ADAMA Reports Fourth Quarter and Full Year 2024 Results

Strategic transformation plan launched in 2024, with preliminary success mirrored in sure key metrics together with improved free money circulate and adjusted monetary outcomes

BEIJING and TEL AVIV, Israel, March 13, 2025 /PRNewswire/ — ADAMA Ltd. (the “Firm”) (SZSE 000553), immediately reported its monetary outcomes for the fourth quarter and full yr ended December 31, 2024. 

Fourth Quarter 2024 Highlights:

• Gross sales down 2% (-2% in RMB; +2% in CER) to $1,113 million, primarily reflecting a rise of seven% in volumes greater than offset by a lower of 4% in costs and unfavourable international alternate impacts
• Adjusted gross revenue up 14% to $280 million, representing an enchancment of gross margin from 21.5% in This autumn 2023 to 25.2% in This autumn 2024, reflecting decrease prices and improved product combine
• Adjusted EBITDA up 45% to $137 million representing an enchancment of EBITDA margin from 8.3% in This autumn 2023 to 12.3% in This autumn 2024 
• Adjusted web loss narrowed 43% to $58 million from $101 million in This autumn 2023; Reported web lack of $149 million, together with one-time restructuring prices related to the Firm’s transformation plan, in comparison with $79 million in This autumn 2023
• Working money circulate reached $126 million in This autumn 2024 vs. $293 million in This autumn 2023
• Free money circulate reached $38 million in This autumn 2024 vs. $130 million in This autumn 2023

Full Yr 2024 Highlights:

• Gross sales down 11% to $4,141 million (-10% in RMB; -8% in CER), primarily reflecting 8% lower in costs and steady volumes
• Adjusted gross revenue reached $1,061 million (margin of 25.6%) from $1,060 million (margin of twenty-two.7%) within the full yr of 2023, reflecting decrease prices and improved product combine
• Adjusted EBITDA up 15% to $469 million, reflecting an enchancment of EBITDA margin from 8.7% in 2023 to 11.3% in 2024, demonstrating an enchancment in enterprise high quality
• Adjusted web loss narrowed by 13% to $206 million from $236 million within the full yr of 2023; Reported web loss of $407 million, together with one-time restructuring prices related to the corporate’s transformation plan, in comparison with $225 million in 2023.
• Enchancment of $172 million in working money circulate reaching $528 million in 2024 vs. $356 million in 2023
• Enchancment of $364 million in free money circulate reaching an influx of $217 million vs. an outflow of $147 million in 2023

Gaël Hili, President and CEO of ADAMA, mentioned, “In 2024 we launched our Combat Ahead strategic transformation plan. Our Combat Ahead plan contains bettering the best way we work to win within the worth innovation section the place the market is searching for high-quality options with a powerful return on funding. As a part of the plan, we’re streamlining our operations, specializing in merchandise and territories the place we are able to maximize worth for all stakeholders, and prioritizing assist for our international locations to ship worth to our channel companions and to end-customers. I am happy to report that we’re already seeing tangible outcomes, together with improved operational and free money circulate, and development of adjusted gross revenue and EBITDA and their margins vs. final yr. As properly, gross sales volumes within the second half of 2024 had been up in comparison with the earlier yr. I am optimistic Combat Ahead‘s early accomplishments present momentum in the direction of additional successes in 2025.”

Notes:

• “As Reported” denotes the Firm’s monetary statements based on the Accounting Requirements for Enterprise Enterprises and the implementation steering, interpretations and different related provisions issued or revised subsequently by the Chinese language Ministry of Finance (the “MoF) (collectively known as “ASBE”). Word that within the reported monetary statements, based on the ASBE pointers [IAS 37], sure gadgets (particularly sure transportation prices and sure idleness fees) are categorized beneath COGS. Please see the appendix to this launch for additional info.
• Related revenue assertion gadgets contained on this launch are additionally introduced on an “Adjusted” foundation, which exclude gadgets which are of a transitory or non-cash/non-operational nature that don’t impression the continued efficiency of the enterprise, and replicate the best way the Firm’s administration and the Board of Administrators view the efficiency of the Firm internally. The Firm believes that excluding the consequences of this stuff from its working outcomes permits administration and traders to successfully evaluate the true underlying monetary efficiency of its enterprise from interval to interval and in opposition to its world friends. An in depth abstract of those changes seems within the appendix under.
• The variety of shares used to calculate each fundamental and diluted earnings per share in each This autumn & FY  2024 and 2023 is 2,329.8 million shares.
• On this desk and all tables on this launch numbers might not sum because of rounding.

