Strategic transformation plan introduced in 2024, with preliminary luck mirrored in sure key metrics together with advanced separate coins tide and altered monetary effects

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

Fourth Quarter 2024 Highlights:

• Gross sales indisposed 2% (-2% in RMB; +2% in CER) to $1,113 million, basically reflecting an build up of seven% in volumes greater than offset via a trim of four% in costs and unfavorable foreign currencies affects
• Adjusted improper cash in up 14% to $280 million, representing an development of improper margin from 21.5% in This autumn 2023 to twenty-five.2% in This autumn 2024, reflecting decrease prices and advanced product combine
• Adjusted EBITDA up 45% to $137 million representing an development of EBITDA margin from 8.3% in This autumn 2023 to twelve.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 Corporate’s transformation plan, in comparison to $79 million in This autumn 2023
• Running coins tide reached $126 million in This autumn 2024 vs. $293 million in This autumn 2023
• Separate coins tide reached $38 million in This autumn 2024 vs. $130 million in This autumn 2023

Complete Life 2024 Highlights:

• Gross sales indisposed 11% to $4,141 million (-10% in RMB; -8% in CER), basically reflecting 8% trim in costs and solid volumes
• Adjusted improper cash in reached $1,061 million (margin of 25.6%) from $1,060 million (margin of twenty-two.7%) within the complete yr of 2023, reflecting decrease prices and advanced product combine
• Adjusted EBITDA up 15% to $469 million, reflecting an development of EBITDA margin from 8.7% in 2023 to 11.3% in 2024, demonstrating an development in industry property
• Adjusted web loss narrowed via 13% to $206 million from $236 million within the complete yr of 2023; Reported web loss of $407 million, together with one-time restructuring prices related to the corporate’s transformation plan, in comparison to $225 million in 2023.
• Development of $172 million in working coins tide attaining $528 million in 2024 vs. $356 million in 2023
• Development of $364 million in separate coins tide attaining 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 Fight Forward strategic transformation plan. Our Fight Forward plan includes improving the way we work to win in the value innovation segment where the market is looking for high-quality solutions with a strong return on investment. As part of the plan, we are streamlining our operations, focusing on products and territories where we can maximize value for all stakeholders, and prioritizing support for our countries to deliver value to our channel partners and to end-customers. I’m pleased to report that we’re already seeing tangible results, including improved operational and free cash flow, and growth of adjusted gross profit and EBITDA and their margins vs. last year. As well, sales volumes in the second half of 2024 were up compared to the previous year. I’m optimistic Fight Forward‘s early accomplishments provide momentum towards further successes in 2025.”

Notes:

• “As Reported” denotes the Corporate’s monetary statements in keeping with the Accounting Requirements for Trade Enterprises and the implementation steering, interpretations and alternative related provisions issued or revised therefore via the Chinese language Ministry of Finance (the “MoF) (collectively referred to as “ASBE”). Notice that within the reported monetary statements, in keeping with the ASBE pointers [IAS 37], sure pieces (in particular sure transportation prices and likely refreshment fees) are labeled below COGS. Refer to the appendix to this loose for additional data.
• Related source of revenue remark pieces contained on this loose also are introduced on an “Adjusted” foundation, which exclude pieces which might be of a transitory or non-cash/non-operational nature that don’t have an effect on the continuing efficiency of the industry, and mirror the best way the Corporate’s control and the Board of Administrators view the efficiency of the Corporate internally. The Corporate believes that except the consequences of this stuff from its working effects permits control and buyers to successfully examine the actual underlying monetary efficiency of its industry from length to length and in opposition to its international friends. An in depth abstract of those changes seems within the appendix under.
• The collection of stocks old to calculate each unsophisticated and diluted profits consistent with percentage in each This autumn & FY  2024 and 2023 is two,329.8 million stocks.
• On this desk and all tables on this loose numbers would possibly not sum because of rounding.

The Basic Reduction Coverage (CP) Marketplace Condition

Key commodity reduction costs remained subdued in 2024, pressuring farmer source of revenue, regardless of some diversion within the costs of inputs. International reduction coverage business gross sales are estimated to have declined in 2024^[1].

Hour channel stock ranges proceed to diversion following pandemic-era stockpiling, the high-interest price state, coupled with adequate product provide (pushed via vital over-capacity manufacturing of lively substances (“AIs”) in China) contributing to low AI costs, proceed to force a just-in-time buying way via the channel.

‘Struggle Ahead’ Transformation Plan

In early 2024, ADAMA introduced ‘Struggle Ahead’, a strategic transformation plan geared toward progressively turning in advanced cash in and coins objectives over a three-year length.

