#Israel #Tel Aviv #financial results #crop protection #ADAMA Ltd.

ADAMA Ltd. Announces Positive First Quarter 2025 Results

ADAMA Ltd., a prominent player in the global crop protection sector, has released its financial performance report for the first quarter of 2025, ending March 31st. The results reflect a resilient strategy and operational improvements, despite experiencing some headwinds in market conditions.

Financial Highlights

During the first quarter, ADAMA's sales dipped by 5% year-over-year, totaling $1,000 million. This decrease arises from stable sales volumes coupled with a decrease in prices by 4%. Conversely, the adjusted gross profit increased by 5%, reaching $303 million. The gross margin made notable gains, rising from 27.2% in Q1 2024 to 30.3% in Q1 2025, primarily benefiting from cost reductions.

Adjusted EBITDA witnessed a robust growth of 21%, amounting to $160 million, contributing to an improved EBITDA margin of 16% compared to 12.5% in the previous year.

The company reported an adjusted net income of $44 million, a striking recovery from a loss of $10 million in Q1 2024. The reported net income reached $21 million, marking a significant reversal from the prior year’s loss of $32 million.

Operational Improvements

One of the key drivers for these positive results includes a $75 million improvement in operating cash flow and a $108 million enhancement in free cash flow. Gaël Hili, President and CEO, attributed these advancements to ADAMA's ongoing 'Fight Forward' strategic transformation plan, aimed at enhancing operational efficiencies and financial management.

Hili commented, _"Our positive quarterly net profit is a testament to the dedicated efforts of our team amid challenging market conditions. We remain optimistic about sustaining this momentum for continued success in delivering long-term value to our stakeholders, including farmers globally."_

Market Environment

The general crop protection market has encountered persistent pressures in Q1. Commodity crop prices remained subdued, impacting farmer returns despite slight easing of input costs. Nonetheless, ADAMA is navigating these waters through strategic product launches and an enhanced portfolio.

As part of the Fight Forward strategy, the company has introduced several new products aimed at addressing specific farmer needs and enhancing product offerings in various markets. Notable launches in Q1 2025 include:

• - Cazado in Canada, a novel herbicide for wheat growers targeting wild oats and preventing grassy weed resistance.
• - Prothioconazole-based Products, expanding portfolio offerings across EU markets showcasing advanced formulation technology.
• - Gengfule in China, a pre-emergent herbicide for broad-spectrum weed control.

These strategic launches underline ADAMA's commitment to innovation and responding to market demands effectively.

Geopolitical and Economic Factors

Based in Israel, ADAMA has remained operationally stable amid regional tensions, which began escalating on October 7, 2023. The company continues to monitor U.S. tariff policies closely and adapts its operational strategies accordingly. Financial expenses reduced significantly, largely due to improved cash management and reduced hedging costs, further enhancing the overall financial health of the enterprise.

The business environment through Q1 remains challenging, with ample supply contributing to low active ingredient (AI) prices and a need for prudent inventory management practices. However, ADAMA's adaptability and innovation-focused mindset position the company positively for future quarters.

Conclusion

In summary, ADAMA Ltd.'s first quarter of 2025 reflects significant financial recovery and operational enhancements amid market challenges. The company’s proactive strategies in product development and transformation initiatives are paving the way for a potentially prosperous 2025. As agriculture continues to evolve, ADAMA’s ongoing commitment to farmer support and sustainable practices remains central to its mission.

Explore more about ADAMA Ltd. and its ongoing developments at ADAMA.com