The Common Crop Safety (CP) Market Surroundings

Key commodity crop costs remained subdued in 2024, pressuring farmer revenue, regardless of some ease within the costs of inputs. World crop safety business gross sales are estimated to have declined in 2024^[1].

Whereas channel stock ranges proceed to ease following pandemic-era stockpiling, the high-interest price setting, coupled with ample product provide (pushed by important over-capacity manufacturing of energetic components (“AIs”) in China) contributing to low AI costs, proceed to drive a just-in-time buying method by the channel.

‘Combat Ahead’ Transformation Plan

In early 2024, ADAMA launched ‘Combat Ahead’, a strategic transformation plan aimed toward steadily delivering improved revenue and money targets over a three-year interval.

This plan has three principal pillars:

1.  Optimize monetary administration: With a deal with bettering the corporate’s monetary health in each the quick and long run by value discount, in addition to business and manufacturing excellence. Enhancements in sure key metrics, together with free money circulate and adjusted monetary leads to 2024 replicate the plan’s early impression.

2.  Streamline ADAMA’s working mannequin: Deal with key geographies and centralize world features to leverage experience with a view to allow the Firm’s business unit assets to primarily deal with buyer wants to maximise ROI for all stakeholders.

3.  Deal with the Worth Innovation section, the place worth is supplied through the use of off-patent AIs enhanced by proprietary formulation applied sciences which are designed to handle farmers’ wants and enhance their effectivity by delivering tangible advantages akin to rainfastness, improved leaf penetration, ease of use, in addition to enhancing ROI.

Sustainability 

In 2024, ADAMA remained dedicated to growing progressive formulations that improve each farmers’ productiveness and sustainability, whereas additionally advancing sustainable manufacturing practices.

Sustainability in Merchandise: 

• In 2024 ADAMA launched EDAPTIS^®, a novel formulation which not solely expands the spectrum of efficacy but additionally improves the effectiveness in combating resistant weed populations. As well as, the product is formulated as an oil dispersion utilizing refined rapeseed oil, a renewable useful resource, thus eliminating use of hydrocarbons present in standard oil dispersion formulations. 
• Feralla® a novel molluscicide energetic ingredient, achieved a key milestone with EFSA’s optimistic evaluation in the direction of EU approval. Its distinctive and patented formulation, powered by ADAMA’s Desidro^® Expertise, enhances pest palatability, whereas its low energetic ingredient focus helps farmers in reaching their sustainability objectives.

• ADAMA continued to develop the market presence of Sesgama™ based mostly merchandise. Sesgama™ is ADAMA’s proprietary formulation ‎expertise platform addressing high-load and in any other case difficult formulations enabling much less use of ‎co-formulants, transport and packaging supplies per acre handled with a ensuing ‎improved product sustainability profile.
• Throughout 2024, ADAMA continued to register and launch merchandise based mostly on its proprietary Asorbital^® formulation expertise platform that improves the leaf penetration and systemic motion of the AI within the plant. This expertise supplies larger efficacy and sustainability and can be utilized to scale back software charges.

Sustainability in manufacturing:

• Opening of the brand new energy-efficient chloralkali manufacturing facility – The superior expertise utilized within the facility permits ADAMA Makhteshim to provide chlorine as much as 40% extra effectively, lowering power consumption and making certain a safer, extra sustainable course of. The chloralkali plant makes use of cutting-edge membrane cell expertise, changing the corporate’s mercury-based system. This transition not solely eliminates the dangers related to mercury, but additionally considerably improves power effectivity.
• Installment of Regenerative Thermal Oxidizer (RTO) – In 2024, an RTO system was put in in ADAMA Agan’s wastewater therapy plant to successfully handle odor and pollutant emissions. This initiative goals to boost air high quality for each web site workers and neighboring communities. The system is scheduled to turn out to be operational within the second quarter of 2025.

Portfolio Improvement Replace

Throughout 2024 ADAMA continued to register and launch a number of new merchandise in markets throughout the globe, including on to its differentiated product portfolio. As a part of the Combat Ahead plan, the Firm is concentrated on bettering its total portfolio combine, notably by focusing on the Worth Innovation section, with the intent of bettering worth delivered to all stakeholders.

New Product Introductions (NPI) share out of the total yr gross sales of 2024 reached 22%, referring to merchandise launched over the previous 5 years.