This plan has 3 primary pillars:

1.  Optimize monetary control: With a focal point on bettering the corporate’s monetary condition in each the brief and longer term thru value aid, in addition to business and production excellence. Enhancements in sure key metrics, together with separate coins tide and altered monetary ends up in 2024 mirror the plan’s early have an effect on.

2.  Streamline ADAMA’s working type: Focal point on key geographies and centralize international purposes to leverage experience to bring to permit the Corporate’s business unit assets to basically focal point on buyer wishes to maximise ROI for all stakeholders.

3.  Focal point at the Worth Innovation department, the place price is equipped via the usage of off-patent AIs enhanced via proprietary formula applied sciences which might be designed to deal with farmers’ wishes and fortify their potency via turning in tangible advantages akin to rainfastness, advanced leaf penetration, diversion of virtue, in addition to bettering ROI.

Sustainability 

In 2024, ADAMA remained dedicated to growing cutting edge formulations that reinforce each farmers’ productiveness and sustainability, future additionally advancing sustainable production practices.

Sustainability in Merchandise: 

• In 2024 ADAMA introduced EDAPTIS^®, a singular formula which no longer handiest expands the spectrum of efficacy but in addition improves the effectiveness in preventing reluctant weed populations. As well as, the product is formulated as an oil dispersion the usage of delicate rapeseed oil, a renewable useful resource, thus getting rid of virtue of hydrocarbons present in standard oil dispersion formulations. 
• Feralla® a book molluscicide lively factor, accomplished a key milestone with EFSA’s sure evaluate against EU esteem. Its distinctive and patented formula, powered via ADAMA’s Desidro^® Generation, complements pest palatability, future its low lively factor focus helps farmers achieve their sustainability objectives.

• ADAMA endured to develop the marketplace presence of Sesgama™ founded merchandise. Sesgama™ is ADAMA’s proprietary formula ‎generation platform addressing high-load and another way difficult formulations enabling much less virtue of ‎co-formulants, delivery and packaging fabrics consistent with acre handled with a ensuing ‎advanced product sustainability profile.
• Right through 2024, ADAMA endured to sign up and starting merchandise in response to its proprietary Asorbital^® formula generation platform that improves the leaf penetration and systemic motion of the AI within the plant. This generation supplies better efficacy and sustainability and may also be old to shed software charges.

Sustainability in production:

• Opening of the fresh energy-efficient chloralkali manufacturing facility – The complex generation applied within the facility permits ADAMA Makhteshim to form chlorine as much as 40% extra successfully, decreasing calories intake and making sure a more secure, extra sustainable procedure. The chloralkali plant makes use of state of the art membrane cellular generation, changing the corporate’s mercury-based gadget. This transition no longer handiest gets rid of the dangers related to mercury, but in addition considerably improves calories potency.
• Installment of Regenerative Thermal Oxidizer (RTO) – In 2024, an RTO gadget was once put in in ADAMA Agan’s wastewater remedy plant to successfully top smell and pollutant emissions. This initiative goals to reinforce wind property for each website online workers and neighboring communities. The gadget is scheduled to turn into operational in the second one quarter of 2025.

Portfolio Construction Replace

Right through 2024 ADAMA endured to sign up and starting more than one fresh merchandise in markets around the globe, including directly to its differentiated product portfolio. As a part of the Struggle Ahead plan, the Corporate is curious about bettering its total portfolio combine, in particular via focused on the Worth Innovation department, with the intent of bettering price dropped at all stakeholders.

Fresh Product Introductions (NPI) share out of the total yr gross sales of 2024 reached 22%, regarding merchandise introduced over the age 5 years.

A number of merchandise have been highlighted within the Corporate’s earlier 2024 quarterly experiences. In This autumn 2024, launches of differentiated merchandise integrated: 

• Forpido^® in Republic of India. A fresh GR-type cutting edge insecticide formula. Combining Chlorantraniliprole, Fipronil, and Zinc, it successfully controls reluctant rice stem borer future bettering early reduction established order, making sure fitter rice cultivation. The formula comprises a patent-pending generation that delivers a important phytotonic impact, obviously observable within the farmland.
• Edaptis^® in Poland, Italy and Greece, with plans to extend throughout alternative Eu international locations. This cutting edge post-emergence herbicide combines the actives Pinoxaden and Mesosulfuron-methyl, offering efficient regulate over an overly vast spectrum of grasses, together with enhanced efficiency within the presence of reluctant populations. Its complex formula, safe via a patent, stabilizes this distinctive aggregate making sure efficacy and reliability.
• Matos^® in South Korea as the primary nation, with enlargement plans focused on backup markets. This cutting edge SC insecticide formula, powered via Spirotetramat, trade in efficient regulate of sucking pests throughout diverse fruit and veggies plants as Apples Cabbage Peppers and so on.   The formula leverages the patent-pending Ayalon formula generation for enhanced efficacy.

