Adama agchem sales down 3% in Q2 2015

In constant currency terms, revenues for the second quarter of 2015 increased by 3.6% compared to the same period last year, with a more than 7% increase in quantities being partially offset by a certain decline in prices. Factoring in the effect of the significant decline of currencies relative to the US Dollar, USD revenues for the period totaled $851.3 million, compared with $875.9 million for the same period last year.

During the half-year period, revenues increased by 2.0% compared to the same period last year in constant currency terms. In US Dollar terms, revenues for the half-year period totaled $1,718 million, compared with $1,785 million for the same period last year. 

Commenting on the results, Yang Xingqiang, Chairman of Adama’s Board of Directors, said, "Adama continues to achieve strong business performance in tough market conditions, as reflected by its volume-driven growth of revenues in local currencies. Extended low agricultural commodity prices, as well as difficult weather conditions in certain key geographies, continue to challenge farmers across the world. However, these results reflect the strength of Adama, based on its global commercial platform, increasingly advanced portfolio and fully integrated value chain".

Chen Lichtenstein, President and CEO of Adama, commented, “We are pleased with our results in the second quarter, which underline clear volume growth in each of our key geographies, notwithstanding the adverse market conditions in which we operate. Over the first half of the year we reduced our procurement and production costs, which, when combined with tight operating expense control, allowed us to improve key profitability metrics, and exceed the performance of our sector. Working capital management has resulted in a significant improvement in our free cash flow over the first half of the year, allowing us to continue to invest in the future growth of the business."

Sales by regions

Europe: In constant currency terms, revenues in Europe during the second quarter of 2015 increased by 4.6% compared to the corresponding quarter last year, led by strong volume growth in Southern Europe. In USD terms, revenues in Europe in the second quarter of 2015 totaled $321.8 million, compared with $336.1 million in the corresponding quarter last year, reflecting the negative effect of foreign exchange rates. In the first half of the year, in constant currency terms, revenues in Europe increased by 4.1% compared to the corresponding period last year. In USD terms, revenues in Europe in the first half of the year totaled $778.6 million, compared to $803.4 million in the corresponding period last year, reflecting the negative effect of currencies.

North America: In constant currency terms, revenues in North America during the second quarter of 2015 increased by 2.9% compared to the corresponding quarter last year, reflecting primarily an increase in quantities sold. In USD terms, revenues in North America in the second quarter of 2015 increased to $178.6 million, compared to $175.5 million in the corresponding quarter last year, despite the depreciation of the Canadian Dollar. In the first half of the year, in constant currency terms, revenues in North America increased by 2.3% compared to the corresponding period last year. In USD terms, revenues in North America in the first half of the year increased to $317.1 million, compared to $313.9 million in the corresponding period last year, despite a negative currency impact.

Latin America: In constant currency terms, revenues in Latin America during the second quarter of 2015 increased by 1.1% compared to the corresponding quarter last year, reflecting growth in volumes partially offset by a decrease in prices. In USD terms, revenues in Latin America in the second quarter of 2015 totaled $164.9 million, compared to $169.6 million in the corresponding quarter last year, reflecting the negative effect of foreign exchange rates. In the first half of the year, in constant currency terms, revenues in Latin America decreased by 2.1% compared to the corresponding period last year. In USD terms, revenues in Latin America in the first half of the year totaled $288.8 million, compared to $305.8 million in the corresponding period last year, reflecting the decline in currencies and, to some extent, in prices, partially offset by volume growth.

India, Middle East & Africa: In constant currency terms, revenues in India, Middle East & Africa during the second quarter of 2015 increased by 1.1% compared to the corresponding quarter last year. In USD terms, revenues in India, Middle East & Africa in the second quarter of 2015 totaled $105.9 million, compared with $113.4 million in the corresponding quarter last year, reflecting the negative effect of foreign exchange rates. In the first half of the year, in constant currency terms, revenues in India, Middle East & Africa increased by 1.3% compared to the corresponding period last year. In USD terms, revenues in India, Middle East & Africa in the first half of the year totaled $175.4 million, compared to $186.8 million in the corresponding period last year, reflecting the decline in currencies and, to some extent, in prices, partially offset by volume growth.

Asia Pacific: In constant currency terms, revenues in Asia Pacific during the second quarter of 2015 increased by 10% compared to the corresponding quarter last year, reflecting strong volume growth partially offset by lower prices. In USD terms, revenues in Asia Pacific in the second quarter of 2015 totaled $80.1 million, compared with $81.3 million in the corresponding quarter last year, reflecting the impact of the decline in foreign exchange rates. In the first half of the year, in constant currency terms, revenues in Asia Pacific decreased by 0.6% compared to the corresponding period last year. In USD terms, revenues in Asia Pacific in the first half of the year totaled $158.1 million, compared to $175.7 million in the corresponding period last year due to currencies and exceptionally dry weather in South-East Asia.