A number of merchandise had been highlighted within the Firm’s earlier 2024 quarterly studies. In This autumn 2024, launches of differentiated merchandise included: 

• Forpido^® in India. A brand new GR-type progressive insecticide formulation. Combining Chlorantraniliprole, Fipronil, and Zinc, it successfully controls resistant rice stem borer whereas enhancing early crop institution, making certain more healthy rice cultivation. The formulation incorporates a patent-pending expertise that delivers a outstanding phytotonic impact, clearly evident within the area.
• Edaptis^® in Poland, Italy and Greece, with plans to develop throughout different European nations. This progressive post-emergence herbicide combines the actives Pinoxaden and Mesosulfuron-methyl, offering efficient management over a really broad spectrum of grasses, together with enhanced efficiency within the presence of resistant populations. Its superior formulation, protected by a patent, stabilizes this distinctive mixture making certain efficacy and reliability.
• Matos^® in South Korea as the primary nation, with enlargement plans focusing on further markets. This progressive SC insecticide formulation, powered by Spirotetramat, presents efficient management of sucking pests throughout numerous vegetables and fruit crops as Apples Cabbage Peppers and many others.   The formulation leverages the patent-pending Ayalon formulation expertise for enhanced efficacy.

• ADAMA continued to develop the Prothioconazol based mostly merchandise into new areas. Forapro^®, combining Prothioconazole with Fenpropidin, was launched in France and Malta; Maganic, that includes a mix with Difenoconazole, expanded to Italy. Each merchandise leverage ADAMA’s distinctive Asorbital^® Formulation Expertise, delivering enhanced uptake and distinctive systemic efficiency.
• Paramer, a pre-emergence WG herbicide that includes Pyroxasulfone, was launched in Argentina. Designed to manage grass and broadleaf weeds, efficient in key crops akin to wheat, soy, corn, and barley.

Registrations of differentiated merchandise throughout This autumn 2024 included:

• Cazado, a brand new progressive OD herbicide formulation, has been registered in Canada. Combining Pinoxaden and Thiencarbazone-methyl for a twin mode of motion, it presents wheat growers the primary in-crop resolution to successfully management wild oats and proactively fight grassy weed resistance.
• Expanded registrations of Prothioconazol based mostly merchandise, all powered by ADAMA’s proprietary Asorbital^® Formulation Expertise, into new areas, together with Soratel in Netherland and Romania, Maganic in Belgium, UK and France, Avastel in Greece, UK, Eire and Czech Republic, and Forapro in Germany, Spain and Romania.

• Gilboa™, an progressive proprietary fungicide, submitted to the Fungicide Resistance Motion Committee (FRAC) for classification as new mode of motion for cereals.

As well as, patents granted throughout This autumn 2024 included: 

• China: Approval was secured for a patent overlaying the formulation of Saflufenacil in a soluble liquid type.
• Australia: A patent was granted for the proprietary formulation of Quadrant^®.

Geopolitical State of affairs: No Materials Impression

ADAMA is headquartered and has three manufacturing websites in Israel. The regional tensions which escalated on October 7, 2023 have had no materials impression to-date on the Firm’s means to assist its markets or its consolidated monetary outcomes.

Monetary Highlights

Revenues within the fourth quarter declined by roughly 2% (-2% in RMB; +2% in CER) to $1,113 million, reflecting a rise of seven% in volumes greater than offset by a lower of 4% in costs and unfavourable international alternate impacts. Volumes had been up in contrast with This autumn 2023 pushed by demand restoration in lots of areas because of improved channel stock ranges, whereas the Firm has continued shifting away from chosen low revenue merchandise, marking the second consecutive quarter of quantity development. Nonetheless, the optimistic impacts had been greater than offset by decrease costs because of just-in-time buying patterns of the channel in mild of overcapacity and a better rate of interest ‎setting, and unfavourable international alternate impacts, primarily depreciation of the Brazilian Actual. 

These outcomes introduced the revenues within the full yr of 2024 to $4,141 million, a decline of roughly 11% (-10% in RMB; -8% in CER), reflecting a lower of 8% in costs attributable to causes said above and steady volumes.

Notes: 
CER: Fixed Trade Charges
Numbers might not sum because of rounding

Europe, Africa & Center East (EAME): Revenues in This autumn 2024 had been just like these of This autumn 2023, with a rise in volumes offset by an identical lower in pricing. All through 2024, pricing stress remained robust, however channel inventory ranges started to normalize after two years of excessive ranges.

North America

Client & Skilled Options: Fourth quarter and full yr 2024 gross sales grew in each sector of its market, and margins remained robust. Demand was fueled by a development in disposable revenue.

ADAMA’s US Ag market loved optimistic quantity development, solely partially offset by pricing pressures. Whereas channel stock ranges returned to post-pandemic regular, excessive rates of interest and decrease crop commodity costs proceed to lead to just-in-time buying patterns.

