#None #crop protection #ESG Performance #ADAMA Ltd.

ADAMA Ltd. Financial Results: Second Quarter and First Half of 2025

On August 26, 2025, ADAMA Ltd. released its financial performance results for the second quarter and the first half of 2025. The company demonstrated notable year-on-year growth, marking a significant return to form since Q3 of 2022.

Key Highlights from the Second Quarter of 2025

• - Sales Growth: The company recorded revenues of $1,092 million, reflecting a 5% increase compared to the same quarter the previous year. This growth was primarily driven by an 8% boost in sales volume, which successfully counteracted a 3% decline in pricing.
• - Gross Profit Improvement: ADAMA achieved an adjusted gross profit of $318 million, an 18% rise compared to last year. This resulted in an improved gross margin of 29.1%, showcasing the benefits of reduced costs and increased sales volume.
• - EBITDA Gains: Adjusted EBITDA rose by 25% to $150 million, leading to an EBITDA margin of 13.7%, up from 11.5% in the prior year.
• - Net Income Results: For the first time in over a year, adjusted net income turned positive at $6 million, a notable turnaround from a loss of $61 million last year. The total net loss improved significantly from $94 million to $32 million year-over-year.

First Half Year Financial Performance

For the first half of 2025, ADAMA reported stable sales around $2,091 million, showcasing a minimal fluctuation of 0% in USD terms and a modest 1% increase in RMB. The revenue stability was supported by a volume increase of 4%, although this was offset by a similar 3% decline in pricing.

• - Adjusted Gross Profit: The adjusted gross profit for the first half increased by 11% to total $620 million, with a gross margin of 29.7%.
• - EBITDA: The adjusted EBITDA for the half year also saw an uptick, rising by 23% to $310 million.
• - Return to Profitability: After adjusting for one-time and non-operational items, the company reported a net income of $49 million, significantly better than the loss of $71 million from the previous year.

Management Insights

Gaël Hili, President and CEO of ADAMA, expressed optimism about the progress under the 'Fight Forward' transformation plan. He emphasized that Q2 marked the return to revenue growth and consistent EBITDA developments over the past five quarters. Hili mentioned the company's dedication to optimizing its financial management to ensure ongoing profitability and cash flow generation, which contributes to a stronger capital structure and efficient inventory management.

Market Context and Strategic Positioning

The report also highlights a stabilizing crop protection market, with channel inventories returning to pre-pandemic levels, which is aiding demand recovery. Despite ongoing pricing pressures from active ingredient overcapacity and high-interest rates impacting farmer profitability, ADAMA has adopted strategic shifts to enhance agility and commercial execution, particularly focusing on innovative solutions tailored to meet farmer needs.

ESG and Regulatory Environment

Following the recent geopolitical tensions in the region, ADAMA noted minimal impact on operations, showcasing its resilience. Simultaneously, the company achieved a notable milestone with improved ESG performance ratings, securing a position in the top 23% of its sector on EcoVadis.

Conclusion

With a renewed focus on providing differentiated high-value solutions and robust financial results, ADAMA Ltd. is positioning itself for sustainable growth amidst market challenges. As the company looks ahead, its commitment to innovation and operational excellence remains critical to addressing the evolving needs of farmers worldwide.