[一季报]安道麦B(200553):2025年第一季度报告（英文版）
ADAMA LTD. FIRST QUARTER REPORT 2025 ADAMA Ltd. (hereinafter referred to as “the Company”) is a global leader in crop protection, providing solutions to farmers across the world to combat weeds, insects and disease. ADAMA has one of the widest and most diverse portfolios of active ingredients in the world, state-of-the art R&D, manufacturing and formulation facilities, together with a culture that empowers our people in markets around the world to listen to farmers and ideate from the field. This uniquely positions ADAMA to offer a vast array of distinctive mixtures, formulations and high-quality differentiated products, delivering solutions that meet local farmer and customer needs in in dozens of countries globally, with direct presence in all top 20 markets. Please see important additional information and further details included in the Annex. April 2025 Important Notice The Company’s Board of Directors, Board of Supervisors, directors, supervisors and senior managers confirm that the content of the Report is true, accurate and complete and contains no false statements, misleading presentations or material omissions, and assume joint and several legal liability arising therefrom. Ga?l Hili, the person leading the Company (President and Chief Executive Officer) as well as its legal representative, and Efrat Nagar, the person leading the accounting function and the accounting body (Chief Financial Officer), hereby assert and confirm the truthfulness, accuracy and completeness of the financial information contained in the Report. The First Quarter Report has not been audited. Items of qualified opinion by the auditor □Applicable √Not applicable This Report has been prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chinese version shall prevail. I. Main Financial Data 1. Main accounting and financial results Whether the Company performs any retroactive adjustments to, or restatements of, its accounting data of last year □ Yes √ No
2. Non-Recurring profit/loss √ Applicable □ Not applicable Unit: RMB’000
Explanation of other profit or loss that meets the definition of non-recurring profit or loss □ Applicable √ Not applicable Explanation of why the Company classified an item as non-recurring profit/loss according to the definition in the First Explanatory Announcement on Information Disclosure for Companies Offering their Securities to the Public. Non-recurring Profit and Loss, and reclassified any non-recurring profit/loss item given as an example in the said explanatory announcement to recurrent profit/loss □ Applicable √ Not applicable No such cases during the Reporting Period. 3. Changes in main accounting statement items and financial indicators in the Reporting Period, as well as reasons for the changes √ Applicable □ Not applicable 1 General Crop Protection Market Environment Continuing the trend from 2024, key commodity crop prices remained subdued in Q1 2025, pressuring farmer income, despite some ease in the prices of inputs. While channel inventory levels continue to ease following pandemic-era stockpiling, the high-interest rate environment coupled with ample product supply driven by significant over-capacity production of active ingredients in China, continue to contribute to low active ingredient (“AI”) prices and a just-in-time purchasing approach by the channel. Geopolitical Situation ADAMA is headquartered and has three manufacturing sites in Israel. The regional tensions which escalated on October 7, 2023 have had no material impact to-date on the Company's ability to support its markets or its consolidated financial results. Regarding US tariff policies, the Company continues to closely monitor the situation and the potential impact on its global network. ‘Fight Forward’ Transformation Plan In early 2024, ADAMA launched 'Fight Forward', a strategic transformation plan aimed at gradually delivering 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 Value Innovation segment. As part of the Fight Forward transformation plan, the Company has initiated organizational changes to improve efficiencies.
Note: Since the functional currency of main overseas subsidiaries is the USD, and the Company’s management review of the Company’s performance is based on the USD results, following explanations and analysis are based on USD- denominated numbers as listed above. In this table and all tables in this report numbers may not sum due to rounding. Analysis of Financial Highlights (1) Revenues Revenues in the first quarter declined by approximately 5% (-4% in RMB; -3% in CER) to $1,000 million, 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 the first quarter is generally the most significant quarter of a year) and the continued shifting away from selected low profit products, amid improvement of channel inventories in most regions. The lower prices were due to just-in-time purchasing patterns of the channel and the pressure of low AI prices in light of overcapacity and a higher interest rate environment. Regional Sales Performance
of2024, with slight decrease in pricing and stable volumes. Volumes improvements in Europe were more than offset by declines in Turkey. Channel levels have returned to normal, but competition remains strong. North America: Consumer & Professional Solutions: Sales in the first quarter 2025 grew significantly compared to Q1 2024, and margins remained strong. ADAMA’s US Ag market grew, with slight improvements in volumes and pricing. Pricing in Canada continues to experience increased competition and downward price pressure, though sales are currently up on significantly stronger volume, partially due to normalized channel stocking behavior. Latin America: In Brazil, revenues in the first quarter of 2025 declined year-over-year due to lower prices, lower volumes and weak currency. Similarly, in the rest of LATAM, sales were weaker in the first quarter of 2025 as compared to the first quarter of 2024, mostly due to increased competition and just-in-time purchasing patterns. Asia Pacific (APAC): Sales in APAC (excluding China) continued to experience pricing pressure, with sales declining compared to the first quarter of 2024. The declines reflected both the ample over supply of Chinese generics and the Company’s decision to optimize regional layouts. In China, first quarter sales