In Canada, the 2024 crop season had good rising situations, resulting in excessive utilization charges of herbicides and fungicides. Nonetheless, decrease insect stress resulted in a smaller insecticide market.

Latin America: In Brazil, ADAMA’s gross sales in FY and This autumn 2024 loved robust development in fungicides (e.g., ALMADA, BLINDADO TOV) and pesticides (e.g., MAGNUM), with a decline in non-selective herbicides. Nonetheless, pricing pressures and the weak foreign money negatively impacted efficiency. Within the remainder of LATAM, gross sales had been weaker in FY and This autumn 2024 as in comparison with FY and This autumn 2023, largely because of elevated competitors and just-in-time buying patterns.

Asia-Pacific (APAC): Gross sales in APAC, excluding China, continued to expertise pricing stress all through 2024, with gross sales declining in comparison with FY and This autumn 2023. Ample over provide of Chinese language generics contributed to the declines. Gross sales in 2024 had been additionally impacted by unpredictable climate in India. Nonetheless, pricing in some key markets akin to Australia appear to have stabilized. And new product registrations in India akin to Bazak^®, Forpido^® and the tender introduction of Upturn in This autumn had been properly obtained.

In China, the gross sales within the fourth quarter elevated primarily pushed by quantity development of the energetic ingredient (AI) enterprise and better pricing of the non-ag enterprise. The fourth quarter is an off season for branded formulations. The AI gross sales elevated pushed by demand restoration in lots of areas globally and enhanced administration of key prospects, whereas the non-ag gross sales had been affected by decrease gross sales partially offset by greater costs. Gross sales within the full yr nonetheless mirrored weak demand and costs. In response to the sluggish markets, the branded formulations enterprise proactively promoted differentiated and high-margin merchandise, and the non-ag enterprise adjusted gross sales of sure low-profit merchandise, each reaching enterprise high quality enchancment.

Reported gross revenue within the fourth quarter elevated 25% to $274 million (gross margin of 24.7%) in comparison with $220 million (gross margin of 19.4%) in the identical quarter final yr and reached $946 million (gross margin of twenty-two.9%) within the full yr in comparison with $968 million (gross margin of 20.8%) final yr.

Changes to reported outcomes: The adjusted gross revenue contains reclassification of stock impairment, taxes and surcharge and excludes sure transportation prices (categorized beneath working bills), in addition to a provision associated to the soil & water cleanup and remediation concerning the Firm’s ‎totally different websites, primarily in Israel.

Adjusted gross revenue within the fourth quarter elevated 14% to $280 million (gross margin of 25.2%) in comparison with $245 million (gross margin of 21.5%) in the identical quarter final yr and reached $1,061 million (gross margin of 25.6%) within the full yr in comparison with $1,060 million (gross margin of twenty-two.7%) final yr.

The Firm improved the gross margin within the fourth quarter and the total yr, primarily reflecting the optimistic impression of decrease prices of recent stock offered, and an improved gross sales combine in the direction of greater margin merchandise following administration’s deal with the standard of enterprise. The gross revenue elevated within the fourth quarter in comparison with This autumn 2023, additionally attributable to quantity development which began within the third quarter and acquired stronger within the fourth quarter. The optimistic impacts had been moderated by decrease costs and the unfavourable impression of alternate charges.

Working bills reported within the fourth quarter and full yr of 2024 had been $320 million (28.7% of gross sales) and $991 million (23.9% of gross sales), in comparison with $247 million (21.8% of gross sales) and $906 million (19.4% of gross sales) within the corresponding durations final yr, respectively.

Changes to reported outcomes: please consult with the reason concerning changes to the gross revenue in respect to sure transportation prices, taxes and surcharges and stock impairment.

The Firm recorded sure non-operational gadgets inside its reported working bills amounting to $118 million in This autumn 2024 compared to $49 million in This autumn 2023 and $230 in FY 2024 compared to $75 in FY 2023. These embrace primarily: i. non-cash amortization fees in respect of switch belongings obtained from Syngenta associated to the 2017 ChemChina-Syngenta acquisition; ii. non-cash amortization web fees associated to intangible belongings created as a part of the Buy Worth Allocation (PPA) on acquisitions, with no impression on the continued efficiency of the businesses acquired; iii. bills associated to authorized claims; iv. restructuring and advisory prices incurred as a part of the implementation of the Combat Ahead transformation plan; v. fastened asset impairment associated to enchancment of operational effectivity, as a part of the Combat Ahead plan; vi. registration impairment and ‎replace of registration depreciation. For additional particulars on these non-operational gadgets, please see the appendix to this launch.

