ADAMA agchem sales down 5% in Q1 2015

ADAMA Agricultural Solutions posted a decrease of 4.7% in sales to $866.7 million for the first quarter of 2015. In constant currency terms, sales for the first quarter of 2015 increased by 0.4% compared to the same period last year, with a more than 2% increase in quantities being partially offset by a small decline in prices. Factoring in the effect of the significant decline of the currencies in which the Company sells its products relative to the US Dollar. EBITDA for this quarter declined by 2.7% to $166.8 million.


Commenting on the results, Yang Xingqiang, Chairman of Adama's Board of Directors, said, "In this challenging time for the agricultural industry, we have seen both lower crop prices placing pressure on growers to reduce their spending, as well as the impact of significant currency headwinds in all markets. However, the strong joint effort by our entire team across the globe ensured that we were able to adjust to these adverse market conditions, allowing the Company to deliver excellent financial results. We remain well positioned to capitalize on our unique business to drive further growth going forward."

Chen Lichtenstein, President and CEO of Adama, commented, "Our resilient performance this quarter, which compares favorably to our sector, demonstrates the robustness of our diversified business and wide product offering focused on addressing farmers' needs across the globe. We generated an overall increase in volumes of over 2% during the first quarter, despite the difficult market conditions. We have also shown that, even in less than optimal times, our focus on thoughtful management of our business with an emphasis on profitability allowed the company to maintain and even improve its adjusted net income, operating profit and EBITDA margins, as well as improve significantly its cash flow. We continue to invest in our integrated platform and further enhance our portfolio of solutions we deliver to farmers worldwide."

Sales by regions



Europe: In constant currency terms, revenues in Europe during the first quarter of 2015 increased by 3.8% compared to the same period last year, reflecting an increase in quantities sold due to conducive weather conditions at the start of the season in Europe. USD revenues in Europe for the first quarter of 2015 totaled $456.8 million, compared with $467.2 million for the same period last year, reflecting the negative effect of foreign exchange rates.

North America: In constant currency terms, revenues in North America in this quarter increased by 1.6% year-over-year, largely reflecting an increase in quantities sold. Factoring in the effect of the depreciation of the Canadian dollar, USD revenues in North America for the first quarter of 2015 totaled $138.4 million, flat compared with the same period last year.

Latin America: In constant currency terms, revenues in Latin America during the first quarter of 2015 decreased by 6.2% compared to the same period last year, reflecting a decrease in prices which was partially offset by an increase in quantities sold. Incorporating the effect of the decline in local currencies, USD revenues in Latin America for the first quarter of 2015 totaled $123.9 million, compared with $136.2 million for the same period last year.

Asia Pacific: In constant currency terms, revenues in Asia Pacific during the first quarter of 2015 decreased by 9.8% compared to the same period last year, largely as a result of lower quantities. USD revenues in Asia Pacific for the first quarter of 2015 totaled $78.0 million, compared with $94.3m for the same period last year, reflecting the effect of the depreciation of the local currencies against the USD.

India, Middle East & Africa: In constant currency terms, revenues in India, Middle East & Africa during the first quarter of 2015 increased by 1.5% compared to the same period last year, reflecting an increase in quantities sold. Incorporating the effect of the decline in local currencies, USD revenues in India, Middle East & Africa for the first quarter of 2015 totaled $69.6 million, compared with $73.6m for the same period last year.