer pricing, particularly in commoditized products.Sales in the wider APAC region continued to experience pricing pressure following intensecompetition from China, particularly in commoditized products, and low demand as customersfocused on lowering stocks and tended to buy products as needed.Gross Profit reported in the third quarter increased by 2% to $188 million (gross margin of 20.2%)compared to $185 million (gross margin of 18.0%) in the same quarter last year and in the nine-monthperiod reached $672 million (gross margin of 22.2%), compared to $748 million (gross margin of
21.2%) last year.
Adjustments to reported results: The adjusted gross profit mainly includes reclassificationof all inventory impairment, taxes and surcharge and excludes certain transportation costs(classified under operating expenses), as well as a provision related to the soil & watercleanup and remediation regarding the Company's different sites in Israel.Adjusted gross profit in the third quarter increased by 14% to $225 million (gross margin of 24.2%)compared to $198 million (gross margin of 19.2%) in the same quarter last year and in the nine-monthperiod reached $782 million (gross margin of 25.8%) compared to $815 million (gross margin of 23.1%)last year.Despite the decline in sales in the third quarter and first nine months of 2024, the Company improvedthe gross margin both in the third quarter and nine-month period following the positive impact of newinventory sold, priced at market levels and following management's focus on the quality of businesswhich led to an improvement in the sales mix of higher margin products, moderated by the negativeimpact of exchange rates. In the third quarter the Company also recorded a slight increase inquantities sold, which had a positive impact.Operating expenses reported in the third quarter of 2024 were $222 million (23.9% of sales),compared to $224 million (21.7% of sales) in the same quarter last year and reached $671 million(22.2% of sales) in the nine-month period compared to $655 million (18.6% of sales) last year.Adjustments to reported results: please refer to the explanation regarding adjustments to the grossprofit in respect to certain transportation costs, taxes and surcharges and inventory impairment.Additionally, the Company recorded certain non-operational items within its reportedoperating expenses amounting to $37 million in Q3 2024 in comparison to $7 million in Q32023 and $113 in 9M 2024 in comparison to $22 in 9M 2023. These include mainly (i)provisions, such as legal claims, registration impairment and update of registrationdepreciation (ii) measures to improve efficiencies, (iii) non-cash amortization charges inrespect of Transfer Assets received from Syngenta related to the 2017 ChemChina-Syngenta acquisition, (iv) charges related to the non-cash amortization of intangibleassets created as part of the Purchase Price Allocation (PPA) on acquisitions, with noimpact on the ongoing performance of the companies acquired. For further details onthese non-operational items, please see the appendix to this release.Adjusted operating expenses in the third quarter were $212 million (22.8% of sales), compared to$229 million (22.1% of sales) in the same quarter last year, and reached $645 million (21.3% of sales)in the nine month period compared to $698 million (19.8% of sales) last year.The operating expenses were lower in the third quarter and first nine months of 2024, followingundertaking tight OPEX management measures, including the impact of initiatives included in theCompany's transformation plan, lower transportation and logistics costs and the positive impact ofexchange rates.Operating income reported in the third quarter reached a loss of $34 million )-3.6% of sales)compared to a loss of $38 million (-3.7% of sales) in the third quarter of 2023 and amounted to $1million (0.0% of sales) in the nine month period compared to $94 million (2.7% of sales) last year.Adjusted operating income in the third quarter amounted to $13 million (1.4% of sales) comparedto a loss of $31 million (-3.0% of sales) in the same quarter last year and increased by 17% to $137million (4.5% of sales) in the nine-month period compared to $117 million (3.3% of sales) last year.EBITDA reported in the third quarter increased by 49% to $56 million (6.0% of sales) compared to$37 million (3.6% of sales) in the same quarter last year and amounted to $252 million (8.3% of sales)in the nine-month period compared to $318 million (9.0% of sales) last year.
