ADAMA Reports First Quarter 2025 Results
Positive net profit reported for Q1 2025
BEIJING, CHINA and TEL AVIV, ISRAEL, April 28, 2025 – ADAMA Ltd. (the “Company”) (SZSE000553), today reported its financial results for the first quarter ended March 31
st, 2025.First Quarter 2025 Highlights:
? Sales down 5% (-4% in RMB; -3% in CER) to $1,000 million, mainly reflecting stable volume and4% decrease in prices? Adjusted gross profit up 5% to $303 million, representing an improvement of gross margin from
27.2% in Q1 2024 to 30.3% in Q1 2025, mainly reflecting the benefits of lower costs? Adjusted EBITDA up 21% to $160 million representing an improvement of EBITDA margin from
12.5% in Q1 2024 to 16.0% in Q1 2025
? Adjusted net income of $44 million compared to a loss of $10 million in Q1 2024; Reported net
income up to $21 million from a loss of $32 million in Q1 2024
? Operating cash flow improved by $75 million; -$29 million in Q1 2025 vs. -$103 million in Q1
2024? Free cash flow improved by $108 million, -$86 million in Q1 2025 vs. -$194 million in Q1 2024
Ga?l Hili, President and CEO of ADAMA, said, “I’m encouraged to see additional positive data,which can be attributed to the ongoing implementation of ADAMA’s Fight Forward strategictransformation plan. In addition to improved operational and free cash flow and continued growth ofadjusted gross profit and EBITDA and their margins, in Q1 2025 we saw a positive quarterly net profit.I congratulate ADAMA’s team for their efforts to improve operational efficiencies. Despite challengingmarket conditions, I’m optimistic our recent achievements provide momentum towards further successas we focus on providing long-term value both to our investors and to farmers throughout the world.”
Table 1. Financial Performance Summary
| USD (m) | As Reported | Adjustments | Adjusted | ||||||||
| Q1 2025 | Q1 2024 | % Change | Q1 2025 | Q1 2024 | Q1 2025 | Q1 2024 | % Change | ||||
Revenues
| Revenues | 1,000 | 1,057 | (5%) | - | - | 1,000 | 1,057 | (5%) | |||
| Gross profit | 272 | 256 | 6% | 31 | 32 | 303 | 288 | 5% | |||
| % of sales | 27.2% | 24.2% | 30.3% | 27.2% | |||||||
| Operating income (EBIT) | 70 | 51 | 38% | 26 | 21 | 96 | 72 | 34% | |||
| % of sales | 7.0% | 4.8% | 9.6% | 6.8% | |||||||
| Income (loss) before taxes | 18 | (21) | 23 | 23 | 42 | 2 | 2189% | ||||
| % of sales | 1.8% | (2.0%) | 4.2% | 0.2% | |||||||
| Net Income (loss) | 21 | (32) | 23 | 22 | 44 | (10) | |||||
| % of sales | 2.1% | (3.0%) | 4.4% | (0.9%) | |||||||
| EPS | |||||||||||
| - USD | 0.0090 | (0.0138) | 0. 0188 | (0.0042) | |||||||
| - RMB | 0.0649 | (0.0977) | 0.1350 | (0.0297) | |||||||
| EBITDA | 144 | 120 | 19% | 16 | 12 | 160 | 132 | 21% | |||
| % of sales | 14.4% | 11.4% | 16.0% | 12.5% |
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 ofa 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 Q1 2025 and 2024 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 EnvironmentContinuing the trend from 2024, key commodity crop prices remained subdued in Q1 2025, pressuringfarmer income, despite some ease in the prices of inputs.While channel inventory levels continue to ease following pandemic-era stockpiling, the high-interestrate environment coupled with ample product supply driven by significant over-capacity production ofactive ingredients in China, continue to contribute to low active ingredient (“AI”) prices and a just-in-timepurchasing approach by the channel.
Portfolio Development Update
In Q1 2025, ADAMA continued to register and launch multiple new products in markets across theglobe, adding on to its differentiated product portfolio. As part of the Fight Forward plan, the Companyis focused on improving its overall portfolio mix, particularly by targeting the Value Innovation segment,with the intent of improving value delivered to all stakeholders.