• ADAMA endured to extend the Prothioconazol founded merchandise into fresh areas. Forapro^®, combining Prothioconazole with Fenpropidin, was once offered in France and Malta; Maganic, that includes a mix with Difenoconazole, expanded to Italy. Each merchandise leverage ADAMA’s distinctive Asorbital^® System Generation, turning in enhanced uptake and remarkable systemic efficiency.
• Paramer, a pre-emergence WG herbicide that includes Pyroxasulfone, was once introduced in Argentina. Designed to regulate grass and broadleaf weeds, efficient in key plants akin to wheat, soy, corn, and barley.

Registrations of differentiated merchandise all through This autumn 2024 integrated:

• Cazado, a fresh cutting edge OD herbicide formula, has been registered in Canada. Combining Pinoxaden and Thiencarbazone-methyl for a twin form of motion, it trade in wheat growers the primary in-crop approach to successfully regulate wild oats and proactively battle grassy weed resistance.
• Expanded registrations of Prothioconazol founded merchandise, all powered via ADAMA’s proprietary Asorbital^® System Generation, into fresh 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 cutting edge proprietary fungicide, submitted to the Fungicide Resistance Motion Committee (FRAC) for classification as fresh form of motion for cereals.

As well as, patents granted all through This autumn 2024 integrated: 

• China: Favor was once join for a patent protecting the formula of Saflufenacil in a soluble liquid mode.
• Australia: A patent was once granted for the proprietary formula of Quadrant^®.

Geopolitical Condition: Negative Subject material Have an effect on

ADAMA is headquartered and has 3 production websites in Israel. The regional tensions which escalated on October 7, 2023 have had incorrect subject material have an effect on to-date at the Corporate’s skill to help its markets or its consolidated monetary effects.

Monetary Highlights

Revenues within the fourth quarter declined via roughly 2% (-2% in RMB; +2% in CER) to $1,113 million, reflecting an build up of seven% in volumes greater than offset via a trim of four% in costs and unfavorable foreign currencies affects. Volumes have been up in comparison with This autumn 2023 pushed via call for healing in lots of areas because of advanced channel stock ranges, future the Corporate has endured transferring clear of decided on low cash in merchandise, marking the second one consecutive quarter of quantity expansion. Then again, the sure affects have been greater than offset via decrease costs because of just-in-time buying patterns of the channel in brightness of overcapacity and the next rate of interest ‎state, and unfavorable foreign currencies affects, basically depreciation of the Brazilian Actual. 

Those effects introduced the revenues within the complete yr of 2024 to $4,141 million, a lessen of roughly 11% (-10% in RMB; -8% in CER), reflecting a trim of 8% in costs on account of causes said above and solid volumes.

Notes: 
CER: Consistent Trade Charges
Numbers would possibly not sum because of rounding

Europe, Africa & Center East (EAME): Revenues in This autumn 2024 have been matching to these of This autumn 2023, with an build up in volumes offset via a matching trim in pricing. Right through 2024, pricing force remained sturdy, however channel secure ranges started to normalize next two years of lofty ranges.

North The us

Shopper & Skilled Answers: Fourth quarter and whole yr 2024 gross sales grew in each and every sector of its marketplace, and margins remained sturdy. Call for was once fueled via a expansion in one-use source of revenue.

ADAMA’s US Ag marketplace loved sure quantity expansion, handiest in part offset via pricing pressures. Hour channel stock ranges returned to post-pandemic commonplace, lofty rates of interest and decrease reduction commodity costs proceed to lead to just-in-time buying patterns.

In Canada, the 2024 reduction season had excellent rising situations, important to lofty utilization charges of herbicides and fungicides. Then again, decrease insect force ended in a smaller insecticide marketplace.

Latin The us: In Brazil, ADAMA’s gross sales in FY and This autumn 2024 loved sturdy expansion in fungicides (e.g., ALMADA, BLINDADO TOV) and pesticides (e.g., MAGNUM), with a lessen in non-selective herbicides. Then again, pricing pressures and the vulnerable foreign money negatively impacted efficiency. Within the extra of LATAM, gross sales have been weaker in FY and This autumn 2024 as in comparison to FY and This autumn 2023, most commonly because of higher festival and just-in-time buying patterns.

