Click here to close now.




















Welcome!

Microsoft Cloud Authors: Eric Aarrestad, Greg O'Connor, Liz McMillan, Aleksei Gavrilenko, Elizabeth White

News Feed Item

Adama Business Momentum Continues in Second Quarter and First Half of 2014: Strong Growth in Revenues and Profits

Revenues up 9%, Net Income up 24% for the Quarter

TEL AVIV, Israel, Aug. 10, 2014 /PRNewswire/ -- ADAMA Agricultural Solutions Ltd. (formerly Makhteshim Agan Industries, "Adama" or "the Company"), a leading global provider of crop protection solutions, today reported its financial results for the second quarter and first six months ended June 30, 2014.

ADAMA Agricultural Solutions Ltd. Logo.

Financial Highlights  

In millions of
$USD


Q2
2014

Q2
2013

Change


H1
2014

H1
2013

Change

Revenues*


875.9

803.3

9.0 %


1,785.7

1,688.6

5.7 %

Gross profit


279.7

253.4

10.3%


592.7

548.2

8.1%

Gross margin


31.9%

31.5%

NA


33.2%

32.5%

NA

Operating profit


99.5

93.3

6.7%


230.2

224.4

2.6%

Net Income


59.4

48.1

23.5%


158.3

138.4

14.4%

EBITDA


141.2

132.6

6.5%


312.7

301.0

3.9%

* Excluding currency effects, revenues grew by 10.1% for the second quarter, and 6.9% for the first half of 2014

Commenting on the results, Mr. Yang Xingqiang, Adama's Chairman, said, "Adama continued to grow strongly in the second quarter, led by double digit sales growth in North America, Latin America, and Asia Pacific & Africa, generating continued momentum in our revenues and profits across all our key geographies.

"We continue to make important progress towards the establishment and integration of Adama's commercial and operational platform in China, which we believe will uniquely position Adama as a leading crop protection solutions provider."

Chen Lichtenstein, Adama's President and CEO, commented, "Our results during the first half of the year demonstrate the Company's continued growth in all key territories despite challenging weather conditions in North America and drought in Australia. Additionally, our market reach and comprehensive product portfolio, which spans across the entire value chain, allowed us to deliver strong performance in most markets.

During the quarter, we began rolling out our new brand globally; a process that will contribute to the strengthening of our commercial platform, which is focused on supporting local farmer needs with global expertise and quality solutions. Additionally, we have begun to implement a new organizational structure to focus on the implementation of our growth strategy alongside the continued advancement of our key strategic initiatives in China.

Financial Review

Revenues: Sales in the second quarter of 2014 increased by 9.0% to $875.9 million from $803.3 million in Q2 2013, reflecting an increase in quantities sold in all regions.

On a geographical basis, the revenue breakdown was as follows:

Breakdown of Sales By Geographical Region    
(millions of USD)




Q2 2014

Q2 2013

Change

H1 2014

H1 2013

Change

Europe

336.1

340.6

(1.3)%

803.4

776.6

3.4%








Latin America

169.6

139.8

21.3%

305.9

268.2

14.0%








North America

175.5

150.8

16.4%

313.9

296.6

5.8%








Asia Pacific
& Africa

165.2

144.2

14.5%

307.9

292.3

5.3%








Israel

29.5

27.9

5.7%

54.6

54.9

(0.5%)

Europe: During the second quarter, sales in Europe decreased slightly to $336.1 million from $340.6 million in Q2 2013, reflecting the short winter, which shifted the timing of some sales to the first quarter, followed by unseasonably cold and wet weather during the first half of the second quarter, which decreased demand during that period. However, over the half-year period, sales increased by 3.4% to $803.4 million from $776.6 million in H1 2013, reflecting an increase in sales volumes and the raising of selling prices. The strengthening of the Euro during the period was offset by currency hedging.

Latin America: During the second quarter, sales in Latin America rose 21.3% to $169.6 million from $139.8 million in Q2 2013, reflecting significant volume increases in Brazil and across the region, offset partially by a decrease in selling prices. Over the first half of the year, sales in Latin America increased by 14.0% to $305.9 million from $268.2 million in H1 2013.

North America: During the second quarter, sales in North America rose by 16.4% to $175.5 million from $150.8 million in Q2 2013. The increase reflected higher sales volumes that were achieved despite a number of challenges during the season, including adverse weather conditions, inventories accumulated in the distribution channels and the weakening of the Canadian dollar. Over the first half of the year, sales in North America increased by 5.8% to $313.9 million from $296.6 million in the first half of 2013, reflecting the factors described above.

Asia Pacific and Africa: During the second quarter, sales in Asia Pacific and Africa increased by 14.5% to $165.2 million from $144.2 million in Q2 2013, reflecting an increase in sales volumes, notably in India, despite drought conditions in a number of Asian countries. This was offset partially by the weakening of currencies in certain of the countries in the region. For the first half of the year, sales in the region increased by 5.3% to $307.9 million compared with $292.3 million for H1 2013, with the strong growth in quantities sold in the second quarter compensating for the decrease in quantities sold in the first quarter.

Israel: Sales in Israel during the second quarter increased by 5.7% to $29.5 million. Sales over the first half of 2014 decreased by 0.5% to $54.6 million.