Adjusted EBITDA in the third quarter increased by 125% to $80 million (8.6% of sales) compared to$35 million (3.4% of sales) in the same quarter last year and increased by 6% to $332 million (11.0%of sales) in the nine-month period compared to $312 million (8.9% of sales) last year.Adjusted financial expenses amounted to $84 million in the third quarter, compared to $82 millionin the corresponding quarter last year and amounted to $224 million in the nine-month periodcompared to $259 million last year.In the third quarter of 2024, the financial expenses were slightly higher due to higher hedging costson exchange rates, the net impact of a higher Israeli CPI on the ILS-denominated CPI-linked bondsmoderated by lower interest paid on loans following a decrease in loans in light of the positive cashflow achieved, better loan mix and improved efficiency of cash management.In the nine-month period the financial expenses were lower also due to lower interest paid on loans inlight of the positive cash flow achieved, better loan mix and improved efficiency of cash managementas well as the net impact of a lower Israeli CPI on the ILS-denominated CPI-linked bonds.Adjusted taxes on income in the third quarter amounted to tax expenses of $6 million, compared totax expenses of $3 million in the corresponding quarter last year and amounted to expenses of $61million in the first nine months of the year compared to a tax income of $7 million last year.Despite reaching losses before tax, the Company recorded tax expenses in the third quarter and firstnine months of the year mainly because the losses were primarily incurred by subsidiaries withrelatively lower tax rates, while some of them did not create deferred tax assets on the losses. On theother hand, the subsidiaries that generated profit have a higher tax rate.In first nine months of 2024 the company recorded tax expenses due to the non-cash impact of theweakness of the BRL compared with tax income due to stronger BRL in the first nine months of 2023.In the third quarter of 2024 the company recorded tax income due to the non-cash impact of thestronger BRL compared with tax expenses due to the weakness of the BRL in the third quarter of2023.Net loss reported in the third quarter was $133 million and $259 million in the nine-month period,compared to a net loss of $112 million and $146 million in the corresponding periods last year,respectively.Adjusted net loss in the third quarter was $78 million and $149 million in the nine-month period,compared to a net loss of $115 million and $135 million in the corresponding periods last year,respectively.Trade working capital as of September 30, 2024, was $2,218 million compared to $2,742 million asof September 30, 2023. Inventory held by the Company continued to decline from the end of 2023,including inventory of finished goods, and reached $1,740 million as of September 30, 2024, incomparison to $2,129 million as of September 30, 2023. The decrease in working capital was followingthe Company's implementation of selective procurement practices, which already began in 2023, andwhich led to a decrease in the level of inventory held by the Company and lower trade payables. TheCompany also improved its payable terms following implementation of initiatives part of theCompany's transformation plan. The decrease in receivables reflected the intensive collections as wellas the lower sales.Cash Flow: Operating cash flow of $159 million and $402 million was generated in the third quarterand first nine-month period in 2024 respectively, compared to $82 million generated in the third quarterand $63 million generated in the nine-month period in 2023. The operating cash flow was significantlyimproved in the third quarter and first nine months of 2024 due to the company maintaining strictprocurement practices, intensive collections and an improvement in supplier terms, reflectingimplementation of initiatives taken as part of the company's transformation plan.
Net cash used in investing activities was $7 million in the third quarter and $122 million in the firstnine-month period in 2024, compared to $69 million and $231 million in the corresponding periods lastyear, respectively. The lower cash used in investing activities in the third quarter and first nine monthsof 2024 reflected implementation of the Company's transformation plan including the prioritization ofinvestments in its manufacturing facilities as well as prioritization of investments in intangible assetsrelating to ADAMA's global registrations, in line with the optimization of the Company's portfolio. In thethird quarter of 2024, the Company recorded the sale of a real estate asset whereas in the first quarterof 2023 the company completed the acquisition of AgriNova New Zealand.Free cash flow of $128 million was generated in the third quarter and $179 million generated in thenine-month period compared to $22 million consumed in the third quarter and $276 million consumedin the corresponding periods last year, respectively, reflecting the aforementioned operating andinvesting cash flow dynamics.
Table 3. Revenues by operating segmentSales by segment
| Q3 2024 USD (m) | % | Q3 2023 USD (m) | % | 9M 2024 USD (m) | % | 9M 2023 USD (m) | % |
Crop Protection
| Crop Protection | 840 | 90% | 943 | 91% | 2,746 | 91% | 3,233 | 92% |
Intermediates andIngredients
| Intermediates and Ingredients | 89 | 10% | 90 | 9% | 282 | 9% | 291 | 8% |
Total
| Total | 929 | 100% | 1,033 | 100% | 3,028 | 100% | 3,524 | 100% |
Sales by product category
| Q3 2024 USD (m) | % | Q3 2023 USD (m) | % | 9M 2024 USD (m) | % | 9M 2023 USD (m) | % |
Herbicides
| Herbicides | 345 | 37% | 427 | 41% | 1,213 | 40% | 1,531 | 43% |
Insecticides
| Insecticides | 302 | 33% | 304 | 29% | 896 | 30% | 989 | 28% |
Fungicides
| Fungicides | 193 | 21% | 212 | 20% | 638 | 21% | 713 | 20% |
Intermediates andIngredients
| Intermediates and Ingredients | 89 | 10% | 90 | 9% | 282 | 9% | 291 | 8% |
Total
| Total | 929 | 100% | 1,033 | 100% | 3,028 | 100% | 3,524 | 100% |
Notes:
The sales split by product category is provided for convenience purposes only and is not representative of the way the Company ismanaged or in which it makes its operational decisions.Numbers may not sum due to rounding.