Adjusted working bills within the fourth quarter and full yr had been $205 million (18.4% of gross sales) and $850 million (20.5% of gross sales), in comparison with $220 million (19.4% of gross sales) and $918 million (19.7% of gross sales) within the corresponding durations final yr, respectively.

The working bills had been decrease within the fourth quarter and full yr of 2024, following endeavor tight OPEX administration measures, together with initiatives included within the Firm’s transformation plan, decrease transportation and logistics prices and the ‎optimistic impression of alternate charges.

Working revenue reported within the fourth quarter reached a lack of $45 million (-4.1% of gross sales) in comparison with a lack of $27 million (-2.4% of gross sales) in the identical quarter final yr and amounted to a lack of $45 million (-1.1% of gross sales) within the full yr in comparison with an revenue of $62 million (1.3% of gross sales) final yr.

Adjusted working revenue within the fourth quarter elevated 208% to $75 million (6.7% of gross sales) from $24 million (2.1% of gross sales) in the identical quarter final yr, and elevated to $212 million (5.1% of gross sales) within the full yr from $141 million (3.0% of gross sales) in the identical interval final yr. The rise in working revenue in the course of the fourth quarter and for the total yr of 2024 was a mixed results of greater gross revenue and decrease working bills.

EBITDA reported within the fourth quarter elevated 36% to $117 million (10.5% of gross sales) from $86 million (7.5% of gross sales) in the identical quarter final yr, and reached $369 million (8.9% of gross sales) within the full yr in comparison with $400 million (8.6% of gross sales) final yr.

Adjusted EBITDA within the fourth quarter elevated 45% to $137 million (12.3% of gross sales) from $95 million (8.3% of gross sales) in the identical quarter final yr and elevated 15% to $469 million (11.3% of gross sales) within the full yr from $407 million (8.7% of gross sales) final yr.

Adjusted monetary bills amounted to $61 million within the fourth quarter and $285 million within the full yr, in comparison with $89 million and $348 million within the corresponding durations final yr, respectively.

In each the fourth quarter and the total yr of 2024, monetary bills had been decrease primarily because of (i) decrease web CPI impression;  (ii) decrease curiosity paid on loans following a lower in loans and improved effectivity of money administration in mild of the optimistic money circulate achieved and, for the total yr, higher mortgage combine; and (iii) decrease put choices bills associated to minority stake in subsidiaries.

Adjusted taxes on revenue within the fourth quarter amounted to an expense of $71 million and $133 million within the full yr, in comparison with $36 million and $30 million within the corresponding durations final yr.

‎Regardless of reaching losses earlier than tax, the Firm recorded tax bills within the fourth quarter and full yr of 2024 primarily ‎as a result of the losses had been primarily incurred by subsidiaries with comparatively decrease tax charges, whereas some ‎of them didn’t create deferred tax belongings on the losses. Alternatively, the subsidiaries that ‎generated revenue have a better tax price. ‎

Within the fourth quarter and full yr of 2024 the corporate recorded tax bills as a result of non-‎money impression of the weak point of the BRL in contrast with tax revenue because of stronger BRL within the fourth quarter and full yr of 2023. ‎

Internet loss reported within the fourth quarter was $149 million and $407 million within the full yr, in comparison with $79 million and $225 million within the corresponding durations final yr, respectively.

After reflecting the impression of the abovementioned extraordinary and non-operational fees, adjusted web loss within the fourth quarter was $58 million, and $206 million within the full yr, in comparison with $101 million, and $236 million within the corresponding durations final yr, respectively.

Commerce working capital as of December 31, 2024, was $2,111 million in comparison with $2,421 million as of December 31, 2023. The lower in working capital was primarily due to the decline within the stage of stock, together with that of completed items, from $1,848 million by finish of 2023 to $1,553 million as of finish of 2024. The decline of inventories resulted from continued implementation of selective procurement practices, which began in 2023. Because the Firm improved its payable phrases following implementation of initiatives as a part of the Firm’s transformation plan, commerce payables remained flat whereas procurement was strictly managed. The lower in receivables mirrored the intensive collections and the decrease gross sales.

Money Movement: Working money circulate of $126 million was generated within the fourth quarter and $528 million generated within the full yr of 2024, in comparison with $293 million and $356 million within the fourth quarter and full yr interval of 2023, respectively. The working money circulate was decrease within the fourth quarter primarily because of decrease gross sales and one-time authorized claims-related funds. Within the full yr, regardless of decrease gross sales, the working money circulate considerably improved as a result of firm sustaining strict procurement practices, intensive collections and an enchancment in provider phrases, reflecting implementation of initiatives taken as a part of the corporate’s transformation plan.