Sources: AgbioInvestor Market Insight (February 2025), peer quarterly financial results, internal sources
In Q1 2025, launches of differentiated products included:
? Cazado in Canada: A novel OD herbicide formulation combining Pinoxaden andThiencarbazone-methyl, offering wheat growers the first in-crop solution to effectively controlwild oats and proactively combat grassy weed resistance.
? Prothioconazole-based Products Expansion: ADAMA continued to extend itsProthioconazole-based portfolio, launching several combination and solo formulations acrossEU and other key markets. Products such as Forapro
?, Maganic, PYRADRA
?, AVASTEL
?,and Soratel
? leverage ADAMA’s proprietary Asorbital
?Formulation Technology for enhanceduptake and systemic performance. Additionally, Maxentis
?—a unique combination ofProthioconazole and Azoxystrobin—was introduced to provide broad-spectrum diseaseprotection across multiple crops.? Gengfule in China: A powerful pre-emergent herbicide combining S-metolachlor andFlumioxazin, utilizing TOV oil dispersion formulation technology to offer broad-spectrumweed control with significant residual effect.? Stemper in the United Kingdom and Denmark: A Trinexapac-ethyl formulation that enhancescrop resilience and lodging resistance, supporting improved harvest outcomes for cerealgrowers.
? Timeline FX in Romania and Poland, a post-emergence triple-active herbicide combining
Pinoxaden, Florasulam, and Fluroxypyr. This combination offers broad-spectrum control ofboth broadleaf and grassy weeds in cereal crops, providing farmers with an effective tool tomanage weed resistance and enhance crop yields.
Registrations of differentiated products during Q1 2025 included:
? Temper More: Registered in the US. This new highly effective EW herbicide formulation was
developed using ADAMA’s proprietary SESGAMA platform. It combines Glufosinate-ammonium and S-metolachlor for a dual mode of action, providing broad-spectrum burndownweed control and robust residual control of grass and small-seeded broadleaf weeds.? Metamitron: Newly registered active ingredient in the US with both fruit thinning and herbicideactivities, depending of the formulation.? Brevis: Registered in the US, this highly effective fruit thinner based on Metamitron offers apowerful solution for managing flowering and fruiting on pome fruits.? Klinner: Registered in Brazil, this three-way mixture of Picoxystrobin, Prothioconazole andMancozeb is formulated using a unique technology that enables broad-spectrum control offoliar diseases in soybeans.? Lince: Registered in Brazil. A WG formulation combining Atrazine and Mesotrione, deliveringeffective control of a broad spectrum of weeds in corn and sugarcane.
In addition, notable patents granted during Q1 2025 included:
? New Zealand: A patent was granted for SESGAMA’s proprietary formulation technology.? China: A patent was granted for the proprietary formulation of Sierra
?
? Australia: A patent was granted for the proprietary formulation of Zulu
?XT
Geopolitical SituationADAMA is headquartered and has three manufacturing sites in Israel. The regional tensions whichescalated on October 7, 2023, have had no material impact to-date on the Company's ability to supportits markets or its consolidated financial results.Regarding US tariff policies, the Company continues to closely monitor the situation and the potentialimpact on its global network.
‘Fight Forward’ Transformation PlanIn early 2024, ADAMA launched 'Fight Forward', a strategic transformation plan aimed at graduallydelivering improved profit and cash targets over a three-year period. This plan has three main pillars:
Optimize financial management, streamline ADAMA’s operating model and focus on the ValueInnovation segment. As part of the Fight Forward transformation plan, the Company has initiatedorganizational changes to improve efficiencies.ESG update
ADAMA has published the Environmental, Social, and Corporate Governance (ESG) report for theyear ended 31 December 2024 (Link).Financial Highlights
Revenues in the first quarter declined by approximately 5% (-4% in RMB; -3% in CER) to $1,000million, reflecting stable volumes, a decrease of 4% in prices and negative foreign exchange impacts.The Company maintained stable volumes, with declines in Turkey (for which Q1 is generally the mostsignificant quarter of a year) and the continued shifting away from selected low profit products, amidimprovement of channel inventories in most regions. The lower prices were due to just-in-timepurchasing patterns of the channel and the pressure of low AI prices in light of overcapacity and ahigher interest rate environment.
