Adama Ltd. Class A SZSE:000553
ADAMA : Fourth Quarter 2024 Presentations
Source: MarketScreener
ADAMA Ltd Q4 & FY 2024 SUMMARY
Crop Protection Industry Status
Channel inventory | Just in time channel | |
levels continue to ease | purchasing patterns in light | |
of global high interest rates | ||
Pricing pressure led by overcapacity of crop protection commodities
Crop commodity prices | Farmer profitability pressured though | |
softening, but remain mildly | some ease in the prices of inputs | |
elevated into 2025 | ||
3
Q4 & FY 2024
Financial
Highlights
- Q4 2024 adjusted gross profit 14% above Q4 2023; Q4 2024 EBITDA 45% above Q4 2023; FY 2024 EBITDA 15% above FY 2023
- FY 2024 operating cash flow $528m, free cash flow $217m; (improvement of +$172m, +$364m vs FY 2023, respectively)
- Second consecutive quarter of gross profit growth and third consecutive quarter of EBITDA growth, representing improvement of gross and EBITDA margin in FY 2024, following:
- Continuation of efficient inventory management - significant YoY decrease in inventory levels (-$295mas of end of 2024) also supporting positive contribution of lower costs (in FY 2024 +$413m, in Q4 2024 +$85m)
- Positive product sales mix (+$53m in FY 2024 and +$17m in Q4 2024 vs. LY)
- Continued OPEX discipline (in FY 2024 - $68m vs LY, in Q4 2024 -$15m vs LY)
4
*LY- Last Year
Q4 2024
Higher Volume amid Channel Inventory Improvement, Offset by Pricing Pressure and FX
Adjusted | Q4 2024 | Q4 2023 | %▲ | |
$ million | ||||
Sales | 1,113 | 1,136 | (2%) | |
Gross Profit | 280 | 245 | 14% | |
% of Sales | ||||
25.2% | 21.5% | |||
EBITDA | 137 | 95 | 45% | |
% of Sales | 12.3% | 8.3% | ||
Net Loss | (58) | (101) | 43% | |
% of Sales | ||||
(5.2%) | (8.9%) | |||
Reported Loss | (149) | (79) | ||
% of Sales | (13.4%) | (6.9%) | ||
Q4 Highlights
Sales ▪ Sales down 2% to $1,113 million (up 2% at CER)
- 7% increase in volume, 4% lower prices and negative FX
- Volume growth in most geographies, while de-focusing from selected low-profit products
- Lower crop protection and active ingredient market prices mainly commodities
- Just-in-timepurchasing patterns
- Significant FX headwinds, particularly BRL
Gross ▪ Gross Profit 14% above Q4 2023; Improvement in Gross Margin
Profit 25.2% vs 21.5% LY
- Improvement in effect of lower costs of new inventory sold, volume growth and positive sales mix
EBITDA ▪ EBITDA 45% above Q4 2023; Improvement in EBITDA Margin 12.3% vs 8.3% LY
-
Lower OPEX (-$15m vs LY) following tight OPEX management measures, lower transportation and logistics costs and
the positive impact of exchange rates
Net Loss ▪ Loss reduced by 43%
- Lower financial expenses mainly due to lower net CPI impact, and lower interest costs net following an improved efficiency of cash management in light of the positive cash flow achieved.
5 | *LY - Last Year |
**CER - constant exchange rates | |
*** There may be some difference in percentages due to rounding |
FY 2024
Pricing Pressure, volumes returning in H2
Adjusted | FY 2024 | FY 2023 | %▲ | |
$ million | ||||
Sales | 4,141 | 4,661 | (11%) | |
Gross Profit | 1,061 | 1,060 | 0% | |
% of Sales | ||||
25.6% | 22.7% | |||
EBITDA | 469 | 407 | 15% | |
% of Sales | 11.3% | 8.7% | ||
Net Loss | (206) | (236) | 13% | |
% of Sales | ||||
(5.0%) | (5.1%) | |||
Reported Loss | (407) | (225) | ||
% of Sales | (9.8%) | (4.8%) | ||
FY Highlights
Sales | ▪ Sales down 11% to $4.1bn (down 8% in CER) |
- 8% lower prices, stable volume
- Lower crop protection and active ingredient market prices mainly commodities
- Significant FX headwinds, particularly BRL
- Volume recovery in H2, while de-focusing from selected low- profit products
- Just-in-timepurchasing patterns
Gross | ▪ Gross Profit flat with 2023; Improvement in Gross Margin 25.6% |
Profit | vs 22.7% LY: |
- Lower sales, moderated by lower costs of new inventory sold, and positive sales mix
EBITDA ▪ EBITDA 15% above FY 2023; Improvement in EBITDA Margin 11.3% vs 8.7% LY
-
Lower OPEX (-$68m vs LY) following tight OPEX management measures, lower transportation and logistics costs and
the positive impact of exchange rates
Net Loss ▪ Adjusted net loss reduced by 13%
- Lower financial expenses mainly due to lower net CPI impact, and lower interest costs, net following an improved efficiency of cash management in light of the positive cash flow achieved and, better loan mix.