Asia-Pacific (APAC): Gross sales in APAC, except China, endured to enjoy pricing force right through 2024, with gross sales declining in comparison to FY and This autumn 2023. Enough over provide of Chinese language generics contributed to the declines. Gross sales in 2024 have been additionally impacted via unpredictable climate in Republic of India. Then again, pricing in some key markets akin to Australia appear to have stabilized. And fresh product registrations in Republic of India akin to Bazak^®, Forpido^® and the cushy creation of Upturn in This autumn have been smartly won.

In China, the gross sales within the fourth quarter higher basically pushed via quantity expansion of the lively factor (AI) industry and better pricing of the non-ag industry. The fourth quarter is an off season for branded formulations. The AI gross sales higher pushed via call for healing in lots of areas globally and enhanced control of key consumers, future the non-ag gross sales have been suffering from decrease gross sales in part offset via upper costs. Gross sales within the complete yr nonetheless mirrored vulnerable call for and costs. In line with the gradual markets, the branded formulations industry proactively promoted differentiated and high-margin merchandise, and the non-ag industry adjusted gross sales of sure low-profit merchandise, each attaining industry property development.

Reported improper cash in within the fourth quarter higher 25% to $274 million (improper margin of 24.7%) in comparison to $220 million (improper margin of 19.4%) in the similar quarter closing yr and reached $946 million (improper margin of twenty-two.9%) within the complete yr in comparison to $968 million (improper margin of 20.8%) closing yr.

Changes to reported effects: The adjusted improper cash in comprises reclassification of stock impairment, taxes and surcharge and excludes sure transportation prices (labeled below working bills), in addition to a provision linked to the park & aqua cleanup and remediation in regards to the Corporate’s ‎other websites, basically in Israel.

Adjusted improper cash in within the fourth quarter higher 14% to $280 million (improper margin of 25.2%) in comparison to $245 million (improper margin of 21.5%) in the similar quarter closing yr and reached $1,061 million (improper margin of 25.6%) within the complete yr in comparison to $1,060 million (improper margin of twenty-two.7%) closing yr.

The Corporate advanced the improper margin within the fourth quarter and the total yr, basically reflecting the sure have an effect on of decrease prices of fresh stock offered, and an advanced gross sales combine against upper margin merchandise following control’s focal point at the property of industrial. The improper cash in higher within the fourth quarter in comparison to This autumn 2023, additionally on account of quantity expansion which began within the 3rd quarter and were given more potent within the fourth quarter. The sure affects have been moderated via decrease costs and the unfavorable have an effect on of trade charges.

Running bills reported within the fourth quarter and whole yr of 2024 have been $320 million (28.7% of gross sales) and $991 million (23.9% of gross sales), in comparison to $247 million (21.8% of gross sales) and $906 million (19.4% of gross sales) within the corresponding classes closing yr, respectively.

Changes to reported effects: please the following the reason referring to changes to the improper cash in in recognize to sure transportation prices, taxes and surcharges and stock impairment.

The Corporate recorded sure non-operational pieces 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. Those come with basically: i. non-cash amortization fees in recognize of switch belongings won from Syngenta linked to the 2017 ChemChina-Syngenta acquisition; ii. non-cash amortization web fees linked to intangible belongings created as a part of the Acquire Worth Allocation (PPA) on acquisitions, with out a have an effect on at the ongoing efficiency of the corporations obtained; iii. bills linked to criminal claims; iv. restructuring and advisory prices incurred as a part of the implementation of the Struggle Ahead transformation plan; v. fastened asset impairment linked to development of operational potency, as a part of the Struggle Ahead plan; vi. registration impairment and ‎replace of registration depreciation. For additional main points on those non-operational pieces, the following the appendix to this loose.

Adjusted working bills within the fourth quarter and whole yr have been $205 million (18.4% of gross sales) and $850 million (20.5% of gross sales), in comparison to $220 million (19.4% of gross sales) and $918 million (19.7% of gross sales) within the corresponding classes closing yr, respectively.

The working bills have been decrease within the fourth quarter and whole yr of 2024, following endeavor tight OPEX control measures, together with tasks integrated within the Corporate’s transformation plan, decrease transportation and logistics prices and the ‎sure have an effect on of trade charges.

