2024-04-25-深交所-安道麦B_2024年第一季度报告（英文版）_14页_552kb

Summary of ADAMA Ltd. First Quarter 2024 Report

Company Overview:
ADAMA Ltd. is a global leader in crop protection, providing solutions to farmers worldwide. It has a diverse portfolio of active ingredients, advanced R&D, and manufacturing facilities, focusing on meeting local farmer needs in over 100 countries.

Financial Performance:

• Revenue: Decreased by 12.79% in RMB and 16.00% in USD for the quarter compared to the same period in 2023, reflecting lower prices and volumes. This decline is attributed to pricing pressure, high competition, and "wait and see" market approaches in commoditized products.
• Net Profit: Significantly dropped by 373.32% to (-227,605) RMB'000, compared to 83,273 RMB'000 in 2023.
• Net Profit Excluding Non-Recurring Items: Further declined by 658.42% to (-250,690) RMB'000.
• Cash Flow: Operating cash flow was negative at (-735,162) RMB'000, while net assets attributable to shareholders slightly decreased by 1.19%.

Market Analysis:

• Quarterly Performance: Sales declined across all regions: Europe, Africa & Middle East (-14.5%), North America (-9.4%), Latin America (-18.1%), and Asia Pacific (-20.0%). Reasons include channel destocking, erratic weather, and high interest rates driving just-in-time purchasing.
• Global Factors: The war in Israel did not materially impact operations, but shipping disruptions increased costs in some routes, though ADAMA mitigated effects through early material ordering.

Key Non-Recurring Items:

• The company reported a net non-recurring profit of 23,085 RMB'000, primarily from asset disposals and government grants, none classified as recurring.

Additional Notes:

• The report is unaudited and addresses consolidated financial statements, with detailed breakdowns provided.
• Shareholder information confirms major holding by entities like Syngenta Group Co., Ltd.

Overall, ADAMA faced challenges from market dynamics, leading to substantial financial declines, with focus on maintaining quality business amid competitive pressures.