Further InformationAll filings of the Company, together with a presentation of the key financial highlights of the period,can be accessed through the Company website at www.adama.com.About ADAMA
ADAMA Ltd. is a global leader in crop protection, providing practical solutions to farmers across theworld to combat weeds, insects and disease. Our culture empowers ADAMA's people to actively listento farmers and ideate from the field. ADAMA's diverse portfolio of existing active ingredients, coupledwith its leading formulation capabilities and proprietary formulation technology platforms, uniquelyposition the company to develop high-quality, innovative and sustainable products, to address themany challenges farmers and customers face today. ADAMA serves customers in dozens of countriesglobally, with direct presence in all top 20 markets. For more information, visit us at www.ADAMA.comand follow us on Twitter? at @ADAMAAgri.
ContactRivka Neufeld Zhujun WangGlobal Investor Relations China Investor RelationsEmail: ir@adama.com Email: irchina@adama.com
Abridged Adjusted Consolidated Financial StatementsThe following abridged consolidated financial statements and notes have been prepared as described in Note 1 in thisappendix. While prepared based on the principles of Chinese Accounting Standards (ASBE), they do not contain all of theinformation which either ASBE or IFRS would require for a complete set of financial statements, and should be read inconjunction with the consolidated financial statements of both ADAMA Ltd. and Adama Agricultural Solutions Ltd. as filedwith the Shenzhen and Tel Aviv Stock Exchanges, respectively.Relevant income statement items contained in this release are also presented on an “Adjusted” basis, which exclude itemsthat are of a one-time or non-cash/non-operational nature that do not impact the ongoing performance of the business, andreflect the way the Company’s management and the Board of Directors view the performance of the Company internally.The Company believes that excluding the effects of these items from its operating results allows management and investorsto effectively compare the true underlying financial performance of its business from period to period and against its globalpeers.Abridged Consolidated Income Statement for the Third Quarter of 2024
| Adjusted3 | Q3 2024 USD (m) | Q3 2023 USD (m) | Q3 2024 RMB (m) | Q3 2023 RMB (m) |
Revenues
| Revenues | 929 | 1,033 | 6,613 | 7,407 |
Cost of Sales
| Cost of Sales | 702 | 815 | 4,994 | 5,846 |
Other costs
| Other costs | 2 | 20 | 20 | 142 |
Gross profit
| Gross profit | 225 | 198 | 1,600 | 1,418 |
% of revenue
| % of revenue | 24.2% | 19.2% | 24.2% | 19.2% |
Selling & Distribution expenses
| Selling & Distribution expenses | 162 | 169 | 1,151 | 1,215 |
General & Administrative expenses
| General & Administrative expenses | 33 | 36 | 236 | 259 |
Research & Development expenses
| Research & Development expenses | 14 | 15 | 102 | 110 |
Other operating expenses (income)
| Other operating expenses (income) | 3 | 8 | 21 | 56 |
Total operating expenses
| Total operating expenses | 212 | 229 | 1,509 | 1,640 |
% of revenue
| % of revenue | 22.8% | 22.1% | 22.8% | 22.1% |
Operating income (EBIT)
| Operating income (EBIT) | 13 | (31) | 90 | (222) |
% of revenue
| % of revenue | 1.4% | (3.0%) | 1.4% | (3.0%) |
Financial expenses
| Financial expenses | 84 | 82 | 600 | 587 |
Loss before taxes
| Loss before taxes | (72) | (113) | (510) | (809) |
Taxes on Income
| Taxes on Income | 6 | 3 | 45 | 20 |
Net loss
| Net loss | (78) | (115) | (555) | (829) |
% of revenue
| % of revenue | (8.4%) | (11.2%) | (8.4%) | (11.2%) |
Adjustments
| Adjustments | 55 | (4) | 388 | (28) |
Reported Net loss
| Reported Net loss | (133) | (112) | (943) | (800) |
% of revenue
| % of revenue | (14.3%) | (10.8%) | (14.3%) | (10.8%) |
Adjusted EBITDA
| Adjusted EBITDA | 80 | 35 | 569 | 254 |
% of revenue
| % of revenue | 8.6% | 3.4% | 8.6% | 3.4% |
Adjusted EPS
– Basic
| Adjusted EPS4 – Basic | (0.0335) | (0.0496) | (0.2382) | (0.3556) |
– Diluted
| – Diluted | (0.0335) | (0.0496) | (0.2382) | (0.3556) |
Reported EPS
– Basic
| Reported EPS5 – Basic | (0.0569) | (0.0479) | (0.4049) | (0.3435) |
– Diluted
| – Diluted | (0.0569) | (0.0479) | (0.4049) | (0.3435) |
For an analysis of the differences between the adjusted income statement items and the income statement items as reported in the financial
statements, see below “Analysis of Gaps between Adjusted Income Statement and Income Statement in Financial Statements”.
The number of shares used to calculate both basic and diluted earnings per share in both Q3 2024 and 2023 is 2,329.8 million shares.
