Sales grew 10.2% to an all-time Q4 record-high of $1,141 million
ADAMA Ltd. has reported its financial results for the fourth quarter and the full-year period ended December 31, 2020. Commenting on the results, Erik Fyrwald, Chairman of ADAMA’s Board of Directors, said, “ADAMA ended 2020 on an extremely strong note, delivering a record fourth quarter, driving growth over the full-year period despite the many challenges seen throughout the year.
The company supplied record amounts of its products to customers, helping farmers to safely feed the world during the global COVID-19 pandemic. ADAMA’s passion and commitment to supporting farmers resonated in dozens of local community initiatives across the globe during the pandemic. Additionally, ADAMA’s commercial and operational collaborations with its partners within the Syngenta Group, as well as its continued investment in innovative solutions for agriculture, provides farmers with the best technology and expertise to increase productivity and sustainably grow healthy and affordable food.”
Fourth Quarter 2020 Highlights
- Sales grew 10.2% (+17.0% at Constant Exchange Rates, CER) to an all-time Q4 record-high of $1,141 million, driven by robust volume growth across all regions, and achieved despite an estimated $71 million impact from weaker currencies versus Q4 2019
- Adjusted EBITDA of $168 million, up 8.4% versus Q4 2019, despite an estimated $59 million negative FX impact
- Reported net income of $19 million, compared to a loss of $74 million in Q4 2019
- Adjusted net income up 10.3% to $53 million, despite an estimated $54 million in FX headwinds
Full Year 2020 Highlights
- Sales up 3.3% to hit an all-time high of $4,128 million (+10.6% in CER terms), despite COVID-19 related challenges; USD sales impacted by an estimated $293 million due to weaker currencies versus 2019
- Adjusted EBITDA of $628 million (2019: $692 million), reflecting an estimated $224 million in negative FX impact, more than offsetting robust business growth
- Reported net income up 19.4% to $51 million, compared to $43 million in 2019
- Adjusted net income of $176 million (2019: $258 million), largely reflecting an estimated negative FX impact of $252 million
2021 Outlook
- Supportive global demand for crop protection products driven by current positive crop price outlook
- USD growth and profitability improvements dependent, amongst others, on stabilized currencies against the US dollar
- Recent increases in procurement costs of raw materials, intermediates and active ingredients, if sustained for an extended period, may challenge gross margins over the coming quarters
- The Company actively manages its procurement and supply chain activities in order to mitigate these higher procurement costs, and adjusts its pricing wherever possible to compensate
- Continued progress on the relocation and upgrade of China production and environmental facilities
- Expecting to start production at the new site in Jingzhou within the next few months