Internet money utilized in investing actions was $40 million within the fourth quarter and $162 million within the full yr of 2024, in comparison with $108 million and $339 million within the corresponding durations final yr, respectively. The decrease money utilized in investing actions within the fourth quarter and the total yr mirrored prioritization of investments in its manufacturing amenities and the choice to extend deal with merchandise in keeping with the optimization of the Firm’s portfolio. The distinction within the full yr additionally mirrored proceeds from the sale of an actual property asset within the third quarter of 2024 and the cost of the acquisition of AgriNova New Zealand within the first quarter of 2023.

Free money circulate of $38 million was generated within the fourth quarter and $217 million generated within the full yr of 2024 in comparison with $130 million generated within the fourth quarter and $147 million consumed within the corresponding durations in 2023, respectively, reflecting the aforementioned working and investing money circulate dynamics.

Notes:

• The gross sales break up by product class is supplied for comfort functions solely and isn’t consultant of the best way the Firm is managed or during which it makes its operational selections.
• Numbers might not sum because of rounding.

Additional Data

All filings of the Firm, along with a presentation of the important thing monetary highlights of the interval, could be accessed by the Firm web site at www.adama.com.

About ADAMA

ADAMA Ltd. is a worldwide chief in crop safety, offering sensible options to farmers internationally to fight weeds, bugs and illness. Our tradition empowers ADAMA’s individuals to actively hearken to farmers and ideate from the sector. ADAMA’s numerous portfolio of current energetic components, coupled with its main formulation capabilities and proprietary formulation expertise platforms, uniquely place the corporate to develop high-quality, progressive and sustainable merchandise, to handle the numerous challenges farmers and prospects face immediately. ADAMA serves prospects in dozens of nations globally, with direct presence in all high 20 markets. For extra info, go to us at www.ADAMA.com and comply with us on X at @ADAMAAgri.

Contact

Joshua Phillipson
World Investor Relations
E mail: ir@adama.com                              

Zhujun Wang
China Investor Relations
E mail: irchina@adama.com 

Abridged Adjusted Consolidated Monetary Statements

The next abridged consolidated monetary statements and notes have been ready as described in Word 1 on this appendix. Whereas ready based mostly on the rules of Chinese language Accounting Requirements (ASBE), they don’t include all the info which both ASBE or IFRS would require for an entire set of monetary statements, and ought to be learn along side the consolidated monetary statements of each ADAMA Ltd. and Adama Agricultural Options Ltd. as filed with the Shenzhen and Tel Aviv Inventory Exchanges, respectively.

Related revenue assertion gadgets contained on this launch are additionally introduced on an “Adjusted” foundation, which exclude gadgets which are of a one-time or non-cash/non-operational nature that don’t impression the continued efficiency of the enterprise, and replicate the best way the Firm’s administration and the Board of Administrators view the efficiency of the Firm internally. The Firm believes that excluding the consequences of this stuff from its working outcomes permits administration and traders to successfully evaluate the true underlying monetary efficiency of its enterprise from interval to interval and in opposition to its world friends.

Notes to Abridged Consolidated Monetary Statements

Word 1: Foundation of preparation

Foundation of presentation and accounting insurance policies: The abridged consolidated monetary statements for the quarters ended December 31, 2024 and 2023 incorporate the monetary statements of ADAMA Ltd. and of all of its subsidiaries (the “Firm”), together with Adama Agricultural Options Ltd. (“Options”) and its subsidiaries.

The Firm has adopted the Accounting Requirements for Enterprise Enterprises (ASBE) issued by the Ministry of Finance (the “MoF”) and the implementation steering, interpretations and different related provisions issued or revised subsequently by the MoF (collectively known as “ASBE”).

The abridged consolidated monetary statements contained on this launch are introduced in each Chinese language Renminbi (RMB), because the Firm’s shares are traded on the Shenzhen Inventory Trade, in addition to in United States {dollars} ($) as that is the most important foreign money during which the Firm’s enterprise is carried out. For the needs of this launch, a customary comfort translation has been used for the interpretation from RMB to US {dollars}, with Revenue Assertion and Money Movement gadgets being translated utilizing the quarterly common alternate price, and Steadiness Sheet gadgets being translated utilizing the alternate price on the finish of the interval.

The preparation of monetary statements requires administration to make estimates and assumptions that have an effect on the reported quantities of belongings and liabilities and disclosure of contingent belongings and liabilities on the date of the monetary statements, and the reported quantities of revenues and bills in the course of the reporting interval. Precise outcomes might differ from these estimated.