Abridged Consolidated Income Statement for the First Nine Months of 2024
| Adjusted5 | 9M 2024 USD (m) | 9M 2023 USD (m) | 9M 2024 RMB (m) | 9M 2023 RMB (m) |
Revenues
| Revenues | 3,028 | 3,524 | 21,523 | 24,660 |
Cost of Sales
| Cost of Sales | 2,238 | 2,667 | 15,909 | 18,673 |
Other costs
| Other costs | 8 | 42 | 59 | 299 |
Gross profit
| Gross profit | 782 | 815 | 5,555 | 5,688 |
% of revenue
| % of revenue | 25.8% | 23.1% | 25.8% | 23.1% |
Selling & Distribution expenses
| Selling & Distribution expenses | 500 | 540 | 3,552 | 3,782 |
General & Administrative expenses
| General & Administrative expenses | 102 | 105 | 723 | 735 |
Research & Development expenses
| Research & Development expenses | 45 | 53 | 320 | 373 |
Other operating expenses (income)
| Other operating expenses (income) | (1) | 0 | (9) | 0 |
Total operating expenses
| Total operating expenses | 645 | 698 | 4,585 | 4,890 |
% of revenue
| % of revenue | 21.3% | 19.8% | 21.3% | 19.8% |
Operating income (EBIT)
| Operating income (EBIT) | 137 | 117 | 970 | 799 |
% of revenue
| % of revenue | 4.5% | 3.3% | 4.5% | 3.2% |
Financial expenses
| Financial expenses | 224 | 259 | 1,590 | 1,815 |
Loss before taxes
| Loss before taxes | (87) | (142) | (620) | (1,016) |
Taxes on Income
| Taxes on Income | 61 | (7) | 436 | (47) |
Net loss
| Net loss | (149) | (135) | (1,057) | (969) |
% of revenue
| % of revenue | (4.9%) | (3.8%) | (4.9%) | (3.9%) |
Adjustments
| Adjustments | 110 | 11 | 782 | 73 |
Reported Net loss
| Reported Net loss | (259) | (146) | (1,838) | (1,042) |
% of revenue
| % of revenue | (8.5%) | (4.1%) | (8.5%) | (4.2%) |
Adjusted EBITDA
| Adjusted EBITDA | 332 | 312 | 2,357 | 2,168 |
% of revenue
| % of revenue | 11.0% | 8.9% | 11.0% | 8.8% |
Adjusted EPS
– Basic
| Adjusted EPS6 – Basic | (0.0638) | (0.0580) | (0.4535) | (0.4161) |
– Diluted
| – Diluted | (0.0638) | (0.0580) | (0.4535) | (0.4161) |
Reported EPS
– Basic
| Reported EPS5 – Basic | (0.1110) | (0.0626) | (0.7890) | (0.4474) |
– Diluted
| – Diluted | (0.1110) | (0.0626) | (0.7890) | (0.4474) |
For an analysis of the differences between the adjusted income statement items and the income statement items as reported in the financial
statements, see below “Analysis of Gaps between Adjusted Income Statement and Income Statement in Financial Statements”.
The number of shares used to calculate both basic and diluted earnings per share in both 9M 2024 and 2023 is 2,329.8 million shares.
Abridged Consolidated Balance Sheet
| September 30 2024 USD (m) | September 30 2023 USD (m) | September 30 2024 RMB (m) | September 30 2023 RMB (m) |
Assets
| Assets |
Current assets:
| Current assets: |
Cash at bank and on hand
| Cash at bank and on hand | 596 | 737 | 4,178 | 5,294 |
Bills and accounts receivable
| Bills and accounts receivable | 1,219 | 1,327 | 8,539 | 9,529 |
Inventories
| Inventories | 1,740 | 2,129 | 12,192 | 15,284 |
Other current assets, receivables andprepaid expenses
| Other current assets, receivables and prepaid expenses | 278 | 266 | 1,946 | 1,908 |
Total current assets
| Total current assets | 3,832 | 4,459 | 26,855 | 32,015 |
Non-current assets:
| Non-current assets: |
Fixed assets, net
| Fixed assets, net | 1,746 | 1,759 | 12,233 | 12,629 |
Rights of use assets
| Rights of use assets | 79 | 90 | 555 | 646 |
Intangible assets, net
| Intangible assets, net | 1,386 | 1,457 | 9,714 | 10,461 |
Deferred tax assets
| Deferred tax assets | 208 | 245 | 1,460 | 1,758 |
Other non-current assets
| Other non-current assets | 100 | 102 | 702 | 730 |
Total non-current assets
| Total non-current assets | 3,520 | 3,653 | 24,665 | 26,224 |
Total assets
| Total assets | 7,352 | 8,112 | 51,520 | 58,240 |
Liabilities
| Liabilities |
Current liabilities:
| Current liabilities: |
Loans and credit from banks and otherlenders
| Loans and credit from banks and other lenders | 938 | 1,258 | 6,574 | 9,032 |
Bills and accounts payable
| Bills and accounts payable | 760 | 724 | 5,325 | 5,197 |
Other current liabilities
| Other current liabilities | 836 | 959 | 5,859 | 6,888 |
Total current liabilities
| Total current liabilities | 2,534 | 2,941 | 17,758 | 21,118 |
Long-term liabilities:
| Long-term liabilities: |
Loans and credit from banks and otherlenders
| Loans and credit from banks and other lenders | 380 | 423 | 2,666 | 3,038 |
Debentures
| Debentures | 944 | 1,003 | 6,613 | 7,200 |
Deferred tax liabilities
| Deferred tax liabilities | 43 | 42 | 304 | 305 |
