[三季报]安道麦B(200553):2024年第三季度报告（英文版）
Stock Code: 000553(200553) Stock Abbreviation: ADAMA A(B) Announcement No.2024-47 The Company and all members of its board of directors hereby confirm that all information disclosed herein is true, accurate and complete with no false or misleading statement or material omission. ADAMA LTD. THIRD QUARTER REPORT 2024 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 dozens of countries globally, with direct presence in all top 20 markets. Please see important additional information and further details included in the Annex. October 2024 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 (Chief Financial Officer), hereby assert and confirm the truthfulness, accuracy and completeness of the Financial Report. The Third Quarter Report has not been audited. 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 accounting and financial results 1. Whether the Company performs any retroactive adjustments to, or restatements of, its accounting data of last year due to change in accounting policies or correction of accounting errors □ Yes √ No
Explanation of other profit or loss that meets the definition of non-recurring profit or loss □ Applicable √ Not applicable No such cases in the Reporting Period. Explanation of why the Company classified an item as non-recurring profit/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering their Securities to the Public. Non-recurring Profit and Loss, and reclassified any non-recurring profit/loss items are given as examples in the said explanatory announcement to recurrent profit/loss □ Applicable √ Not applicable No such cases in the Reporting Period.
1 Sources: CCPIA (China Crop Protection Industry Association), BAIINFO, FocusEconomics, China Containerized Freight Index, internal sources. 2 For further information see Section 3 Subsection X to the 2024 Semi-Annual Report, "Raw material supply and/or shipping, port service
the Company’s performance is based on the USD results, following explanations and analysis are based on USD- denominated numbers as listed above. Analysis of Financial Highlights (1) Revenues Revenues in the third quarter declined by approximately 10% (-11% in RMB terms; -6% in CER terms) 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. High competition from
Note: the numbers in this table 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 negative weather conditions in Eastern, Central and Northen Europe, and strong competition across the region, which have impacted pricing. North America: Consumer & Professional Solutions - Sales were higher in the third quarter and nine-month period following supported by good weather, while the Company focused on higher margin products. In the US Ag market, sales increased in the third quarter supported by channel restocking against channel destocking in the corresponding quarter and decreased in the first nine months of 2024, following pricing pressure in light of competition and lower famer profitability, just-in-time purchasing patterns reflecting the high interest rate environment. ADAMA's sales in Canada in the third quarter were higher and reflected good demand for pre and post-harvest herbicides and fungicides, while the lower sales in the nine month period were impacted 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” famers behavior 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 new product 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 negative weather conditions which have impacted the seasons across the region, while pricing was impacted by high competition. Despite this, new product introductions of differentiated products supported sales. Asia-Pacific: In China, the branded formulations sales in the third quarter were impacted by lower customer demand due to high channel inventory, market competition and extreme weather events as typhoon in Southern China. The pricing pressure continued throughout the first nine months. The non-Ag business saw a stable demand and improved business quality despite the impact of lower prices. In the Pacific region, sales in the third quarter and the first nine months were lower, impacted by softer pricing and just- in-time purchasing patterns. Sales in the third quarter were supported by 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 by erratic weather and softer pricing, particularly in commoditized products. Sales in the wider APAC region continued to experience pricing pressure following intense competition from China, particularly in commoditized products, and low demand as customers focused on lowering stocks and tended to buy products as needed. (2) Cost of Goods and Gross Profit Despite the decline in sales in the third quarter and first nine months of 2024, the Company improved the gross margin both in the third quarter and nine-month period following the positive impact of new inventory sold, priced at market levels and following management's focus on the quality of business which led to an improvement in the sales mix of higher margin products, moderated by the negative impact of exchange rates. In the third quarter the Company also recorded a slight increase in quantities sold, which had a positive impact. (3) Operating Expenses: Operating expenses include Sales and Marketing, General and Administration and R&D. The Company recorded certain non-operational charges within its operating expenses amounting to RMB 167 million ($23 million) in Q3 2024 in comparison to RMB 49 million ($7 million) in Q3 2023, and RMB 639 million ($90 million) in 9M 2024 in comparison to RMB 153 million ($22 million) in 9M 2023, mainly as follows: (i) Provisions such as legal claims and update of registration depreciation; (ii) measures to improve efficiencies; (iii) non-cash amortization charges in respect of Transfer assets received and written-up related to the 2017 ChemChina-Syngenta acquisition. 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 and economic value. Since the products acquired from Syngenta are of the same nature, and with the same net economic value as those divested, the Divestment and Transfer transactions had no net impact on the underlying economic performance of the Company. These additional amortization charges will continue until 2032 but at a reducing rate, yet will still be at a meaningful level until 2028; (iv) charges 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 companies acquired. Excluding the impact of the abovementioned non-operational items, the operating expenses were lower in the third quarter and first nine months of 2024, following undertaking tight OPEX management measures, including the impact of initiatives included in the Company's transformation plan and the positive impact of 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 (before hedging) is an expense of RMB 1,220 million ($172 million) for the nine months of 2024 compared with an expense of RMB 687 million ($98 million) for the corresponding period in 2023. 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” amounted to a net loss of RMB 236 million ($33 million) in the first nine months of 2024, mainly due to hedging transactions, compared with a net loss of RMB 1,069 million ($153 million) in the corresponding period in 2023. 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, amounts to RMB 1,456 million ($205 million) in the nine months of 2024 compared with RMB 1,755 million ($251 million) in the corresponding period in 2023. In the nine-month period the financial expenses were lower also due to lower interest paid on loans in light of the positive cash flow achieved, better loan mix and improved efficiency of cash management as well as the net impact of a lower Israeli CPI on the ILS-denominated CPI-linked bonds. In the third quarter of 2024, the financial expenses were slightly higher due to higher hedging costs on exchange rates, the net impact of a higher Israeli CPI on the ILS-denominated CPI-linked bonds moderated by lower interest paid on loans following a decrease in loans in light of the positive cash flow achieved, better loan mix and improved efficiency of cash management. (5) Income Tax Expenses Despite reaching losses before tax, the Company recorded tax expenses in the third quarter and first nine months of the year 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 first nine months of 2024 the company recorded tax expenses due to the non-cash impact of the weakness 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 the stronger BRL compared with tax expenses due to the weakness of the BRL in the third quarter of 2023.
II. Information regarding the Shareholders 1. Total number of ordinary shareholders and preference shareholders who had resumed their voting rights, and shareholdings of top 10 shareholders at the period-end Unit: share
Shareholders holding more than 5% of shares, top ten shareholders and top ten shareholders with unlimited shares in circulation participating in the shares lending through refinancing arrangement □Applicable √ Not applicable Change of top ten shareholders and top ten shareholders with unlimited shares in circulation from the previous period due to the shares lending/returning through refinancing arrangement □ 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. 30 September 2024 Unit: RMB’000
Gael Hili Efrat Nagar Efrat Nagar Legal representative Chief of the accounting work Chief of the accounting organ 2. Consolidated income statement for the period from the year-beginning to the end of the Reporting Period Unit: RMB’000
Gael Hili Efrat Nagar Efrat Nagar Legal representative Chief of the accounting work Chief of the accounting organ 3. Consolidated cash flow statement for the period from the year-beginning to the end of the Reporting Period Unit: RMB’000
ii. Impact of initial application of new accounting standards on the opening balances of current year □ Applicable √ Not applicable iii. Auditor’s report Is this Report audited? □ Yes √ No This Report is unaudited. Board of Directors ADAMA Ltd. October 31, 2024 中财网
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