Word 2: Abridged Monetary Statements

For ease of use, the monetary statements proven on this launch have been abridged as follows:

Abridged Consolidated Revenue Assertion:

• “Gross revenue” on this launch is income much less prices of products offered, taxes and surcharges, stock impairment and different idleness fees (along with these already included in prices of products offered); a part of the idleness fees is eliminated within the Adjusted monetary statements
• “Different working bills” contains impairment losses (not together with stock impairment); acquire (loss) from disposal of belongings and non-operating revenue and bills
• “Working bills” on this launch differ from these within the formally reported monetary statements in that sure transportation prices have been reclassified from COGS to Working Bills.
• “Monetary bills” contains web financing bills and positive aspects/losses from modifications in truthful worth.

Abridged Consolidated Steadiness Sheet:

• “Different present belongings, receivables and pay as you go bills” contains monetary belongings held for buying and selling; monetary belongings in respect of derivatives; prepayments; different receivables; and different present belongings
• “Fastened belongings, web” contains fastened belongings and development in progress
• “Intangible belongings, web” contains intangible belongings and goodwill
• “Different non-current belongings” contains different fairness investments; long-term fairness investments; long-term receivables; funding property; and different non-current belongings
• “Loans and credit score from banks and different lenders” contains short-term loans and non-current liabilities due inside one yr
• “Different present liabilities” contains monetary liabilities in respect of derivatives; payables for worker advantages, taxes, curiosity, dividends and others; advances from prospects and different present liabilities
• “Different long-term liabilities” contains long-term payables, provisions, deferred revenue and different non-current liabilities

Notes:

1.  Amortization of acquisition-related PPA and different acquisition associated prices:

a.  Amortization of Legacy PPA of 2011 acquisition of Options (non-cash): Below ASBE, because the third mixed reporting for Q3 2017, the Firm has inherited the historic “legacy” amortization cost that ChemChina beforehand was incurring in respect of its acquisition of Options in 2011. This amortization is finished in a linear method on a quarterly foundation, most of which may have been accomplished by the tip of 2020.

b.  Amortization of acquisition-related PPA (non-cash) and different acquisition-related prices: Associated primarily to the non-cash amortization of intangible belongings created as a part of the Buy Worth Allocation (PPA) on acquisitions, with no impression on the continued efficiency of the businesses acquired, in addition to different M&A-related prices.

2.  Amortization of Switch belongings obtained and written-up because of 2017 ChemChina-Syngenta transaction (non-cash): The proceeds from the Divestment of crop safety merchandise in reference to the approval by the EU Fee of the acquisition of Syngenta by ChemChina, web of taxes and transaction bills, had been paid to Syngenta in return for the switch of a portfolio of merchandise in Europe of comparable nature and financial worth. For the reason that merchandise acquired from Syngenta are of the identical nature and with the identical web financial worth as these divested, and since in 2018 the Firm adjusted for the one-time acquire that it made on the divested merchandise, the extra amortization cost incurred as a result of written-up worth of the acquired belongings can also be adjusted to current a constant view of Divestment and Switch transactions, which had no web impression on the underlying financial efficiency of the Firm. These further amortization fees will proceed till 2032 however at a lowering price, but will nonetheless be at a significant stage till 2028.

3.  Accelerated depreciation: These fees relate to accelerated depreciation attributed to the improve & relocation applications in China and Israel, during which manufacturing belongings positioned within the outdated manufacturing websites in Huai’An and Beer-Sheva are in relocation course of to new websites. Since some older manufacturing belongings might not have the ability to be relocated, or should not operational, these are depreciated over a shorter interval.

4.  Incentive plans: ADAMA granted sure of its workers, a long-term incentive (LTI) within the type of ‘phantom’ awards linked to the Firm’s share worth. As such, the Firm data an expense, or acknowledges revenue, relying on the fluctuation within the Firm’s share worth, no matter award workout routines. To neutralize the impression of such share worth actions on the measurement of the Firm’s efficiency and anticipated worker compensation and to replicate the prevailing phantom awards, within the Firm’s adjusted monetary efficiency, the LTI is introduced on an equity-settled foundation in accordance with the worth of the prevailing plan on the grant date.

5.  & 6. ASBEs classifications COGS impression: based on the ASBE pointers [IAS 37], sure gadgets (particularly sure transportation prices) are categorized beneath COGS.

7.  ‎Restructuring and advisory prices: The Firm initiated its Combat Ahead transformation plan in early 2024. A part of the plan contains restructuring its organizational construction, workforce and managerial processes, and because of this thereof, the Firm recorded restructuring and advisory prices.  

