ADAMA agchem sales up 4% in Q3 2014

ADAMA Agricultural Solutions Ltd. (formerly Makhteshim Agan Industries) posted sales of $761.5 million for the third quarter of 2014, compared with $732.0 million in the third quarter of 2013. The 4.0% increase was due primarily to an increase in volumes. For the nine-month period, sales totaled $2,547.1 million, a 5.2% increase compared with $2,420.7 million for the first nine months of 2013.

Adjusted EBITDA for the third quarter of 2014 increased by 1% to $114.6 million (15.0% of sales), compared with $113.4 million (15.5% of sales) for the third quarter of 2013. For the nine-month period, Adjusted EBITDA increased by 3.1% to $427.3 million (16.8% sales), compared with $414.5 million (17.1% sales) in the first nine months of 2013.

Chen Lichtenstein, President and CEO of Adama, commented, “We are very pleased with the growth in both sales and profits that our business has delivered in the third quarter, as well as over the year-to-date. Viewed together with the China Business, our combined profits show even higher growth. Also, during this quarter, we achieved regulatory approval in the U.S. for NIMITZ, a novel non-fumigant nematicide with notable user safety and effective application. The launch of this innovative solution is an important element in Adama’s quest to provide differentiated solutions that can simplify farmers’ lives.

The signing of the agreement to acquire our China Businesses is one of the most remarkable milestones in the Company’s history, and one which we believe will position us as the most competitive, differentiated, and largest off-patent crop protection provider worldwide. This is a significant strategic step towards building the only integrated China-Global player in the crop protection industry.”

Sales by regions

The quarter’s strongest sales growth was delivered by Europe, where revenues increased by 6.9% to $243.2 million from $227.5 million in the third quarter of 2013. This resulted from an increase in quantities sold and a rise in selling prices. Over the first nine months of 2014, revenues in Europe increased by 4.2% to $1,046.6 million from $1,004.1 million in the corresponding period of 2013.

Revenues in Latin America continued to grow strongly in the third quarter, increasing by 6.1% to $252.1 million from $237.6 million in the third quarter of 2013. Over the first nine months of 2014, revenues in Latin America increased by 10.3% to $557.9 million from $505.8 million in the corresponding period of 2013. The increase in sales in the third quarter and the first nine months of 2014 was mainly due to an increase in sales volumes.

Revenues for the quarter in North America were solid with an increase of 3.5% to $96.9 million from $93.6 million in the third quarter of 2013. Over the first nine months of 2014, revenues in North America increased by 5.3% to $410.8 million from $390.2 million in the corresponding period of 2013.

Revenues in Asia Pacific & Africa decreased by 1.8% to $144.1 million compared to $146.7 million in the comparable quarter of 2013, reflecting the weakening of currencies in the region. Over the first nine months of 2014, revenues in Asia Pacific & Africa increased by 3.0% to $452.0 million from $439.0 million in the corresponding period of 2013.

Revenues in Israel for the quarter decreased by 5.1% to $25.3 million from $26.6 million in the comparable quarter of 2013. Over the first nine months of 2014, revenues in Israel slightly decreased by 2% to $79.9 million from $81.6 million in the corresponding period of 2013.