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ADAMA Ltd. Financial Results for Q3 and First Nine Months 2025

Date: October 29, 2025
ADAMA Ltd. (SZSE: 000553) recently announced its financial results for the third quarter and the first nine months of 2025, concluding on September 30, 2025. This report highlights key developments in its sales performance and strategic initiatives aimed at enhancing operational efficiency and profitability.

Highlights of Q3 2025

• - Sales Performance: The company achieved stable sales of $933 million, reflecting a 1% increase in volume offset by a 1% decrease in prices. This performance underscores the effective implementation of ADAMA’s ongoing transformation plan.
• - Gross Profit Increase: Adjusted gross profit rose significantly, up 14% to $257 million compared to the same quarter last year. The gross margin improved from 24.2% to 27.6%, attributed to lower costs and higher volumes.
• - EBITDA Growth: Adjusted EBITDA surged by 50% to $120 million, with the EBITDA margin climbing to 12.9% from 8.6% in the prior year.
• - Reduced Net Loss: The adjusted net loss contracted markedly from $78 million to $20 million, while the reported net loss improved by $85 million, decreasing from $133 million to $48 million.

Performance Overview for the First Nine Months of 2025

• - Consistent Sales: Total sales stood at $3,025 million, reflecting a slight decrease in prices by 3%, while volumes grew by 3%.
• - Gross Profit Growth: Adjusted gross profit also rose by 12% to $878 million, and the gross margin improved to 29.0% from 25.8% year-on-year.
• - Significant EBITDA Increase: Year-to-date, adjusted EBITDA rose 30% to $430 million, boosting the EBITDA margin to 14.2% from 11.0% last year.
• - Turnaround in Net Income: Adjusted net income flipped to a positive $29 million, recovering from a loss of $149 million last year. The reported net loss also decreased drastically from $259 million to $59 million.

Operational Highlights

President and CEO Gaël Hili stated, “Our Q3 results indicate our effective strategy is yielding improvements in financial metrics. The sustained sales stability and our sixth consecutive quarter of EBITDA growth affirm that our 'Fight Forward' transformation plan is effectively reshaping our business for the future.”
This strategic initiative focuses on enhancing operational foundations, commercial execution, and driving innovation across the product portfolio.

New Product Developments

During the third quarter, ADAMA continued to innovate its product offerings, launching several new agricultural solutions across various global markets. Notable launches include:

• - FERRABAIT®: A patented molluscicide launched in New Zealand targeting arable, horticultural, and ornamental crops.
• - COSAYR®: A long-lasting insecticidal suspension introduced in several countries, including Canada and Hungary, for effective control of chewing insects.
• - Recent registrations of key differentiated products in specific European markets further exemplify ADAMA’s commitment to expanding its innovative product line.

Market Context and Challenges

The crop protection market is undergoing a recovery post-pandemic as channel inventories normalize. However, pricing pressures persist due to production overcapacity and sustained low crop commodity prices. ADAMA continues to adapt to these market conditions, focusing on customer value and operational efficiency.

Financial Management Outlook

ADAMA reported an operating cash flow of $331 million across the first nine months, alongside improving working capital dynamics, resulting in effective inventory management strategies. As the company continues with its transformation plans, it is well-positioned for sustainable growth moving forward.

Conclusion

ADAMA Ltd.'s robust financial performance in Q3 2025 and the first nine months marks a significant milestone in its strategic transformation journey. By focusing on operational effectiveness and innovative product development, the company is poised for long-term success in the evolving agricultural sector.