Running source of revenue reported within the fourth quarter reached a lack of $45 million (-4.1% of gross sales) in comparison to a lack of $27 million (-2.4% of gross sales) in the similar quarter closing yr and amounted to a lack of $45 million (-1.1% of gross sales) within the complete yr in comparison to an source of revenue of $62 million (1.3% of gross sales) closing yr.

Adjusted working source of revenue within the fourth quarter higher 208% to $75 million (6.7% of gross sales) from $24 million (2.1% of gross sales) in the similar quarter closing yr, and higher to $212 million (5.1% of gross sales) within the complete yr from $141 million (3.0% of gross sales) in the similar length closing yr. The rise in working source of revenue all through the fourth quarter and for the total yr of 2024 was once a mixed results of upper improper cash in and decrease working bills.

EBITDA reported within the fourth quarter higher 36% to $117 million (10.5% of gross sales) from $86 million (7.5% of gross sales) in the similar quarter closing yr, and reached $369 million (8.9% of gross sales) within the complete yr in comparison to $400 million (8.6% of gross sales) closing yr.

Adjusted EBITDA within the fourth quarter higher 45% to $137 million (12.3% of gross sales) from $95 million (8.3% of gross sales) in the similar quarter closing yr and higher 15% to $469 million (11.3% of gross sales) within the complete yr from $407 million (8.7% of gross sales) closing yr.

Adjusted monetary bills amounted to $61 million within the fourth quarter and $285 million within the complete yr, in comparison to $89 million and $348 million within the corresponding classes closing yr, respectively.

In each the fourth quarter and the total yr of 2024, monetary bills have been decrease basically because of (i) decrease web CPI have an effect on;  (ii) decrease curiosity paid on loans following a trim in loans and advanced potency of money control in brightness of the sure coins tide accomplished and, for the total yr, higher mortgage combine; and (iii) decrease put choices bills linked to minority stake in subsidiaries.

Adjusted taxes on source of revenue within the fourth quarter amounted to an expense of $71 million and $133 million within the complete yr, in comparison to $36 million and $30 million within the corresponding classes closing yr.

‎In spite of attaining losses prior to tax, the Corporate recorded tax bills within the fourth quarter and whole yr of 2024 basically ‎for the reason that losses have been basically incurred via subsidiaries with somewhat decrease tax charges, future some ‎of them didn’t form deferred tax belongings at the losses. At the alternative hand, the subsidiaries that ‎generated cash in have the next tax price. ‎

Within the fourth quarter and whole yr of 2024 the corporate recorded tax bills because of the non-‎coins have an effect on of the disease of the BRL in comparison with tax source of revenue because of more potent BRL within the fourth quarter and whole yr of 2023. ‎

Web loss reported within the fourth quarter was once $149 million and $407 million within the complete yr, in comparison to $79 million and $225 million within the corresponding classes closing yr, respectively.

Next reflecting the have an effect on of the abovementioned ordinary and non-operational fees, adjusted web loss within the fourth quarter was once $58 million, and $206 million within the complete yr, in comparison to $101 million, and $236 million within the corresponding classes closing yr, respectively.

Business running capital as of December 31, 2024, was once $2,111 million in comparison to $2,421 million as of December 31, 2023. The trim in running capital was once basically on account of the lessen within the stage of stock, together with that of completed items, from $1,848 million via finish of 2023 to $1,553 million as of finish of 2024. The lessen of inventories resulted from endured implementation of selective procurement practices, which began in 2023. Because the Corporate advanced its payable phrases following implementation of tasks as a part of the Corporate’s transformation plan, business payables remained flat future procurement was once strictly controlled. The trim in receivables mirrored the in depth collections and the decrease gross sales.

Money Stream: Running coins tide of $126 million was once generated within the fourth quarter and $528 million generated within the complete yr of 2024, in comparison to $293 million and $356 million within the fourth quarter and whole yr length of 2023, respectively. The working coins tide was once decrease within the fourth quarter basically because of decrease gross sales and one-time criminal claims-related bills. Within the complete yr, regardless of decrease gross sales, the working coins tide considerably advanced because of the corporate keeping up strict procurement practices, in depth collections and an development in provider phrases, reflecting implementation of tasks taken as a part of the corporate’s transformation plan.

Web coins old in making an investment actions was once $40 million within the fourth quarter and $162 million within the complete yr of 2024, in comparison to $108 million and $339 million within the corresponding classes closing yr, respectively. The decrease coins old in making an investment actions within the fourth quarter and the total yr mirrored prioritization of investments in its production amenities and the verdict to extend focal point on merchandise in form with the optimization of the Corporate’s portfolio. The residue within the complete yr additionally mirrored proceeds from the sale of an actual property asset within the 3rd quarter of 2024 and the cost of the purchase of AgriNova Fresh Zealand within the first quarter of 2023.