6 | *LY - Last Year |
**CER - constant exchange rates | |
*** There may be some difference in percentages due to rounding |
Regional Sales Performance
Q4 2024 vs. Q4 2023
% Sales growth by region
Total sales & absolute change in sales ($m)
0%
Europe, Africa & Middle East
North America
Latin America
(6%)
Asia Pacific
Total
CER USD
11%
4%
of which, China:
6% CER;
5% USD
2%
(1) | 240 |
27 | 279 |
(31) | 348 | ||
(19) | of which, | 246 | |
China $5m |
(23) | 1,113 |
* CER - Constant Exchange Rates
8** APAC includes ADAMA India and ADAMA South Africa
*** EAME includes Israel, Turkey and the rest of Africa
Q4 2024 Sales
Sales bridge analysis
1,136 | 78 | -50 | -51 | 1,113 | ||||||
7% | ||||||||||
4% | 4% | 2% | ||||||||
Q4 2023∆ Volumes∆ PricesFXQ4 2024
▪ Volume growth in most geographies, while de-focusing from selected low-profit products | |
▪ Lower crop protection and active ingredient market prices | |
▪ AI overcapacity, just-in-time purchasing patterns | |
▪ Significant FX headwind, particularly BRL | |
Notes - | |
Numbers in million $; | |
10 | Denotes adjusted figures unless otherwise noted; |
Parts may not sum due to rounding; | |
FX includes currency effect on sales, net of hedging. |
Q4 2024:
Gross Profit & EBITDA
Gross Profit bridge analysis
Improvement in Gross Profit and Gross Margin
The gross profit was positively impacted by lower costs of new inventory sold, volume growth and positive sales mix
41 | 85 | |||||||||||
280 | ||||||||||||
245 | -41 | |||||||||||
-50 | ||||||||||||
21.5% | 25.2% | |||||||||||
Q4 2023 | ∆ Volumes | ∆ Prices | ∆ Cost | FX | Q4 2024 |
14%
EBITDA bridge analysis
Improvement in EBITDA and EBITDA Margin
Lower OPEX following tight OPEX management, as well as lower transportation and logistics costs
87 | ||||||||||||||||
41 | -1 | 137 | ||||||||||||||
95 | -34 | |||||||||||||||
-50 | 45% | |||||||||||||||
8.3% | 12.3% | |||||||||||||||
Q4 2023 ∆ Volumes ∆ Prices | ∆ Cost | ∆OPEX | FX | Q4 2024 |
Notes -
Numbers in million $;
11Denotes adjusted figures unless otherwise noted; Parts may not sum due to rounding;
Volumes include mix effect; FX includes currency effect on sales and costs and opex, net of hedging
FY 2024 Sales
Volumes stabilized, pricing pressures
Sales bridge analysis
4,661 | -20 | -369 |
-1314,141
8% | 11% | |||
FY 2023 | ∆ Volumes | ∆ Prices | FX | FY 2024 |
- Lower crop protection and active ingredient market prices mainly commodities
- Volume recovery in H2, while de-focusing from selected low-profit products
- AI overcapacity, just-in-time purchasing patterns
Notes - | |
Numbers in million $; | |
12 | Denotes adjusted figures unless otherwise noted; |
Parts may not sum due to rounding; | |
FX includes currency effect on sales, net of hedging. |
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