were up. AI sales increased, driven by significant business growth which more than offset weak prices, amid gradual recovery of global demand. Non-ag sales also increased supported mainly by higher prices of caustic soda. Declines in the branded formulations business mainly reflected the impacts of market competition on prices and volumes. (2) Cost of Goods and Gross Profit The higher gross profit and margin in the first quarter mainly reflected the positive impact of lower costs of new inventory sold, more than compensating for lower prices and negative exchange rate impacts. (3) Operating Expenses In the first quarter of 2025, the Company continued implementation of the Fight Forward transformation plan which was initiated at the beginning of 2024. Higher advisory and restructuring costs incurred than the same period last year, leading to higher reported general and administrative expenses. In addition, in Q1 2024 and 2025 it similarly recorded certain non-operational, mostly non-cash charges in its sales and marketing expenses, as the Company conducted corporate development activities, including mergers and acquisitions in recent years, which are mainly: (i) non-cash amortization charges in respect of transfer assets received from Syngenta related to the 2017 ChemChina-Syngenta acquisition; and (ii) non-cash amortization net charges related to intangible assets created as part of the Purchase Price Allocation (PPA) on acquisitions, with no impact on the ongoing performance of the companies acquired. The above items affected the Company’s reported OPEX amounting to RMB 177 million ($25 2 As part of ADAMA’s business optimization program, on January 1, 2025, South Africa was reclassified from the APAC region to EAME. million) in Q1 2025 in comparison to RMB 136 million ($19 million) in Q1 2024: Excluding the impact of the abovementioned non-operational charges, the operating expenses were lower in the first quarter of 2025, reflecting benefits from continued tight OPEX management measures as part of the Company's 'Fight Forward' transformation plan, and the positive impact of foreign exchange rates. (4) Financial Expenses “Financial Expenses” alone mainly reflect interest payments on corporate bonds and bank loans as well as foreign exchange gains/losses on the bonds and other monetary assets and liabilities before the Company carries out any hedging. The impact of Financial Expenses, net (before hedging) is RMB 22 million ($3 million) for Q1 2025, compared with Financial Expenses, net of RMB 367 million ($52 million) for the corresponding period in 2024. Given the global nature of its operational activities and the composition of its assets and liabilities, the Company, in the ordinary course of its business, uses foreign currency derivatives (forwards and options) to hedge the cash flow risks associated with existing monetary assets and liabilities that may be affected by exchange rate fluctuations. “Gains/Losses from Changes in Fair Value”, which recorded the hedging impacts among others amounted to a net loss of RMB 352 million ($49 million) in Q1 2025, compared with a net loss of RMB 149 million ($21 million) in the corresponding period in 2024. The aggregate of Financial Expenses and Gains/Losses from Changes in Fair Value (hereinafter as “Total Net Financial Expenses”), which more comprehensively reflects the financial expenses of the Company in supporting its main business and protecting its monetary assets/liabilities, amounted to RMB 374 million ($52 million) in Q1 2025 compared with RMB 516 million ($73 million) in the corresponding period in 2024. In the first quarter of 2025, financial expenses were lower mainly due to lower hedging costs, and lower interest paid on debt following improved efficiency of cash management in light of the positive cash flow achieved in the previous twelve months, and one-time income recorded following the arbitration decision related to a controlled subsidiary. (5) Income Tax Expenses The tax income in the first quarter of 2025 was mainly due to the non-cash impact of the stronger BRL and the method of calculation of tax assets related to unrealized profits. In the first quarter of 2024 despite reaching losses before tax, the Company recorded tax expenses in the quarter mainly because the losses were primarily incurred by subsidiaries with relatively lower tax rates, while some of them did not create deferred tax assets on the losses. On the other hand, the subsidiaries that generated profit have a higher tax rate. In addition, in the first quarter of 2024 the company recorded tax expenses due to the non-cash impact of the weakness of the BRL. Changes in main assets and liabilities Unit: 000 RMB
1. Total number of ordinary shareholders and preference shareholders who had resumed their voting right and shareholdings of top 10 shareholders at the period-end Unit: share
up Shares of Senior Management)
Involvement of Shareholders holding more than 5% of shares, Top 10 Shareholders and Top 10 Non-restricted Shareholders in Lending of Shares in the Relending Financing of Funds and Securities □ Applicable √ Not applicable Change from the Previous Reporting Period to the Top 10 Shareholders and Top 10 Non-restricted Shareholders due to the Lending/Returning of Shares in the Relending Financing of Funds and Securities □ Applicable √ Not applicable 2. Total number of preference shareholders and shareholdings of the top 10 of such at the period-end □ Applicable √ Not applicable III. Other Significant Events □ Applicable √ Not applicable IV. Financial Statements i. Financial statements 1. Consolidated balance sheet Prepared by ADAMA Ltd. 31 March 2025 Unit: RMB’000
Ga?l Hili Efrat Nagar Efrat Nagar Legal representative Chief of the accounting work Chief of the accounting organ 2. Consolidated income statement Unit: RMB’000
Ga?l Hili Efrat Nagar Efrat Nagar Legal representative Chief of the accounting work Chief of the accounting organ 3. Consolidated cash flow statement Unit: RMB’000
ii. Impacts of Initial Application of Accounting Standards for Business Enterprises on the Opening Balances of the Current Period □ Applicable √ Not applicable iii. Auditor’s report Is this Report audited? □ Yes √ No This Report is unaudited. ADAMA Ltd. Board of Directors April 29, 2025 中财网
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