In US dollar terms, sales in the region grew by 31.6% in the third quarter and by 36.3% in the first nine months of the year, compared to the corresponding periods last year, reflecting the impact of the strengthening of regional currencies, most notably the Australian Dollar and Chinese Renminbi.
India, Middle East & Africa: Sales grew by 2.9% in the quarter and by 10.9% in the first nine months of the year, in CER terms, compared to the corresponding periods last year.
The moderate growth in the region in the quarter was led by a noteworthy performance in South Africa, where the Company is benefiting from favorable cropping conditions and new product launches. However, growth in India is slowing as farmers missed some applications due to volatile weather conditions following a previously strong start to the monsoon season.
In US dollar terms, sales in the region grew by 4.6% in the quarter and by 12.2% in the first nine months of the year, compared to the corresponding periods last year, reflecting the impact of the strengthening of regional currencies compared to the USD, most notably the Israeli Shekel.
Table 3. Revenues by operating segment
Third quarter sales by segment
Q3 2021 Q3 2020
USD (m) % USD (m) %
Crop Protection 1,041 90.7% 881 90.0%
Intermediates and Ingredients 106 9.3% 98 10.0%
Total 1,147 100% 978 100%
Third quarter sales by product category
Q3 2021 Q3 2020
USD (m) % USD (m) %
Herbicides 441 38.4% 345 35.2%
Insecticides 360 31.4% 329 33.6%
Fungicides 241 21.0% 207 21.1%
Intermediates and Ingredients 106 9.3% 98 10.0%
Total 1,147 100% 978 100%
Note: the sales split by product category is provided for convenience purposes only and is not representative of the way the Company is managed or in which it makes its operational decisions.
Nine-month sales by segment
9M 2021 9M 2020
USD (m) % USD (m) %
Crop Protection 3,152 90.7% 2,706 90.6%
Intermediates and Ingredients 324 9.3% 280 9.4%
Total 3,476 100% 2,987 100%
Nine-month sales by product category
9M 2021 9M 2020
USD (m) % USD (m) %
Herbicides 1,390 40.0% 1,231 41.2%
Insecticides 1,066 30.7% 859 28.8%
Fungicides 696 20.0% 617 20.6%
Intermediates and Ingredients 324 9.3% 280 9.4%
Total 3,476 100% 2,987 100%
Note: the sales split by product category is provided for convenience purposes only and is not representative of the way the Company is managed or in which it makes its operational decisions.
Further Information
All filings of the Company, together with a presentation of the key financial highlights of the period, can be accessed through the Company website at www.adama.com.
About ADAMA
ADAMA Ltd. is a global leader in crop protection, providing solutions to farmers across the world to combat weeds, insects and disease. ADAMA has one of the widest and most diverse portfolios of active ingredients in the world, state-of-the art R&D, manufacturing and formulation facilities, together with a culture that empowers our people in markets around the world to listen to farmers and ideate from the field. This uniquely positions ADAMA to offer a vast array of distinctive mixtures, formulations and high-quality differentiated products, delivering solutions that meet local farmer and customer needs in over 100 countries globally. For more information, visit us at www.ADAMA.com and follow us on Twitter(R) at @ADAMAAgri.
Contact
Wayne Rudolph Zhujun Wang
Global Investor Relations China Investor Relations
Email: ir@adama.com Email: irchina@adama.com
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Abridged Adjusted Consolidated Financial Statements
The following abridged consolidated financial statements and notes have been prepared as described in Note 1 in this appendix. While prepared based on the principles of Chinese Accounting Standards (ASBE), they do not contain all of the information which either ASBE or IFRS would require for a complete set of financial statements, and should be read in conjunction with the consolidated financial statements of both ADAMA Ltd. and Adama Agricultural Solutions Ltd. as filed with the Shenzhen and Tel Aviv Stock Exchanges, respectively.
Relevant income statement items contained in this release are also presented on an "Adjusted" basis, which exclude items that are of a one-time or non-cash/non-operational nature that do not impact the ongoing performance of the business, and reflect the way the Company's management and the Board of Directors view the performance of the Company internally. The Company believes that excluding the effects of these items from its operating results allows management and investors to effectively compare the true underlying financial performance of its business from period to period and against its global peers.
Abridged Consolidated Income Statement for the Third Quarter
Q3 2021
USD Q3 2020 Q3 2021 Q3 2020
Adjusted([1]) (m) USD (m) RMB (m) RMB (m)
Revenues 1,147 978 7,425 6,769
Cost of Sales 829 691 5,366 4,785
Other costs 5 6 32 40
Gross profit 313 281 2,027 1,943
% of revenue 27.3% 28.7% 27.3% 28.7%
Selling & Distribution expenses 181 155 1,174 1,071
General & Administrative expenses 54 30 352 208
Research & Development expenses 18 17 114 116
Other operating expenses 1 2 5 11
Total operating expenses 254 203 1,645 1,406
% of revenue 22.2% 20.8% 22.2% 20.8%
Operating income (EBIT) 59 78 382 537
% of revenue 5.1% 7.9% 5.1% 7.9%
Financial expenses and investment
income 53 47 344 325
Income before taxes 6 31 38 212
Taxes on Income 36 2 233 14
Net Income -30 29 -195 198
Attributable to:
Non-controlling interest 0 0 0 0
Shareholders of the Company -30 29 -195 198
% of revenue -2.6% 2.9% -2.6% 2.9%
Adjustments -27 -26 -175 -177
Reported Net income attributable to the
shareholders of the Company -57 3 -371 20
% of revenue -5.0% 0.3% -5.0% 0.3%
Adjusted EBITDA 122 137 788 950
% of revenue 10.6% 14.0% 10.6% 14.0%
Adjusted EPS[2] -- Basic -0.0130 0.0120 -0.0839 0.0832
--
Diluted -0.0130 0.0120 -0.0839 0.0832
Reported EPS(2) -- Basic -0.0246 0.0012 -0.1592 0.0086
-- Diluted -0.0246 0.0012 -0.1592 0.0086
Abridged Consolidated Income Statement for the First Nine Months
9M 2021 9M 2020 9M 2021 9M 2020
Adjusted([3]) USD (m) USD (m) RMB (m) RMB (m)
Revenues 3,476 2,987 22,488 20,890
Cost of Sales 2,459 2,082 15,909 14,565
Other costs 17 16 110 111
Gross profit 1,000 888 6,469 6,213
% of revenue 28.8% 29.7% 28.8% 29.7%
Selling & Distribution expenses 545 465 3,528 3,253
General & Administrative expenses 125 89 811 624
Research & Development expenses 53 51 341 354
Other operating expenses -6 -4 -37 -28
Total operating expenses 718 601 4,643 4,203
% of revenue 20.6% 20.1% 20.6% 20.1%
Operating income (EBIT) 282 287 1,827 2,010
% of revenue 8.1% 9.6% 8.1% 9.6%
Financial expenses and investment
income 144 121 930 844
Income before taxes 139 166 897 1,166
Taxes on Income 52 42 338 298
Net Income 86 124 559 868
Attributable to:
Non-controlling interest 1 0 7 0
Shareholders of the Company 85 124 552 868
% of revenue 2.5% 4.1% 2.5% 4.2%
Adjustments -86 -92 -556 -643
Reported Net income attributable to