ADAMA agchem sales up 9% in Q2 2014

ADAMA Agricultural Solutions Ltd. (formerly Makhteshim Agan Industries) posted a strong growth in the second quarter of 2014. The sales rose by 9% to $875.9 million, as compared to $803.3 million from the same period of 2013. As for the half-year period, sales increased by 5.7% to $1,785.7 million.

EBITDA for the second quarter increased by 6.5% to $141.2 million (16.1% of sales) from $132.6 million (16.5% of sales) in Q2 2013. For the half-year period, EBITDA increased by 3.9% to $312.7 million (17.5% of sales) from $301.0 million (17.8% of sales) in the first half of 2013.

"During the quarter, we began rolling out our new brand globally; a process that will contribute to the strengthening of our commercial platform, which is focused on supporting local farmer needs with global expertise and quality solutions. Additionally, we have begun to implement a new organizational structure to focus on the implementation of our growth strategy alongside the continued advancement of our key strategic initiatives in China"

Sales by regions

During the second quarter, sales in Europe decreased slightly to $336.1 million from $340.6 million in Q2 2013, reflecting the short winter, which shifted the timing of some sales to the first quarter, followed by unseasonably cold and wet weather during the first half of the second quarter, which decreased demand during that period. However, over the half-year period, sales increased by 3.4% to $803.4 million from $776.6 million in H1 2013, reflecting an increase in sales volumes and the raising of selling prices. The strengthening of the Euro during the period was offset by currency hedging.

Sales in Latin America rose 21.3% to $169.6 million from $139.8 million in Q2 2013 in the second quarter, reflecting significant volume increases in Brazil and across the region, offset partially by a decrease in selling prices. Over the first half of the year, sales in Latin America increased by 14.0% to $305.9 million from $268.2 million in H1 2013.

For the second quarter, sales in North America rose by 16.4% to $175.5 million from $150.8 million in Q2 2013. The increase reflected higher sales volumes that were achieved despite a number of challenges during the season, including adverse weather conditions, inventories accumulated in the distribution channels and the weakening of the Canadian dollar. Over the first half of the year, sales in North America increased by 5.8% to $313.9 million from $296.6 million in the first half of 2013, reflecting the factors described above.

sales in Asia Pacific and Africa increased by 14.5% to $165.2 million from $144.2 million in Q2 2013 in the second quarter, reflecting an increase in sales volumes, notably in India, despite drought conditions in a number of Asian countries. This was offset partially by the weakening of currencies in certain of the countries in the region. For the first half of the year, sales in the region increased by 5.3% to $307.9 million compared with $292.3 million for H1 2013, with the strong growth in quantities sold in the second quarter compensating for the decrease in quantities sold in the first quarter.

Sales in Israel during the second quarter increased by 5.7% to $29.5 million. Sales over the first half of 2014 decreased by 0.5% to $54.6 million.