Table 2. Regional Sales Performance
Notes:
? CER: Constant Exchange Rates? As part of ADAMA’s business optimization program, on January 1, 2025, ADAMA’s South Africa business was reclassified from APAC
operations to EAME operations. To enable meaningful comparisons, the 2024 data presented here includes South Africa under EAME.? Numbers may not sum due to rounding
| Q1 2025 $m | Q1 2024 $m | Change USD | Change CER |
Europe, Africa & Middle East
| Europe, Africa & Middle East | 356 | 377 | (6%) | (4%) |
North America
| North America | 219 | 191 | 15% | 15% |
Latin America
| Latin America | 147 | 191 | (23%) | (15%) |
Asia Pacific
| Asia Pacific | 278 | 298 | (7%) | (5%) |
Of which China
| Of which China | 166 | 154 | 8% | 8% |
Total
| Total | 1,000 | 1,057 | (5%) | (3%) |
Europe, Africa & Middle East (EAME): Revenues in Q1 2025 were down compared to Q1 2024,with slight decrease in pricing and stable volume. Volume improvements in Europe were morethan offset by declines in Turkey. Channel levels have returned to normal, but competitionremains strong.North America: Consumer & Professional Solutions: Q1 sales grew significantly compared toQ1 2024, and margins remained strong. ADAMA’s US Ag market grew, with slight improvementsin volumes and pricing. Pricing in Canada continues to experience increased competition anddownward price pressure, though sales are currently up on significantly stronger volume, partiallydue to normalized channel stocking behavior.Latin America: In Brazil, Q1 revenues declined YoY due to lower prices, lower volumes andweak currency. Similarly, in the rest of LATAM, sales were weaker in Q1 as compared to Q12024, mostly due to increased competition and just-in-time purchasing patterns.Asia-Pacific (APAC): Sales continued to experience pricing pressure, with sales decliningcompared to Q1 2024. The declines reflected both the ample over supply of Chinese genericsand the Company’s decision to optimize regional layouts.In China, first quarter sales were up. AI sales increased, driven by significant business growthwhich more than offset weak prices, amid gradual recovery of global demand. Non-ag sales alsoincreased supported mainly by higher prices of caustic soda. Declines in the branded formulationsbusiness mainly reflected the impacts of market competition on prices and volumes.Reported gross profit in the first quarter increased 6% to $272 million (gross margin of 27.2%) from$256 million (gross margin of 24.2%) in the same quarter last year.
Adjustments to reported results: The adjusted gross profit includes reclassification ofinventory impairment, taxes and surcharge and excludes certain transportation costs(classified under operating expenses).Adjusted gross profit in the first quarter increased 5% to $303 million (gross margin of 30.3%) from$288 million (gross margin of 27.2%) in the same quarter last year.The higher gross profit and margin in the first quarter mainly reflected the positive impact of lowercosts of new inventory sold, more than compensating for lower prices and negative exchange rateimpacts.Operating expenses reported in the first quarter were $202 million (20.2% of sales), compared to$206 million (19.4% of sales) in the corresponding period 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. Non-operating income and expenses are also reclassified into adjusted operating expenses.The Company recorded certain non-operational items within its reported operatingexpenses amounting to $25 million in Q1 2025 in comparison to $19 million in Q1 2024.These include mainly: i. non-cash amortization charges in respect of transfer assetsreceived from Syngenta related to the 2017 ChemChina-Syngenta acquisition; ii. non-cashamortization net charges related to intangible assets created as part of the Purchase PriceAllocation (PPA) on acquisitions, with no impact on the ongoing performance of thecompanies acquired; and iii. restructuring and advisory costs incurred as part of theimplementation of the Fight Forward transformation plan. For further details on these non-operational items, please see the appendix to this release.Adjusted operating expenses in the first quarter were $207 million (20.7% of sales), compared to$216 million (20.5% of sales) in the corresponding period last year.