Employee benefits
| Employee benefits | 81 | 90 | 570 | 648 |
Other long-term liabilities
| Other long-term liabilities | 547 | 458 | 3,830 | 3,290 |
Total long-term liabilities
| Total long-term liabilities | 1,995 | 2,017 | 13,982 | 14,480 |
Total liabilities
| Total liabilities | 4,530 | 4,958 | 31,741 | 35,598 |
Equity
| Equity |
Total equity
| Total equity | 2,823 | 3,154 | 19,779 | 22,642 |
Total liabilities and equity
| Total liabilities and equity | 7,352 | 8,112 | 51,520 | 58,240 |
Numbers may not sum due to rounding
Abridged Consolidated Cash Flow Statement for the Third Quarter of 2024
| Q3 2024 USD (m) | Q3 2023 USD (m) | Q3 2024 RMB (m) | Q3 2023 RMB (m) | |
| Cash flow from operating activities: | ||||
| Cash flow from operating activities | 159 | 82 | 1,131 | 591 |
| Cash flow from operating activities | 159 | 82 | 1,131 | 591 |
| Investing activities: | ||||
| Acquisitions of fixed and intangible assets | (38) | (74) | (274) | (529) |
| Net cash received from disposal of fixed assets, intangible assets and others | 30 | 1 | 212 | 6 |
| Other investing activities | 1 | 4 | 10 | 30 |
| Cash flow used for investing activities | (7) | (69) | (51) | (493) |
| Financing activities: | ||||
| Receipt of loans from banks and other lenders | 42 | 49 | 297 | 353 |
| Repayment of loans from banks and other lenders | (112) | (52) | (796) | (374) |
| Interest payment and other | (28) | (46) | (202) | (331) |
| Other financing activities | (22) | 138 | (157) | 987 |
| Cash flow used for financing activities | (121) | 89 | (853) | 635 |
| Effects of exchange rate movement on cash and cash equivalents | 1 | 1 | (63) | (23) |
| Net change in cash and cash equivalents | 32 | 103 | 158 | 710 |
| Cash and cash equivalents at the beginning of the period | 557 | 633 | 3,971 | 4,571 |
| Cash and cash equivalents at the end of the period | 589 | 736 | 4,129 | 5,281 |
| Free Cash Flow | 128 | (22) | 912 | (97) |
Numbers may not sum due to rounding
Abridged Consolidated Cash Flow Statement for the First Nine Months of 2024
| 9M 2024 USD (m) | 9M 2023 USD (m) | 9M 2024 RMB (m) | 9M 2023 RMB (m) | |
| Cash flow from operating activities: | ||||
| Cash flow used for operating activities | 402 | 63 | 2,862 | 526 |
| Cash flow from (used for) operating activities | 402 | 63 | 2,862 | 526 |
| Investing activities: | ||||
| Acquisitions of fixed and intangible assets | (151) | (244) | (1,074) | (1,707) |
| Net cash received from disposal of fixed assets, intangible assets and others | 34 | 5 | 242 | 37 |
| Acquisition of subsidiary | - | (22) | - | (148) |
| Other investing activities | (5) | 29 | (35) | 205 |
| Cash flow used for investing activities | (122) | (231) | (866) | (1,614) |
| Financing activities: | ||||
| Receipt of loans from banks and other lenders | 235 | 647 | 1,666 | 4,458 |
| Repayment of loans from banks and other lenders | (505) | (281) | (3,589) | (1,974) |
| Interest payments and other | (111) | (121) | (789) | (852) |
| Dividend to shareholders | - | (9) | - | (63) |
| Other financing activities | 1 | 63 | 8 | 467 |
| Cash flow from (used for) financing activities | (380) | 298 | (2,703) | 2,036 |
| Effects of exchange rate movement on cash and cash equivalents | 3 | (2) | (21) | 107 |
| Net change in cash and cash equivalents | (97) | 129 | (728) | 1,056 |
| Cash and cash equivalents at the beginning of the period | 686 | 607 | 4,857 | 4,225 |
| Cash and cash equivalents at the end of the period | 589 | 736 | 4,129 | 5,281 |
| Free Cash Flow | 179 | (276) | 1,276 | (1,849) |
Numbers may not sum due to rounding
Notes to Abridged Consolidated Financial StatementsNote 1: Basis of preparationBasis of presentation and accounting policies: The abridged consolidated financial statements for thequarters ended September 30, 2024 and 2023 incorporate the financial statements of ADAMA Ltd. and of all ofits subsidiaries (the “Company”), including Adama Agricultural Solutions Ltd. (“Solutions”) and its subsidiaries.The Company has adopted the Accounting Standards for Business Enterprises (ASBE) issued by the Ministryof Finance (the "MoF") and the implementation guidance, interpretations and other relevant provisions issuedor revised subsequently by the MoF (collectively referred to as “ASBE”).The abridged consolidated financial statements contained in this release are presented in both ChineseRenminbi (RMB), as the Company’s shares are traded on the