8.  Fastened belongings impairment: As a part of the Firm’s strategic path to boost operational effectivity, the Firm determined to deal with high-performing amenities. Consequently, after evaluating their web ebook worth and recoverable quantity, the Firm recorded impairments associated to sure amenities. In 2023, the impairment was recorded for a subsidiary’s amenities because of modifications within the markets and improve in expertise.

9.  Soil and water cleanup and remediation: a wholly-owned oblique subsidiary of the Firm ‎filed with Israel’s Ministry of Environmental Safety a remediation plan concerning ‎its plant in Be’er Sheva in Q2 2024. Throughout Q3 and This autumn 2024 further bills had been recorded concerning the Firm’s websites in Israel and Brazil.  

10.  ‎Expenses associated to authorized claims: Authorized claims associated to product liabilities was settled in 2024 and incurred bills.

11.  Registration impairment and ‎replace of registration depreciation: That is primarily associated to the administration’s strategic determination to extend deal with merchandise in keeping with the optimization of the Firm’s portfolio, and therefore to deal with the standard of enterprise to attain a greater gross sales combine of upper margin merchandise.

12.  Non-cash, non-recurring revenue because of revaluation of put choices attributed to minority stake in subsidiaries in each 2024 and 2023 and launch of holdback associated to the unique acquisition in 2023.

13.  Different financing bills: Bills primarily deriving from tax claims surcharges and inflation.

Trade Charge Information for the Firm’s Principal Useful Currencies

Ahead wanting assertion:

This press launch printed by ADAMA Ltd. or ADAMA Agricultural Options Ltd. (collectively the “Firm”) is for advertising and data functions solely, and incorporates forward-looking statements that are based mostly on Firm’s administration’s beliefs and assumptions and on info presently out there to the Firm’s administration. By this press launch, the Firm doesn’t intend to present, and the press launch doesn’t represent, skilled or enterprise recommendation or a proposal or suggestion to carry out any transaction within the Firm’s securities. The accuracy, completeness and/or adequacy of the content material of this press launch, in addition to any estimation and/or evaluation included on this press launch, if in any respect, will not be warranted or assured and the Firm disclaims any intention and/or obligation to adjust to such content material. The Firm shall not be answerable for any loss, declare, legal responsibility or injury of any sort ensuing out of your reliance on, or reference to, any element, truth or opinion introduced herein. The Firm’s assessments are based mostly on the data out there to the Firm as of the date hereof, and is probably not realized or be realized in a special method than the Firm estimates, inter alia, because of components out of the Firm’s management, together with the danger components listed within the Firm’s annual studies and modifications within the business or potential operations of the Firm’s rivals. Any content material contained herein shall not represent or be construed as any regulatory, valuation, authorized, tax, accounting and funding recommendation or any recommendation of any sort or any a part of it, nor shall they represent or be construed as any suggestion, solicitation, supply or dedication (or any a part of it) to purchase, promote, subscribe for or underwrite any securities, present any credit score or insurance coverage or have interaction in any transactions. Earlier than getting into into any transactions, you shall be certain that you absolutely perceive the potential dangers and returns of such transactions. Earlier than making such selections, you shall seek the advice of the advisors you suppose obligatory, together with your accountant, funding advisor and authorized and tax specialists. The Firm and its associates, controlling individuals, administrators, officers, companions, workers, brokers, representatives or their advisors shall not assume any duties of any sort (together with negligence or others) for the usage of and reliance on such info by you or any particular person to whom such info are supplied.

^{[1] Sources: AgbioInvestor Market Perception – Crop Safety and Seed Markets 2024 (February 2025); AgbioInvestor, Crop Safety and Traded Seed Market 2028 Forecast; CCPIA (China Crop Safety Trade Affiliation)‎, peer quarterly monetary studies, inside sources}

^{[2] For an evaluation of the variations between the adjusted revenue assertion gadgets and the revenue assertion gadgets as reported within the monetary statements, see under “Evaluation of Gaps between Adjusted Revenue Assertion and Revenue Assertion in Monetary Statements”.}

^{[3] The variety of shares used to calculate each fundamental and diluted earnings per share in each This autumn 2024 and 2023 is 2,329.8 million shares.}

^{[4] For an evaluation of the variations between the adjusted revenue assertion gadgets and the revenue assertion gadgets as reported within the monetary statements, see under “Evaluation of Gaps between Adjusted Revenue Assertion and Revenue Assertion in Monetary Statements”.}

^{[5] The variety of shares used to calculate each fundamental and diluted earnings per share in FY 2024 and 2023 is 2,329.8 million shares.}

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SOURCE ADAMA Ltd.