The lower operating expenses mainly reflected benefits from continued tight OPEX managementmeasures as part of the Company's transformation plan, and the positive impact of foreign exchangerates.Operating income reported in the first quarter increased 38% to $70 million (7.0% of sales) comparedto $51 million (4.8% of sales) in the same quarter last year.Adjusted operating income in the first quarter increased 34% to $96 million (9.6% of sales) from$72 million (6.8% of sales) in the same quarter last year. The increase in operating income was acombined result of higher gross profit and lower operating expenses.EBITDA reported in the first quarter increased 19% to $144 million (14.4% of sales) from $120 million(11.4% of sales) in the same quarter last year.Adjusted EBITDA in the first quarter increased 21% to $160 million (16.0% of sales) from $132 million(12.5% of sales) in the same quarter last year.Adjusted financial expenses amounted to $54 million in the first quarter, compared to $70 million inthe corresponding period last year.In the first quarter of 2025, financial expenses were lower mainly due to lower hedging costs and lowerinterest paid on debt following improved efficiency of cash management in light of the positive cashflow achieved in the previous twelve months.Adjusted taxes on income in the first quarter amounted to an income of $2 million, compared toexpenses of $12 million in the corresponding period last year. The tax income in the first quarter of2025 was mainly due to the non-cash impact of the stronger BRL and the method of calculation oftax assets related to unrealized profits.Net income reported in the first quarter increased to $21 million, compared to a net loss of $32 millionin the corresponding period last year.After reflecting the impact of the abovementioned extraordinary and non-operational charges,adjusted net income in the first quarter increased to $44 million, compared to a loss of $10 million inthe corresponding period last year.Trade working capital as of March 31, 2025, was $2,256 million compared to $2,583 million as ofMarch 31, 2024. The decrease in working capital was mainly because of the decline in the level ofinventory, including that of finished goods, from $1,807 million as of March 31, 2024 to $1,604 millionas of March 31, 2025. The decline of inventories resulted from continued implementation of selectiveprocurement and enhanced inventory management. As the Company improved its payable termsfollowing implementation of initiatives as part of the Company's transformation plan, trade payablesslightly increased while procurement was strictly managed. The decrease in receivables reflected theintensive collections and the lower sales.Cash Flow: Operating cash flow of $29 million was consumed in the first quarter of 2025, comparedto $103 million in the same quarter last year. The negative operating cash flow, which is seasonallytypical for ADAMA in the first quarter, was significantly improved due to intensive collection andimproved business earnings.Net cash used in investing activities was $37 million in the first quarter of 2025, compared to $67million in the same quarter last year. The lower cash used in investing activities in Q1 2025 reflectedprioritization of investments in ADAMA’s manufacturing facilities and portfolio optimization.Free cash flow of $86 million was consumed in the first quarter of 2025, compared to $194 million inthe same quarter last year, reflecting the aforementioned operating and investing cash flow dynamics.
Table 3. Revenues by operating segmentSales by segment
| Q1 2025 USD (m) | % | Q1 2024 USD (m) | % |
Crop Protection
| Crop Protection | 906 | 91% | 961 | 91% |
Intermediates and Ingredients
| Intermediates and Ingredients | 94 | 9% | 96 | 9% |
Total
| Total | 1,000 | 100% | 1,057 | 100% |
Sales by product category
| Q1 2025 USD (m) | % | Q1 2024 USD (m) | % |
Herbicides
| Herbicides | 445 | 45% | 454 | 43% |
Insecticides
| Insecticides | 243 | 24% | 290 | 27% |
Fungicides
| Fungicides | 217 | 22% | 217 | 21% |
Intermediates and Ingredients
| Intermediates and Ingredients | 94 | 9% | 96 | 9% |
Total
| Total | 1,000 | 100% | 1,057 | 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 ADAMAADAMA 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 X at @ADAMAAgri.