Shenzhen Stock Exchange, as well as in UnitedStates dollars ($) as this is the major currency in which the Company’s business is conducted. For the purposesof this release, a customary convenience translation has been used for the translation from RMB to US dollars,with Income Statement and Cash Flow items being translated using the quarterly average exchange rate, andBalance Sheet items being translated using the exchange rate at the end of the period.The preparation of financial statements requires management to make estimates and assumptions that affectthe reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of thefinancial statements, and the reported amounts of revenues and expenses during the reporting period. Actualresults could differ from those estimated.Note 2: Abridged Financial StatementsFor ease of use, the financial statements shown in this release have been abridged as follows:
Abridged Consolidated Income Statement:
? “Gross profit” in this release is revenue less costs of goods sold, taxes and surcharges, inventory
impairment and other idleness charges (in addition to those already included in costs of goods sold);part of the idleness charges is removed in the Adjusted financial statements? “Other operating expenses” includes impairment losses (not including inventory impairment); gain (loss)from disposal of assets and non-operating income and expenses? “Operating expenses” in this release differ from those in the formally reported financial statements inthat certain transportation costs have been reclassified from COGS to Operating Expenses.? “Financial expenses” includes net financing expenses and gains/losses from changes in fair value.
Abridged Consolidated Balance Sheet:
? “Other current assets, receivables and prepaid expenses” includes financial assets held for trading;financial assets in respect of derivatives; prepayments; other receivables; and other current assets? “Fixed assets, net” includes fixed assets and construction in progress? “Intangible assets, net” includes intangible assets and goodwill? “Other non-current assets” includes other equity investments; long-term equity investments; long-term
receivables; investment property; and other non-current assets? “Loans and credit from banks and other lenders” includes short-term loans and non-current liabilities
due within one year? “Other current liabilities” includes financial liabilities in respect of derivatives; payables for employee
benefits, taxes, interest, dividends and others; advances from customers and other current liabilities? “Other long-term liabilities” includes long-term payables, provisions, deferred income and other non-
current liabilities
Income Statement Adjustments
| Q3 2024 USD (m) | Q3 2023 USD (m) | Q3 2024 RMB (m) | Q3 2023 RMB (m) |
Reported Net Loss
| Reported Net Loss | (133) | (112) | (943) | (800) |
Adjustments to COGS & Operating Expenses:
| Adjustments to COGS & Operating Expenses: |
1. Amortization of acquisition-related PPA and other acquisition related costs
| 1. Amortization of acquisition-related PPA and other acquisition related costs | 6 | 4 | 42 | 30 |
2. Amortization of Transfer assets received and written-up due to 2017
ChemChina-Syngenta transaction (non-cash)
| 2. Amortization of Transfer assets received and written-up due to 2017 ChemChina-Syngenta transaction (non-cash) | 5 | 5 | 37 | 34 |
3. Accelerated depreciation
| 3. Accelerated depreciation | 1 | 1 | 10 | 6 |
4. Incentive plans
| 4. Incentive plans | - | (2) | - | (16) |
5. ASBEs classifications COGS impact
| 5. ASBEs classifications COGS impact | (27) | (12) | (195) | (84) |
6. ASBEs classifications OPEX impact
| 6. ASBEs classifications OPEX impact | 27 | 12 | 195 | 84 |
7. Measures to improve efficiencies
| 7. Measures to improve efficiencies | 8 | - | 59 | - |
| 8. Provisions such as legal claims, registration impairment and update of registration depreciation | 19 | - | 139 | - |
9. Soil and water cleanup and remediation
| 9. Soil and water cleanup and remediation | 6 | - | 43 | - |
Total Adjustments to Operating Income (EBIT)
| Total Adjustments to Operating Income (EBIT) | 46 | 7 | 330 | 53 |
Total Adjustments to EBITDA
| Total Adjustments to EBITDA | 24 | (2) | 173 | (14) |
Adjustments to Financing Expenses:
| Adjustments to Financing Expenses: |
10. Non-cash adjustment related to put option revaluations
| 10. Non-cash adjustment related to put option revaluations | 3 | (11) | 21 | (77) |