Separate coins tide of $38 million was once generated within the fourth quarter and $217 million generated within the complete yr of 2024 in comparison to $130 million generated within the fourth quarter and $147 million ate up within the corresponding classes in 2023, respectively, reflecting the aforementioned working and making an investment coins tide dynamics.

Notes:

• The gross sales fracture via product section is equipped for comfort functions handiest and isn’t consultant of the best way the Corporate is controlled or through which it makes its operational choices.
• Numbers would possibly not sum because of rounding.

Additional Data

All filings of the Corporate, in conjunction with a presentation of the important thing monetary highlights of the length, may also be accessed throughout the Corporate site at www.adama.com.

About ADAMA

ADAMA Ltd. is a world chief in reduction coverage, offering sensible answers to farmers the world over to battle weeds, bugs and illness. Our tradition empowers ADAMA’s crowd to actively pay attention to farmers and ideate from the farmland. ADAMA’s numerous portfolio of current lively substances, coupled with its important formula functions and proprietary formula generation platforms, uniquely place the corporate to assemble top quality, cutting edge and sustainable merchandise, to deal with the various demanding situations farmers and consumers face lately. ADAMA serves consumers in dozens of nations globally, with direct presence in all manage 20 markets. For more info, seek advice from us at www.ADAMA.com and observe us on X at @ADAMAAgri.

Touch

Joshua Phillipson
International Investor Members of the family
E mail: [email protected]                              

Zhujun Wang
China Investor Members of the family
E mail: [email protected] 

Abridged Adjusted Consolidated Monetary Statements

Refer to abridged consolidated monetary statements and notes were ready as described in Notice 1 on this appendix. Hour ready in response to the foundations of Chinese language Accounting Requirements (ASBE), they don’t include all the data which both ASBE or IFRS will require for an entire i’m ready of monetary statements, and will have to be learn at the side of the consolidated monetary statements of each ADAMA Ltd. and Adama Agricultural Answers Ltd. as filed with the Shenzhen and Tel Aviv Store Exchanges, respectively.

Related source of revenue remark pieces contained on this loose also are introduced on an “Adjusted” foundation, which exclude pieces which might be of a one-time or non-cash/non-operational nature that don’t have an effect on the continuing efficiency of the industry, and mirror the best way the Corporate’s control and the Board of Administrators view the efficiency of the Corporate internally. The Corporate believes that except the consequences of this stuff from its working effects permits control and buyers to successfully examine the actual underlying monetary efficiency of its industry from length to length and in opposition to its international friends.

Notes to Abridged Consolidated Monetary Statements

Notice 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 “Company”), together with Adama Agricultural Answers Ltd. (“Solutions”) and its subsidiaries.

The Corporate has followed the Accounting Requirements for Trade Enterprises (ASBE) issued via the Ministry of Finance (the “MoF”) and the implementation steering, interpretations and alternative related provisions issued or revised therefore via the MoF (jointly known as “ASBE”).

The abridged consolidated monetary statements contained on this loose are introduced in each Chinese language Renminbi (RMB), because the Corporate’s stocks are traded at the Shenzhen Store Trade, in addition to in United States bucks ($) as that is the key foreign money through which the Corporate’s industry is carried out. For the needs of this loose, a commonplace comfort translation has been old for the interpretation from RMB to US bucks, with Source of revenue Remark and Money Stream pieces being translated the usage of the quarterly reasonable trade price, and Stability Sheet pieces being translated the usage of the trade price on the finish of the length.

The preparation of monetary statements calls for control to manufacture estimates and suppositions that impact the reported quantities of belongings and liabilities and disclosure of contingent belongings and liabilities on the past of the monetary statements, and the reported quantities of revenues and bills all through the reporting length. Fresh effects may just range from the ones estimated.

Notice 2: Abridged Monetary Statements

For diversion of virtue, the monetary statements proven on this loose were abridged as follows:

Abridged Consolidated Source of revenue Remark:

• “Gross profit” on this loose is income much less prices of products offered, taxes and surcharges, stock impairment and alternative refreshment fees (along with the ones already integrated in prices of products offered); a part of the refreshment fees is got rid of within the Adjusted monetary statements
• “Other operating expenses” comprises impairment losses (no longer together with stock impairment); achieve (loss) from disposal of belongings and non-operating source of revenue and bills
• “Operating expenses” on this loose range from the ones within the officially reported monetary statements in that sure transportation prices were reclassified from COGS to Running Bills.
• “Financial expenses” comprises web financing bills and features/losses from adjustments in honest price.