ContactJoshua Phillipson 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 First Quarter
| Adjusted2 | Q1 2025 USD (m) | Q1 2024 USD (m) | Q1 2025 RMB (m) | Q1 2024 RMB (m) |
Revenues
| Revenues | 1,000 | 1,057 | 7,173 | 7,509 |
Cost of Sales
| Cost of Sales | 694 | 767 | 4,981 | 5,450 |
Other costs
| Other costs | 3 | 2 | 20 | 13 |
Gross profit
| Gross profit | 303 | 288 | 2,172 | 2,046 |
| % of revenue | 30.3% | 27.2% | 30.3% | 27.2% |
Selling & Distribution expenses
| Selling & Distribution expenses | 155 | 169 | 1,116 | 1,198 |
General & Administrative expenses
| General & Administrative expenses | 37 | 36 | 267 | 254 |
Research & Development expenses
| Research & Development expenses | 14 | 16 | 103 | 112 |
Other operating expenses
| Other operating expenses | 0 | (4) | 2 | (26) |
Total operating expenses
| Total operating expenses | 207 | 216 | 1,487 | 1,538 |
% of revenue
| % of revenue | 20.7% | 20.5% | 20.7% | 20.5% |
Operating income (EBIT)
| Operating income (EBIT) | 96 | 72 | 686 | 508 |
% of revenue
| % of revenue | 9.6% | 6.8% | 9.6% | 6.8% |
Financial expenses
| Financial expenses | 54 | 70 | 387 | 495 |
Income before taxes
| Income before taxes | 42 | 2 | 298 | 13 |
Taxes on Income
| Taxes on Income | (2) | 12 | (16) | 82 |
Net income (loss)
| Net income (loss) | 44 | (10) | 315 | (69) |
% of revenue
| % of revenue | 4.4% | (0.9%) | 4.4% | (0.9%) |
Adjustments
| Adjustments | 23 | 22 | 164 | 158 |
Reported net income (loss)
| Reported net income (loss) | 21 | (32) | 151 | (228) |
% of revenue
| % of revenue | 2.1% | (3.0%) | 2.1% | (3.0%) |
Adjusted EBITDA
| Adjusted EBITDA | 160 | 132 | 1,149 | 938 |
% of revenue
| % of revenue | 16.0% | 12.5% | 16.0% | 12.5% |
Adjusted EPS
– Basic
| Adjusted EPS3 – Basic | 0.0188 | (0.0042) | 0.1350 | (0.0297) |
– Diluted
| – Diluted | 0.0188 | (0.0042) | 0.1350 | (0.0297) |
Reported EPS
– Basic
| Reported EPS5 – Basic | 0.0090 | (0.0138) | 0.0649 | (0.0977) |
– Diluted
| – Diluted | 0.0090 | (0.0138) | 0.0649 | (0.0977) |
For an analysis of the differences between the adjusted income statement items and the income statement items as reported in the financialstatements, 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 Q1 2025 and 2024 is 2,329.8 million shares.
Abridged Consolidated Balance Sheet
| March 31 2025 USD (m) | March 31 2024 USD (m) | March 31 2025 RMB (m) | March 31 2024 RMB (m) |
Assets
| Assets |
Current assets:
| Current assets: |
Cash at bank and on hand
| Cash at bank and on hand | 518 | 523 | 3,720 | 3,710 |
Bills and accounts receivable
| Bills and accounts receivable | 1,400 | 1,521 | 10,049 | 10,789 |
Inventories
| Inventories | 1,604 | 1,807 | 11,510 | 12,824 |
Other current assets, receivables andprepaid expenses
| Other current assets, receivables and prepaid expenses | 238 | 230 | 1,708 | 1,663 |
Total current assets
| Total current assets | 3,760 | 4,081 | 26,988 | 28,955 |
Non-current assets:
| Non-current assets: |
Fixed assets, net
| Fixed assets, net | 1,623 | 1,767 | 11,649 | 12,533 |
Rights of use assets
| Rights of use assets | 77 | 86 | 551 | 607 |
Intangible assets, net
| Intangible assets, net | 1,360 | 1,447 | 9,760 | 10,267 |
Deferred tax assets
| Deferred tax assets | 197 | 223 | 1,413 | 1,585 |
Other non-current assets
| Other non-current assets | 94 | 106 | 673 | 755 |
Total non-current assets
| Total non-current assets | 3,350 | 3,629 | 24,046 | 25,747 |
Total assets
| Total assets | 7,110 | 7,710 | 51,034 | 54,703 |
Liabilities
| Liabilities |
Current liabilities:
| Current liabilities: |