11. Other financing expenses
| 11. Other financing expenses | 1 | - | 10 | - |
Adjustments to Taxes:
| Adjustments to Taxes: |
Taxes impact
| Taxes impact | 4 | (1) | 27 | (5) |
Total adjustments to Net loss
| Total adjustments to Net loss | 55 | (4) | 388 | (28) |
Adjusted Net Loss
| Adjusted Net Loss | (78) | (115) | (555) | (829) |
| 9M 2024 USD (m) | 9M 2023 USD (m) | 9M 2024 RMB (m) | 9M 2023 RMB (m) |
Reported Net loss
| Reported Net loss | (259) | (146) | (1,838) | (1,042) |
Adjustments to COGS & Operating Expenses:
| Adjustments to COGS & Operating Expenses: |
1. Amortization of acquisition-related PPA and other acquisition related costs
| 1. Amortization of acquisition-related PPA and other acquisition related costs | 14 | 13 | 97 | 88 |
2. Amortization of Transfer assets received and written-up due to 2017
ChemChina-Syngenta transaction (non-cash)
| 2. Amortization of Transfer assets received and written-up due to 2017 ChemChina-Syngenta transaction (non-cash) | 15 | 16 | 109 | 109 |
3. Accelerated depreciation
| 3. Accelerated depreciation | 3 | 2 | 22 | 16 |
4. Incentive plans
| 4. Incentive plans | - | (7) | - | (48) |
5. ASBEs classifications COGS impact
| 5. ASBEs classifications COGS impact | (87) | (65) | (617) | (452) |
6. ASBEs classifications OPEX impact
| 6. ASBEs classifications OPEX impact | 87 | 65 | 617 | 452 |
7. Measures to improve efficiencies
| 7. Measures to improve efficiencies | 23 | - | 166 | - |
8. Provisions such as legal claims, registration impairment and update of
registration depreciation
| 8. Provisions such as legal claims, registration impairment and update of registration depreciation | 63 | - | 451 | - |
9. Soil and water cleanup and remediation
| 9. Soil and water cleanup and remediation | 17 | - | 121 | - |
Total Adjustments to Operating Income (EBIT)
| Total Adjustments to Operating Income (EBIT) | 136 | 24 | 965 | 165 |
Total Adjustments to EBITDA
| Total Adjustments to EBITDA | 80 | (6) | 567 | (41) |
Adjustments to Financing Expenses:
| Adjustments to Financing Expenses: |
10. Non-cash adjustment related to put options revaluation
| 10. Non-cash adjustment related to put options revaluation | (30) | (11) | (212) | (77) |
11. Other financing expenses
| 11. Other financing expenses | 10 | - | 69 | - |
| Adjustments to Taxes: |
Taxes impact
| Taxes impact | (6) | (2) | (41) | (15) |
Total adjustments to Net loss
| Total adjustments to Net loss | 110 | 11 | 782 | 73 |
Adjusted Net loss
| Adjusted Net loss | (149) | (135) | (1,057) | (969) |
Notes:
1. Amortization of acquisition-related PPA and other acquisition related costs:
a. Amortization of Legacy PPA of 2011 acquisition of Solutions (non-cash): Under ASBE, since the third combined reporting for Q3 2017,the Company has inherited the historical “legacy” amortization charge that ChemChina previously was incurring in respect of its acquisitionof Solutions in 2011. This amortization is done in a linear manner on a quarterly basis, most of which will have been completed by the endof 2020.b. Amortization of acquisition-related PPA (non-cash) and other acquisition-related costs: Related mainly to the non-cash amortizationof intangible assets created as part of the Purchase Price Allocation (PPA) on acquisitions, with no impact on the ongoing performance ofthe companies acquired, as well as other M&A-related costs.
2. Amortization of Transfer assets received and written-up due to 2017 ChemChina-Syngenta transaction (non-cash): The proceeds fromthe Divestment of crop protection products in connection with the approval by the EU Commission of the acquisition of Syngenta by ChemChina,net of taxes and transaction expenses, were paid to Syngenta in return for the transfer of a portfolio of products in Europe of similar nature andeconomic value. Since the products acquired from Syngenta are of the same nature and with the same net economic value as those divested,and since in 2018 the Company adjusted for the one-time gain that it made on the divested products, the additional amortization charge incurreddue to the written-up value of the acquired assets is also adjusted to present a consistent view of Divestment and Transfer transactions, whichhad no net impact on the underlying economic performance of the Company. These additional amortization charges will continue until 2032 butat a reducing rate, yet will still be at a meaningful level until 2028.
