Makhteshim Agan sales up 7% in Q1 2013

Date:05-16-2013

Makhteshim Agan ‘s sales rose by 6.9% to $ 885.4 million in the first quarter ended Mar 31, 2013. The agrochemical sales were up by 7.2% to $ 836.5 million. The Company's sales in the first quarter of 2013, eliminating currency effects, increased by 8.4% compared with the corresponding quarter last year. These increases stemmed primarily from higher quantities and prices, which compensated for the price rises of the inputs that the Company purchases.

The sales were influenced by the following trends in the first quarter of 2013:stable weather conditions in most regions contributed to stabilization of prices and high prices of the agricultural commodities; the low level of stocks contributed to an increase in the Company's sales despite the dry weather conditions in Australia and the cold weather conditions in Europe at the end of the quarter;an ongoing rise in the prices of raw materials, together with the low stock levels in the market, led to a rise in product prices in the crop protection industry, which was of assistance, inter alia, to the Company for raising its prices.

Total earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 3.3% to $ 168.5 million, EBIT rose by 4.9% to $ 131.1 million. Gross profit was up by 2.7% to$ 286.9 million, due to higher volumes ,higher prices and a better product mix, which compensated for the rise in the prices of the Company's inputs. Net income rose slightly 1% to$ 90.2 million. Margins dropped to 33.3% from 34.6 % on negative exchange rate effects.

Makhteshim Agan’s sales results ($ million)
Q1 ended Mar. 31	Q1 2013	Q1 2012	% change
Sales	885.4	828.0	6.9%
Gross profit	294.8	286.9	2.7%
Agrochemicals	836.5	780.0	7.2%
R&D, selling and G&A expenses	163.7	161.9	1.1%
EBITDA1	168.5	163.2	3.3%
EBIT2	131.1	125.0	4.9%
1earnings before interest, tax, depreciation and amortization; 2earnings before interest and tax.

Sales by regions

European sales in the first quarter of 2013 were up by 2.9% to $ 436.0 million, due to higher  prices and quantities, despite the cold weather conditions at the end of the quarter. The effective level of exchange rates in the first quarter of 2013 influenced the revenues.

Latin America sales rose by19.5% to $ 128.3 million, while North America sales increased by10.5% to $ 145.8 million.Higher quantities and prices are main growth factors in both regions. 

Makhteshim Agan’s sales results by regions ($ million)
Q1ended Mar. 31	Q1 2013	Q1 2012	% change
European	436.0	423.5	2.9%
Latin America	128.3	107.4	19.5%
North America	145.8	131.9	10.5%
Asia Pacific and Africa	148.1	141.2	4.9%
Israel	27.2	24.0	13.4%
Total	885.4	828.0	6.9%

Asia Pacific and Africa sales boosted by 4.9% to $ 148.1 million, due to higher volumes and prices, despite the decrease in sales in Australia owing to dry weather conditions.

Israel sales rose by 13.4% to $ 27.2 million on higher volumes.