Loans and credit from banks and otherlenders
| Loans and credit from banks and other lenders | 1,056 | 1,039 | 7,583 | 7,369 |
Bills and accounts payable
| Bills and accounts payable | 771 | 754 | 5,537 | 5,350 |
Other current liabilities
| Other current liabilities | 834 | 749 | 5,983 | 5,312 |
Total current liabilities
| Total current liabilities | 2,661 | 2,541 | 19,103 | 18,031 |
Long-term liabilities:
| Long-term liabilities: |
Loans and credit from banks and otherlenders
| Loans and credit from banks and other lenders | 285 | 476 | 2,044 | 3,374 |
Debentures
| Debentures | 865 | 965 | 6,207 | 6,848 |
Deferred tax liabilities
| Deferred tax liabilities | 37 | 41 | 266 | 294 |
Employee benefits
| Employee benefits | 77 | 97 | 554 | 687 |
Other long-term liabilities
| Other long-term liabilities | 519 | 536 | 3,725 | 3,806 |
Total long-term liabilities
| Total long-term liabilities | 1,783 | 2,115 | 12,796 | 15,009 |
Total liabilities
| Total liabilities | 4,444 | 4,657 | 31,899 | 33,040 |
Equity
| Equity |
Total equity
| Total equity | 2,666 | 3,035 | 19,135 | 21,663 |
| Total liabilities and equity | 1107, | 7,710 | 51,034 | 54,703 |
Abridged Consolidated Cash Flow Statement for the First Quarter
| Q1 2025 USD (m) | Q1 2024 USD (m) | Q1 2025 RMB (m) | Q1 2024 RMB (m) | |
| Cash flow from operating activities: | ||||
| Cash flow from operating activities | (29) | (103) | (207) | (735) |
| Cash flow from operating activities | (29) | (103) | (207) | (735) |
| Investing activities: | ||||
| Acquisitions of fixed and intangible assets | (44) | (66) | (317) | (468) |
| Net cash received from disposal of fixed assets, intangible assets and others | 2 | 1 | 14 | 4 |
| Other investing activities | 6 | (1) | 41 | (8) |
| Cash flow used for investing activities | (37) | (67) | (262) | (473) |
| Financing activities: | ||||
| Receipt of loans from banks and other lenders | 137 | 172 | 980 | 1,218 |
| Repayment of loans from banks and other lenders | (66) | (195) | (472) | (1,383) |
| Interest payment and other | (20) | (24) | (146) | (168) |
| Other financing activities | 23 | 49 | 162 | 349 |
| Cash flow from financing activities | 73 | 2 | 523 | 17 |
| Effects of exchange rate movement on cash and cash equivalents | 1 | 0 | (1) | 13 |
| Net change in cash and cash equivalents | 8 | (167) | 53 | (1,178) |
| Cash and cash equivalents at the beginning of the period | 499 | 686 | 3,584 | 4,857 |
| Cash and cash equivalents at the end of the period | 507 | 519 | 3,637 | 3,679 |
| Free Cash Flow | （86） | (194) | (615) | (1,376) |
Notes to Abridged Consolidated Financial StatementsNote 1: Basis of preparationBasis of presentation and accounting policies: The abridged consolidated financial statements for thequarters ended March 31, 2025 and 2024 incorporate the financial statements of ADAMA Ltd. and of all of itssubsidiaries (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, inventoryimpairment 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 in
that 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
| Q1 2025 USD (m) | Q1 2024 USD (m) | Q1 2025 RMB (m) | Q1 2024 RMB (m) |
Reported Net Income (Loss)
| Reported Net Income (Loss) | 21 | (32) | 151 | (228) |
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 | 4 | 4 | 26 | 26 |
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 | 39 | 36 |
3. ASBEs classifications COGS impact
| 3. ASBEs classifications COGS impact | (30) | (30) | (215) | (214) |
4. ASBEs classifications OPEX impact
| 4. ASBEs classifications OPEX impact | 30 | 30 | 215 | 214 |
5. Restructuring and advisory costs
