ADAMA agchem sales up 5% in 2014

ADAMA Agricultural Solutions posted an increase of 2.8% in sales to $674.2 million for the fourth quarter of 2014 Y-O-Y. For the full year of 2014, sales increased by 4.7% to $3,221.3 million. This increase reflects growth in all of the main regions in which the Company operates, and is one of the highest growth rates of the main companies competing in the crop protection sector.

EBITDA for the fourth quarter of 2014 increased by 2.3% to $52.7 million. For the full year of 2014, EBITDA increased by 3.0% to $480.0 million.

ADAMA agchem sales results ($ million)
Q4 ended Dec 31	Q4 2014	Q4 2013	% Change	Full Year 2014	Full Year 2013	% Change
Sales	674.2	655.7	+2.8	3,221.3	3076.4	+4.7
Net income(loss)	(32.6)	(29.1)	(11.9)	151.3	127.1	+19.1
EBITDA1	52.7	51.5	+2.3	480.0	466.0	+3.0
1 earnings before interest, tax, depreciation and amortization

Commenting on the results, Mr. Yang Xingqiang, Adama's Chairman, said, “Adama’s 2014 results, which ranked among the best in our industry, reflect the ongoing execution of our strategic plan, the strength of our integrated platform and our ability to effectively serve farmers’ needs in key agricultural markets across the globe. The Company’s robust business momentum led to growth across all key financial indicators.

"The past year was an exceptional period for Adama as we took a number of steps to position our organization for long-term growth. Most importantly, we laid the groundwork for our expansion into China, a vital and fast-growing market with significant untapped potential. With investments currently underway in a global formulation center and R&D hub in China, as well as combining with the China Business, Adama is building the foundation of a leading platform, which will allow the Company to fully capitalize on this major growth opportunity.

"During the past year we also launched and successfully rolled-out our new brand, which unifies our presence across the world under a single, global identity, with the purpose of simplifying the lives of farmers.”

Sales by regions

ADAMA agchem sales results by region ($ million)
Q4 ended Dec 31	Q4 2014	Q4 2013	% Change	Full Year 2014	Full Year 2013	% Change
Europe	140.2	136.2	+2.9	1,186.7	1,140.3	+4.1
Latin America	822.5	757.5	+5.1	822.5	757.5	+8.6
North America	134.0	126.0	+6.3	544.8	516.2	+5.5
Asia Pacific, Africa & Israel	135.3	141.7	-4.5	667.3	662.4	+0.7

Revenues in Europe increased by 4.1% to $1,186.7 million for the full year 2014. The Company’s performance in Europe over the year was characterized by positive business momentum stemming mainly from an increase in both quantities sold and selling prices, partially offset by negative currency effects. Revenues in Europe during the fourth quarter of 2014 increased by 2.9% to $140.2 million.

For the full year of 2014, revenues in North America increased by 5.5% to $544.8 million. The increase in sales in North America stemmed mainly from an increase in quantities sold, partially offset by lower selling prices. Revenues in North America during the fourth quarter of 2014 amounted to $134.0 million, compared with $126.0 million in the fourth quarter of 2013, an increase of 6.3%.

The strongest growth region for the year was Latin America, where revenues grew by 8.6% to $822.5 million. The increase in sales stemmed mainly from an increase in quantities sold. Revenues in Latin America during the fourth quarter of 2014 increased by 5.1% to $264.7 million.

For the full year of 2014, revenues in Asia Pacific, Africa & Israel increased by 0.7% to $667.3 million. The increase in sales in 2014 stemmed primarily from an increase in quantities sold, partially offset by negative currency effects. In constant currency terms, revenues for the full year 2014 increased by 4.8% compared with 2013. During 2014, Adama established a company in Turkey, an approximately $500 million dollar market, which recorded its first sales in 2014.

Revenues in Asia Pacific, Africa & Israel during the fourth quarter of 2014 amounted to $135.3 million compared with $141.7 million in the fourth quarter of 2013, a decrease of 4.5%. However, in constant currency terms, revenues for the fourth quarter 2014 increased by 0.6% compared with the fourth quarter of 2013.