home news forum careers events suppliers solutions markets expos directories catalogs resources advertise contacts
 
News Page

The news
and
beyond the news
Index of news sources
All Africa Asia/Pacific Europe Latin America Middle East North America
  Topics
  Species
Archives
News archive 1997-2008
 

Adama provides net income estimate for Q1 2021 - Robust business growth expected to drive higher reported net profit 


Tel Aviv, Israel and Beijing, China
April 14, 2021

ADAMA Ltd. (the “Company”) (SZSE 000553), today provided an estimate regarding its financial performance for the first quarter of 2021.

Sales
ADAMA is expecting to report record-high first quarter sales, with estimated top-line growth of more than 13% (6% in RMB terms), driven by continued robust volume growth in almost all key regions.

The Company is expecting to record strong growth in Asia Pacific, both in China and beyond. In China, ADAMA saw significant growth in the quarter both from its branded, formulated portfolio, which was driven by higher cereal demand due to an increase in field crop planted areas and an early start to the Q2 season, as well as from its sales of raw materials and intermediates. Sales in the country were further bolstered by the inclusion of the Company’s recent acquisition of Jiangsu Huifeng’s domestic commercial crop protection business.

In the rest of APAC, the Company benefited from favorable seasonal conditions to deliver strong growth, despite a slower recovery from COVID-19 challenges in Asia.

Continued positive weather conditions also supported robust growth in the India, Middle-East & Africa region.

In North America, a strong performance from the Company’s Consumer and Professional business drove growth in the region, benefiting from the reopening of the economy after COVID-19 related restrictions in 2020, and more than offset a somewhat softer performance in the US crop protection business.

The Company continues its growth trajectory in Latin America, driven by solid volume growth and good performance from recent product launches in the region, and despite somewhat lower sales in Brazil following a strong end to the fourth quarter there last year.

Sales in Europe are expected to be somewhat lower in the quarter, with growth in the south, where favorable market conditions drove good demand, being outweighed by a slow start to the season in the north and east, especially when compared to Q1 2020 which saw strong orders from distribution in anticipation of the COVID-related shutdowns that soon followed.

Net Income

Reported Net Income in the quarter is expected to be significantly improved against the loss recorded in the corresponding period last year. This improvement is driven by the strong sales growth, resulting in higher reported operating income, and is expected to be achieved despite somewhat higher financial expenses expected in the quarter.

Reported Net Income

 

Estimated Q1 2021

 

Q1 2020

Net income attributable to shareholders (USD millions)

 

22 – 32

 

-2

Earnings per share (USD)

 

0.0094 – 0.0137

 

-0.0010

Net income attributable to shareholders (RMB millions)

 

143 – 207

 

-17

Earnings per share (RMB)

 

0.0612 – 0.0890

 

-0.0068

 

 

 

 

 

The Company’s Reported Net Income in the first quarter of 2021 is expected to reflect around $32 million (Q1 2020: $44 million) of net expenses in respect of certain non-operational, mostly non-cash items, including mainly:

  1. Approximately $15 million in Q1 2021 (Q1 2020: $15 million) of Relocation & Upgrade-related costs, including mainly (a) higher procurement costs incurred as the Company continued to fulfill demand for its products in order to protect its market position, through replacement sourcing at significantly higher costs from third-party suppliers; and (b) idleness charges largely related to suspensions at the facilities being relocated;
  2. Approximately $8 million in Q1 2021 (Q1 2020: $8 million) in non-cash amortization charges in respect of Transfer assets received from Syngenta related to the 2017 ChemChina-Syngenta acquisition;
  3. Approximately $3 million in Q1 2021 (Q1 2020: $2 million) in 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, as well as other M&A-related costs.

Excluding the impact of the abovementioned non-operational, mostly non-cash items, the Company is expecting to deliver the following Adjusted Net Income:
 

Adjusted Net Income

 

Estimated Q1 2021

 

Q1 2020

Net income attributable to shareholders (USD millions)

 

54 – 64

 

41

Earnings per share (USD)

 

0.0231 – 0.0274

 

0.0170

Net income attributable to shareholders (RMB millions)

 

349 – 414

 

289

Earnings per share (RMB)

 

0.1499 – 0.1777

 

0.1182

 

 

 

 

 

Note: The Q1 2020 Adjusted Net Income shown above has been amended from that presented at the time to include additional adjustments in order to consistently reflect largely the treatment of Relocation & Upgrade Program-related costs amongst other adjustments that the Company has deemed non-operational and one-time in nature.

These estimations are preliminary and have not been audited or reviewed by the Company's auditors. These estimations may change, inter alia, as a result of the further processing and analysis of the financial data that the Company will perform for the preparation of its financial statements which will be released on April 28, 2021.

Investors are reminded to exercise caution when making investment decisions.

 



More news from: Adama


Website: http://www.adama.com/en/

Published: April 15, 2021

The news item on this page is copyright by the organization where it originated
Fair use notice

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Archive of the news section


Copyright @ 1992-2024 SeedQuest - All rights reserved