Abridged Consolidated Stability Sheet:

• “Other current assets, receivables and prepaid expenses” comprises monetary belongings held for buying and selling; monetary belongings in recognize of derivatives; prepayments; alternative receivables; and alternative latest belongings
• “Fixed assets, net” comprises fastened belongings and development in advance
• “Intangible assets, net” comprises intangible belongings and benevolence
• “Other non-current assets” comprises alternative fairness investments; long-term fairness investments; long-term receivables; funding attribute; and alternative non-current belongings
• “Loans and credit from banks and other lenders” comprises temporary loans and non-current liabilities due inside one yr
• “Other current liabilities” comprises monetary liabilities in recognize of derivatives; payables for worker advantages, taxes, curiosity, dividends and others; advances from consumers and alternative latest liabilities
• “Other long-term liabilities” comprises long-term payables, provisions, deferred source of revenue and alternative non-current liabilities

Notes:

1.  Amortization of acquisition-related PPA and alternative acquisition linked prices:

a.  Amortization of Legacy PPA of 2011 acquisition of Answers (non-cash): Underneath ASBE, because the 3rd mixed reporting for Q3 2017, the Corporate has inherited the ancient “legacy” amortization fee that ChemChina in the past was once incurring in recognize of its acquisition of Answers in 2011. This amortization is completed in a unbending method on a quarterly foundation, maximum of which can have been finished via the tip of 2020.

b.  Amortization of acquisition-related PPA (non-cash) and alternative acquisition-related prices: Alike basically to the non-cash amortization of intangible belongings created as a part of the Acquire Worth Allocation (PPA) on acquisitions, with out a have an effect on at the ongoing efficiency of the corporations obtained, in addition to alternative M&A-related prices.

2.  Amortization of Switch belongings won and written-up because of 2017 ChemChina-Syngenta transaction (non-cash): The proceeds from the Divestment of reduction coverage merchandise in reference to the esteem via the EU Fee of the purchase of Syngenta via ChemChina, web of taxes and transaction bills, have been paid to Syngenta in go back for the switch of a portfolio of goods in Europe of matching nature and financial price. For the reason that merchandise obtained from Syngenta are of the similar nature and with the similar web financial price as the ones divested, and because in 2018 the Corporate adjusted for the one-time achieve that it made at the divested merchandise, the backup amortization fee incurred because of the written-up price of the obtained belongings could also be adjusted to give a constant view of Divestment and Switch transactions, which had incorrect web have an effect on at the underlying financial efficiency of the Corporate. Those backup amortization fees will proceed till 2032 however at a decreasing price, but will nonetheless be at a significant stage till 2028.

3.  Sped up depreciation: Those fees relate to sped up depreciation attributed to the improve & relocation systems in China and Israel, through which manufacturing belongings situated within the used manufacturing websites in Huai’An and Beer-Sheva are in relocation procedure to fresh websites. Since some used manufacturing belongings would possibly not be capable of be relocated, or don’t seem to be operational, those are depreciated over a shorter length.

4.  Incentive plans: ADAMA granted sure of its workers, a long-term incentive (LTI) within the mode of ‘phantom’ awards connected to the Corporate’s percentage worth. As such, the Corporate data an expense, or appreciates source of revenue, relying at the fluctuation within the Corporate’s percentage worth, irrespective of award workout routines. To neutralize the have an effect on of such percentage worth actions at the size of the Corporate’s efficiency and anticipated worker repayment and to mirror the present phantom awards, within the Corporate’s adjusted monetary efficiency, the LTI is gifted on an equity-settled foundation based on the price of the present plan on the provide past.

5.  & 6. ASBEs classifications COGS have an effect on: in keeping with the ASBE pointers [IAS 37], sure pieces (in particular sure transportation prices) are labeled below COGS.

7.  ‎Restructuring and advisory prices: The Corporate initiated its Struggle Ahead transformation plan in early 2024. A part of the plan comprises restructuring its organizational construction, team of workers and managerial processes, and because of this thereof, the Corporate recorded restructuring and advisory prices.  

8.  Mounted belongings impairment: As a part of the Corporate’s strategic course to reinforce operational potency, the Corporate determined to concentrate on high-performing amenities. In consequence, next comparing their web keep price and recoverable quantity, the Corporate recorded impairments linked to sure amenities. In 2023, the impairment was once recorded for a subsidiary’s amenities because of adjustments within the markets and improve in generation.

