2024
TEL AVIV, ISRAEL and BEIJING, CHINA, January 22, 2025 – ADAMA Ltd. (the “Company”) (SZSE 000553),today provided an estimate regarding its financial performance for the full year of 2024. In early 2024, ADAMAlaunched 'Fight Forward', a strategic transformation plan aimed at gradually delivering improved profit andcash-targets over a three-year period. Improvements in certain key metrics, including free cash flow andadjusted financial results in 2024, reflect the plan's initial impact.SalesFor the full year of 2024, ADAMA is expecting to report a decline in revenues of approximately 7% to 16% inUSD to $3,934 million to $4,348 million (28 billion to 31 billion RMB), compared to the full year of 2023. Thelower revenues mainly reflect lower prices in 2024, due to just-in-time purchasing patterns of the channel inlight of price volatility and a higher interest rate environment, despite improved channel inventory levels.Volumes in Q4 2024 were up compared with Q4 2023 despite the Company’s shift away from selectedlow-profit products, marking the second consecutive quarter of volume growth.Adjusted EBITDA and Net LossFor the full year of 2024, the Company is expecting to report an increase in adjusted EBITDA and in its margin,in comparison to the full year of 2023. Despite the decrease in revenues, adjusted EBITDA and its marginimproved due to an increase in the gross margin, mainly reflecting the positive impact of lower costs of newinventory sold, an improved sales mix towards higher-margin products, and continued control of operatingexpenses, all following implementation of the Fight Forward plan.The Company expects to report an adjusted net loss in the range of USD 151 million to 261 million for the fullyear of 2024, compared to a loss of USD 236 million for the full year of 2023. The loss is attributable to higheradjusted operating profit and a decrease in financial expenses, in light of lower interest paid on loans, lowerput option revaluation, as well as the net impact of a lower Israeli CPI on the ILS-denominated CPI-linkedbonds, despite higher tax expenses.
Adjusted Net loss excludes the impact of transitory, non-operational or non-cash items, mainly including:
i. Non-cash amortization charges in respect of transfer assets received from Syngenta related to the
2017 ChemChina-Syngenta acquisition;
| Adjusted Net Loss | Estimated Full Year 2024 | Full Year 2023 |
Net loss attributable to shareholders (USDmillions)
| Net loss attributable to shareholders (USD millions) | (261)-(151) | (236) |
Earnings per share (USD)
| Earnings per share (USD) | (0.112)-(0.0648) | (0.1013) |
Net loss attributable to shareholders (RMBmillions)
| Net loss attributable to shareholders (RMB millions) | (1,860)-(1,073) | (1,691) |
Earnings per share (RMB)
| Earnings per share (RMB) | (0.7982)-(0.4604) | (0.7260) |
ii. 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;iii. Restructuring costs incurred as part of the implementation of the Fight Forward transformation plan;iv. Fixed asset impairment related to improvement of operational efficiency, as part of the Fight Forwardplan;v. Provisions such as legal claims, registration impairment and update of registration depreciation;vi. Soil and water cleanup and remediation;vii. Financial expenses including non-cash adjustments related to revaluation of put options attributed to
minority stakes in subsidiaries, and expenses deriving from tax claims surcharges and inflation.
Reported EBITDA and Net LossThe Company expects lower reported EBITDA and deepened reported net loss (which include the impact ofthe above adjusted items) for the full year of 2024 compared to 2023. This expectation is mainly due to lowerreported operating profit and a higher tax burden, despite a decrease in financial expenses as explained above.
The estimated results of the Company are a preliminary estimation of the Company and have not been auditedor reviewed by certified accountants. However, the Company and the external auditor have preliminarilycommunicated regarding relevant matters of the performance estimation and have no material disagreement.These estimations may change as a result of the further processing and analysis of the financial data that theCompany will perform for the preparation of its financial statements, which are expected to be released aftertrading hours on March 13, 2025.
Investors are reminded to exercise caution when making investment decisions.
##
About ADAMAADAMA Ltd. is a global leader in crop protection, providing practical solutions to farmers across the world tocombat weeds, insects and disease. Our culture empowers ADAMA's people to actively listen to farmers andideate from the field. ADAMA's diverse portfolio of existing active ingredients, coupled with its leading
| Reported Net Loss | Estimated Full Year 2024 | Full Year 2023 |
Net loss attributable to shareholders (USDmillions)
| Net loss attributable to shareholders (USD millions) | (470)-(360) | (225) |
Earnings per share (USD)
| Earnings per share (USD) | (0.2017)-(0.1545) | (0.0964) |
Net loss attributable to shareholders (RMBmillions)
| Net loss attributable to shareholders (RMB millions) | (3,351)-(2,564) | (1,606) |
Earnings per share (RMB)
| Earnings per share (RMB) | (1.4384)-(1.1006) | (0.6893) |
formulation capabilities and proprietary formulation technology platforms, uniquely position the company todevelop high-quality, innovative and sustainable products, to address the many challenges farmers andcustomers face today. ADAMA serves customers in dozens of countries globally, with direct presence in all top20 markets. For more information, visit us at www.ADAMA.com and follow us on X at @ADAMAAgri.
ContactJoshua Phillipson Zhujun WangGlobal Investor Relations China Investor RelationsEmail: ir@adama.com Email: irchina@adama.com