Beijing, China and Tel Aviv, Israel
August 28, 2024

• Q2 2024 Adjusted EBITDA 7% above Q2 2023; Improvement in gross margin and adjusted EBITDA margin in Q2 & H1 2024 following strict inventory management allowing the Company to benefit from market costs, positive product sales mix and continued OPEX management measures;
• Significant improvement in cash flow despite challenging market conditions; Positive operating cash flow of $243 million achieved in H1 2024 in comparison to a negative cash flow of $19 million in H1 2023; Positive free cash flow of $51m achieved in H1 2024 in comparison to a negative cash flow of $254m in H1 2023;
• Implementation of transformation plan underway, showing initial benefits as challenging market conditions continue.

Second Quarter 2024 Highlights:

• Sales down 16% to $1,041 million (-14% in RMB terms; -14% in CER1 terms), mainly reflecting a 10% decrease in prices and a 4% decrease in volumes
• Gross profit amounted to $269m (margin of 25.8%) vs $277m (margin of 22.5%) in Q2 2023 
• Adjusted EBITDA amounted to $120 million (margin of 11.5%) vs. $112 million (margin of 9.1%) in Q2 2023
• Adjusted net loss of $61 million; Reported net loss of $94 million
• Operating cash flow of $347million in Q2 2024 vs $405 million in Q2 2023
• Free cash flow of $245 million in Q2 2024 vs $288 million in Q2 2023

First Half Year 2024 Highlights:

• Sales down 16% to $2,098 million (-14% in RMB terms; -14% in CER2 terms), mainly reflecting a 10% decrease in prices and a 4% decrease in volumes
• Gross profit amounted to $557m (margin of 26.5%) vs $617m (margin of 24.8%) in H1 2023
• Adjusted EBITDA amounted to $252 million (margin of 12.0%) vs. $277 million (margin of 11.1%) in H1 2023
• Adjusted net loss of $71 million; Reported net loss of $126 million
• Improvement of $262 million in operating cash flow; $243 million in H1 2024 vs -$19 million in H1 2023
• Improvement of $305 million in free cash flow; $51 million in H1 2024 vs -$254 million in H1 2023

Q2 + H1 2024 Press Release English PDF Format (opens in new window)

Q2 + H1 2024 Press Release Hebrew PDF Format (opens in new window)

Q2 + H1 2024 Financial Presentation

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

Published: August 29, 2024