9.  Ground and aqua cleanup and remediation: a wholly-owned oblique subsidiary of the Corporate ‎filed with Israel’s Ministry of Environmental Coverage a remediation plan referring to ‎its plant in Be’er Sheva in Q2 2024. Right through Q3 and This autumn 2024 backup bills have been recorded in regards to the Corporate’s websites in Israel and Brazil.  

10.  ‎Expenses linked to criminal claims: Prison claims linked to product liabilities was once settled in 2024 and incurred bills.

11.  Registration impairment and ‎replace of registration depreciation: That is basically linked to the control’s strategic determination to extend focal point on merchandise in form with the optimization of the Corporate’s portfolio, and therefore to concentrate on the property of industrial to succeed in a greater gross sales combine of upper margin merchandise.

12.  Non-cash, non-recurring source of revenue because of revaluation of put choices attributed to minority stake in subsidiaries in each 2024 and 2023 and loose of holdback linked to the actual acquisition in 2023.

13.  Alternative financing bills: Bills basically deriving from tax claims surcharges and inflation.

Trade Fee Knowledge for the Corporate’s Primary Practical Currencies

Ahead shopping remark:

This press loose printed via ADAMA Ltd. or ADAMA Agricultural Answers Ltd. (in combination the “Company”) is for advertising and marketing and knowledge functions handiest, and incorporates forward-looking statements which might be in response to Corporate’s control’s ideals and suppositions and on data lately to be had to the Corporate’s control. Through this press loose, the Corporate does no longer intend to provide, and the click loose does no longer represent, skilled or industry recommendation or an do business in or advice to accomplish any transaction within the Corporate’s securities. The accuracy, completeness and/or adequacy of the content material of this press loose, in addition to any estimation and/or evaluate integrated on this press loose, if in any respect, isn’t warranted or assured and the Corporate disclaims any aim and/or legal responsibility to agree to such content material. The Corporate shall no longer be accountable for any loss, declare, legal responsibility or harm of any type on account of your reliance on, or connection with, any constituent, reality or opinion introduced herein. The Corporate’s exams are in response to the guidelines to be had to the Corporate as of the past hereof, and is probably not discovered or be discovered in a special method than the Corporate estimates, inter alia, because of elements out of the Corporate’s regulate, together with the chance elements indexed within the Corporate’s annual experiences and adjustments within the business or attainable operations of the Corporate’s competition. Any content material contained herein shall no longer represent or be construed as any regulatory, valuation, criminal, tax, accounting and funding recommendation or any recommendation of any type or any a part of it, nor shall they represent or be construed as any advice, solicitation, do business in or constancy (or any a part of it) to shop for, promote, subscribe for or underwrite any securities, lend any credit score or insurance coverage or have interaction in any transactions. Sooner than getting into into any transactions, you shall assure that you just absolutely perceive the prospective dangers and returns of such transactions. Sooner than making such choices, you shall seek the advice of the counselors you suppose essential, together with your accountant, funding consultant and criminal and tax experts. The Corporate and its associates, controlling individuals, administrators, officers, companions, workers, brokers, representatives or their advisors shall no longer think any tasks of any type (together with negligence or others) for the virtue of and reliance on such data via you or anyone to whom such data are equipped.

^{[1] Resources: AgbioInvestor Marketplace Perception – Reduction Coverage and Seed Markets 2024 (February 2025); AgbioInvestor, Reduction Coverage and Traded Seed Marketplace 2028 Forecast; CCPIA (China Reduction Coverage Business Affiliation)‎, peer quarterly monetary experiences, inside resources}

^{[2] For an research of the variations between the adjusted source of revenue remark pieces and the source of revenue remark pieces as reported within the monetary statements, see under “Analysis of Gaps between Adjusted Income Statement and Income Statement in Financial Statements”.}

^{[3] The collection of stocks old to calculate each unsophisticated and diluted profits consistent with percentage in each This autumn 2024 and 2023 is two,329.8 million stocks.}

^{[4] For an research of the variations between the adjusted source of revenue remark pieces and the source of revenue remark pieces as reported within the monetary statements, see under “Analysis of Gaps between Adjusted Income Statement and Income Statement in Financial Statements”.}

^{[5] The collection of stocks old to calculate each unsophisticated and diluted profits consistent with percentage in FY 2024 and 2023 is two,329.8 million stocks.}

Brand – https://mma.prnewswire.com/media/799829/Adama_Agricultural_Solutions_Logo.jpg

SOURCE ADAMA Ltd.