| 5. Restructuring and advisory costs | 16 | 11 | 115 | 80 |
6. Other
| 6. Other | 1 | 1 | 5 | 6 |
Total Adjustments to Operating Income (EBIT)
| Total Adjustments to Operating Income (EBIT) | 26 | 21 | 185 | 148 |
Total Adjustments to EBITDA
| Total Adjustments to EBITDA | 16 | 12 | 118 | 82 |
Adjustments to Financing Expenses:
| Adjustments to Financing Expenses: |
7. Non-cash adjustment related to put options revaluation
| 7. Non-cash adjustment related to put options revaluation | 3 | 1 | 24 | 5 |
8. Arbitration decision related to a controlled subsidiary
| 8. Arbitration decision related to a controlled subsidiary | (4) | - | (32) | - |
9. Other financing expenses
| 9. Other financing expenses | (1) | 1 | (10) | 11 |
Adjustments to Taxes:
| Adjustments to Taxes: |
Taxes impact
| Taxes impact | - | )1( | )3( | )6( |
Total adjustments to Net Income (Loss)
| Total adjustments to Net Income (Loss) | 23 | 22 | 164 | 158 |
Adjusted Net Income (Loss)
| Adjusted Net Income (Loss) | 44 | (10) | 315 | (69) |
Notes:
1. Amortization of acquisition-related PPA and other acquisition related costs: Related mainly to the non-cash amortization of intangible
assets created as part of the Purchase Price Allocation (PPA) on acquisitions, with no impact on the ongoing performance of the companiesacquired, 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 from
the 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. & 4. ASBEs classifications COGS impact: according to the ASBE guidelines [IAS 37], certain items (specifically certain transportation costs)are classified under COGS.
5. Restructuring and advisory costs: The Company initiated its Fight Forward transformation plan in early 2024. Part of the plan includesrestructuring its organizational structure, workforce and managerial processes, and as a result thereof, the Company recorded restructuring andadvisory costs.
6. Other: Mainly attributable to accelerated depreciation associated with facilities upgrade.
7. Non-cash adjustment related to put options revaluation: expenses due to revaluation of put options attributed to minority stake in subsidiaries
8. Arbitration decision related to a controlled subsidiary: An arbitration case related to a controlled subsidiary incurred a one-time income.
Exchange Rate Data for the Company's Principal Functional Currencies
| March 31 | Q1 Average | |||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | |||
| EUR/USD | 1.082 | 1.081 | 0.1% | 1.051 | 1.086 | -3.2% | ||
| USD/BRL | 5.742 | 4.996 | -14.9% | 5.845 | 4.953 | -18.0% | ||
| USD/PLN | 3.864 | 3.989 | 3.1% | 3.996 | 3.992 | -0.1% | ||
| USD/ZAR | 18.21 | 18.87 | 3.5% | 18.492 | 18.896 | 2.1% | ||
| AUD/USD | 0.625 | 0.651 | -4.0% | 0.627 | 0.658 | -4.6% | ||
| GBP/USD | 1.294 | 1.264 | 2.4% | 1.259 | 1.268 | -0.8% | ||
| USD/ILS | 3.718 | 3.681 | -1.0% | 3.613 | 3.660 | 1.3% | ||
| USD L 3M | 4.30% | 5.30% | 4.30% | 5.32% | ||||
| March 31 | Q1 Average | |||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | |||
| USD/RMB | 7.765 | 7.095 | 9.4% | 7.763 | 7.103 | 9.3% | ||
| EUR/RMB | 7.178 | 7.670 | -6.4% | 7.176 | 7.678 | -6.5% | ||
| RMB/BRL | 0.800 | 0.704 | -13.6% | 0.815 | 0.697 | -16.8% | ||
| RMB/PLN | 0.538 | 0.704 | 23.6% | 0.557 | 0.562 | 0.9% | ||
| RMB/ZAR | 2.538 | 2.659 | 4.6% | 2.577 | 2.660 | 3.1% | ||
| AUD/RMB | 4.487 | 4.619 | -2.9% | 4.502 | 4.672 | -3.6% | ||
| GBP/RMB | 9.016 | 0.562 | -0.1% | 9.288 | 8.969 | 3.6% | ||
| RMB/ILS | 0.518 | 0.519 | 0.2% | 0.503 | 0.515 | 2.3% | ||
| RMB L 3M | 1.912 | 2.157% | -11.4% | 1.811% | 2.284% | -20.7% | ||