Gross Profit
Gross profit for the second quarter increased by 10.3% to $279.7 million (31.9% of sales) from $253.4 million (31.5% of sales) in Q1 2013, reflecting an improved product mix that partially compensated for rising raw material prices and a lower effective exchange rate. For the first half of 2014, gross profit increased by 8.1% to $592.7 million (33.2% of sales) from $548.2 million (32.5% of sales) in H1 2013, reflecting the abovementioned factors.

Operating Profit and Operating Expenses
Operating profit for the second quarter rose by 6.7% to $99.5 million (11.4% of sales) from $93.3 million (11.6% of sales) in Q2 2013. Operating expenses in Q2 2014 increased by 12.5% to $180.2 million (20.6% of sales) from $160.1 million (19.9% of sales) in Q2 2013, partly as a result of expenses related to the launch of the company's new global brand.

For the first half of 2014, operating profit increased by 2.6% to $230.2 million (12.9% of sales) from $224.4 million (13.3% of sales) in the first half of 2013. Operating expenses in the period increased by 12.0% to $362.6 million (20.3% of sales) from $323.8 million (19.2% of sales) in the first half of 2013, reflecting an increase in marketing expenses to support the increase in sales, as well as expenses related to the global brand launch. General and administrative expenses remained largely flat over the reporting period.

Net Income
For the second quarter, net income rose by 23.5% to $59.4 million (6.8% of sales) from $48.1 million (6.0% of sales) in Q2 2013. For the first half of 2014, net income increased by 14.4% to $158.3 million (8.9% of sales) from $138.4 million (8.2% of sales) in the first half of 2013.

EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) for the second quarter increased by 6.5% to $141.2 million (16.1% of sales) from $132.6 million (16.5% of sales) in Q2 2013. For the half-year period, EBITDA increased by 3.9% to $312.7 million (17.5% of sales) from $301.0 million (17.8% of sales) in the first half of 2013.

Cash Flow
During the second quarter, the Company generated $161.7 million in cash flow from operating activities compared with $223.7 million in Q2 2013. For the first half of 2014, the Company generated negative cash flow from operating activities of $58.8 million compared with $67.0 positive cash flow in the first half of 2013. The lower cash flow generation in both the second quarter and the first half of the year reflects increased working capital requirements as a result of higher sales in regions characterized by relatively long credit terms, together with changes in the timing of sales during the reporting period.

Organizational Changes

During the second quarter, the Company announced a change in its organizational structure to best implement the Company's strategy. The changes become effective gradually over the course of the second half of the year and will be completed by January 2015.

The changes to be implemented include the division of the Company's sales regions into focused clusters, the addition of, amongst others, cluster managers to the management team, and the establishment of an executive committee from within management to oversee ongoing performance.

China Buildup and Integration

The Company continues to evaluate business opportunities in China with the potential to support the creation of a significant commercial, operational, and R&D infrastructure in the country, in a way that will contribute to the Company's presence in the Chinese market, strengthen its presence in the Asia-Pacific region and enhance its global capabilities.

Adama is proceeding in negotiations with majority shareholder China National Agrochemical Corporation (CNAC) regarding the acquisition of all or part of the shares or assets of several companies, which are directly and indirectly controlled by CNAC.

About ADAMA Agricultural Solutions
ADAMA Agricultural Solutions Ltd., formerly known as Makhteshim Agan Industries, is a leading global manufacturer and distributor of crop-protection solutions, and the leading off-patent provider.  The Company supplies efficient solutions to farmers across the full farming value-chain, including crop-protection products and services and complementary non-crop businesses.  In 2013, the Company's revenues were over $3 billion, and it is ranked seventh in the world in the overall crop protection industry. The Company is characterized by its innovation, farmer-centric approach to product development, and strict standards of environmental protection and quality control. For more information, visit us at www.adama.com.

Contact:
Anna Wood
Global Public Relations Manager
Email: [email protected] 
Phone: +972 73 232 1131

Logo - http://photos.prnewswire.com/prnh/20140402/679073

SOURCE ADAMA Agricultural Solutions Ltd.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect their organization.
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
Akana has released Envision, an enhanced API analytics platform that helps enterprises mine critical insights across their digital eco-systems, understand their customers and partners and offer value-added personalized services. “In today’s digital economy, data-driven insights are proving to be a key differentiator for businesses. Understanding the data that is being tunneled through their APIs and how it can be used to optimize their business and operations is of paramount importance,” said Alistair Farquharson, CTO of Akana.
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI Intelligence, he worked analyzing bank technology for Corporate Insight and The Clearing House Payment...
"Optimal Design is a technology integration and product development firm that specializes in connecting devices to the cloud," stated Joe Wascow, Co-Founder & CMO of Optimal Design, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. CommVault's exclusive single-platform architecture gives companies unp...
Electric Cloud and Arynga have announced a product integration partnership that will bring Continuous Delivery solutions to the automotive Internet-of-Things (IoT) market. The joint solution will help automotive manufacturers, OEMs and system integrators adopt DevOps automation and Continuous Delivery practices that reduce software build and release cycle times within the complex and specific parameters of embedded and IoT software systems.
"ciqada is a combined platform of hardware modules and server products that lets people take their existing devices or new devices and lets them be accessible over the Internet for their users," noted Geoff Engelstein of ciqada, a division of Mars International, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.