3. Accelerated depreciation: These charges relate to accelerated depreciation attributed to the upgrade & relocation programs in China and Israel,in which production assets located in the old production sites in Huai’An and Beer-Sheva are in relocation process to new sites. Since some olderproduction assets may not be able to be relocated, or are not operational, these are depreciated over a shorter period.
4. Incentive plans: ADAMA granted certain of its employees, a long-term incentive (LTI) in the form of 'phantom' awards linked to the Company’sshare price. As such, the Company records an expense, or recognizes income, depending on the fluctuation in the Company’s share price,regardless of award exercises. To neutralize the impact of such share price movements on the measurement of the Company’s performanceand expected employee compensation and to reflect the existing phantom awards, in the Company’s adjusted financial performance, the LTI ispresented on an equity-settled basis in accordance with the value of the existing plan at the grant date.
5. 6. ASBEs classifications COGS impact: according to the ASBE guidelines [IAS 37], certain items (specifically certain transportation costs) are
classified under COGS.
7. Measures to improve efficiencies: ADAMA recorded costs due to certain measures initiated to improve efficiencies mainly personnel changes
8. Provisions such as legal claims, registration impairment and update of registration depreciation.
9. Soil and water cleanup and remediation: a wholly-owned indirect subsidiary of the Company filed with Israel's Ministry of EnvironmentalProtection a remediation plan regarding its plant in Be'er Sheva in Q2 2024. During Q3 2024 additional expenses were recorded regarding theCompany's sites in Israel.
10. Non-cash, non-recurring items due to revaluation of put options attributed to minority stake in subsidiaries.
11. Other financing expenses: Expenses mainly deriving from tax claims surcharges and inflation.
Exchange Rate Data for the Company's Principal Functional Currencies
| September 30 | Q3 Average | 9M Average | |||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | 2024 | 2023 | Change | |||
| EUR/USD | 1.119 | 1.060 | 5.60% | 1.098 | 1.088 | 0.97% | 1.087 | 1.083 | 0.34% | ||
| USD/BRL | 5.448 | 5.008 | -8.80% | 5.545 | 4.880 | -13.63% | 5.238 | 5.009 | -4.58% | ||
| USD/PLN | 3.819 | 4.370 | 12.60% | 3.899 | 4.138 | 5.76% | 3.963 | 4.236 | 6.45% | ||
| USD/ZAR | 17.094 | 18.939 | 9.74% | 17.971 | 18.66 | 3.67% | 18.481 | 18.347 | -0.73% | ||
| AUD/USD | 0.692 | 0.648 | 6.76% | 0.670 | 0.654 | 2.39% | 0.662 | 0.669 | -0.99% | ||
| GBP/USD | 1.341 | 1.223 | 9.61% | 1.300 | 1.265 | 2.73% | 1.277 | 1.244 | 2.65% | ||
| USD/ILS | 3.710 | 3.824 | 2.98% | 3.713 | 3.746 | 0.89% | 3.701 | 3.643 | -1.60% | ||
| USD L 3M | 4.59% | 5.39% | -0.8 bp | 5.08% | 5.39% | -0.31 bp | 5.24% | 3.56% | 1.68bp | ||
| September 30 | Q3 Average | 9M Average | |||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | 2024 | 2023 | Change | |||
| USD/RMB | 7.007 | 7.180 | -2.40% | 7.115 | 7.173 | -0.81% | 7.108 | 7.008 | 1.44% | ||
| EUR/RMB | 7.843 | 7.610 | 3.06% | 7.816 | 7.803 | 0.15% | 7.725 | 7.590 | 1.78% | ||
| RMB/BRL | 0.777 | 0.697 | -11.47% | 0.779 | 0.680 | -14.55% | 0.737 | 0.715 | -3.10% | ||
| RMB/PLN | 0.545 | 0.609 | 10.45% | 0.548 | 0.577 | 4.99% | 0.557 | 0.604 | 7.77% | ||
| RMB/ZAR | 2.439 | 2.638 | 7.52% | 2.526 | 2.601 | 2.88% | 2.600 | 2.618 | 0.69% | ||
| AUD/RMB | 4.847 | 4.652 | 4.20% | 4.766 | 4.693 | 1.56% | 4.707 | 4.687 | 0.43% | ||
| GBP/RMB | 9.396 | 8.783 | 6.98% | 9.250 | 9.077 | 1.90% | 9.074 | 8.714 | 4.13% | ||
| RMB/ILS | 0.529 | 0.533 | 0.59% | 0.522 | 0.522 | 0.08% | 0.521 | 0.520 | -0.16% | ||
| RMB Shibor 3M | 1.84% | 2.30% | -0.46 bp | 1.86% | 2.11% | -0.25bp | 2.04% | 2.27% | -0.23 bp | ||