ADAMA Reports Second Quarter and First Half Year 2025 Results
Year-over-year quarterly sales grew for first time since Q3 2022 with improvements in key financial metrics for both the quarter and half year periods

Second Quarter 2025 Highlights:
- Sales up 5% (6% in RMB) to
$1,092 million , driven by an 8% increase in volume, which more than offset a 3% decrease in prices - Adjusted gross profit up 18% to
$318 million , representing an improvement of gross margin to 29.1% from 25.8% last year, reflecting the benefits of lower costs and higher volumes - Adjusted EBITDA up 25% to
$150 million , representing an improvement of EBITDA margin to 13.7% from 11.5% last year - Adjusted net income turned positive to $6 million from a loss of $61 million last year; Reported net loss improved by
$62 million to $32 million compared to $94 million last year
First Half Year 2025 Highlights:
- Stable Sales (0% in USD, 1% in RMB) of
$2,091 million , mainly reflecting volume growth of 4% offset by a 3% decrease in prices - Adjusted gross profit up 11% to
$620 million , representing an improvement of gross margin to 29.7% from 26.5% last year, reflecting the benefits of lower costs and higher volumes - Adjusted EBITDA up 23% to
$310 million , representing an improvement of EBITDA margin to 14.8% from 12.0% last year - Adjusted net income turned positive to $49 million compared to a loss of $71 million last year; Reported net loss improved by
$115 million to $11 million compared to $126 million last year - Operating cash flow of $242 million generated vs. $243 million last year
- Free cash flow increased to $90 million vs. $51 million last year
Table 1. Financial Performance Summary
USD (m) | As Reported | Adjustments | Adjusted | ||||||
Q2 2025 | Q2 2024 | % Change | Q2 2025 | Q2 2024 | Q2 2025 | Q2 2024 | % Change | ||
Revenues | 1,092 | 1,041 | 5 % | - | - | 1,092 | 1,041 | 5 % | |
Gross profit | 284 | 227 | 25 % | 33 | 41 | 318 | 269 | 18 % | |
% of sales | 26.0 % | 21.8 % | 29.1 % | 25.8 % | |||||
Operating income (loss) (EBIT) | 55 | (16) | 29 | 69 | 85 | 52 | 63 % | ||
% of sales | 5.1 % | (1.6 %) | 7.8 % | 5.0 % | |||||
Income (loss) before taxes | (36) | (59) | 39 % | 39 | 42 | 3 | (17) | ||
% of sales | (3.3 %) | (5.7 %) | 0.3 % | (1.7 %) | |||||
Net income (loss) | (32) | (94) | 66 % | 38 | 33 | 6 | (61) | ||
% of sales | (2.9 %) | (9.0 %) | 0.5 % | (5.8 %) | |||||
EPS | |||||||||
- USD | (0.0138) | (0.0403) | 0.0024 | (0.0261) | |||||
- RMB | (0.0994) | (0.2864) | 0.0171 | (0.1855) | |||||
EBITDA | 130 | 76 | 71 % | 20 | 44 | 150 | 120 | 25 % | |
% of sales | 11.9 % | 7.3 % | 13.7 % | 11.5 % | |||||
USD (m) | As Reported | Adjustments | Adjusted | ||||||
H1 2025 | H1 2024 | % Change | H1 2025 | H1 2024 | H1 2025 | H1 2024 | % Change | ||
Revenues | 2,091 | 2,098 | 0 % | - | - | 2,091 | 2,098 | 0 % | |
Gross profit | 556 | 484 | 15 % | 65 | 73 | 620 | 557 | 11 % | |
% of sales | 26.6 % | 23.0 % | 29.7 % | 26.5 % | |||||
Operating income (EBIT) | 125 | 34 | 264 % | 55 | 89 | 181 | 124 | 46 % | |
% of sales | 6.0 % | 1.6 % | 8.6 % | 5.9 % | |||||
Income (loss) before taxes | (17) | (80) | 78 % | 62 | 65 | 45 | (16) | ||
% of sales | (0.8 %) | (3.8 %) | 2.1 % | (0.7 %) | |||||
Net income (loss) | (11) | (126) | 91 % | 61 | 55 | 49 | (71) | ||
% of sales | (0.5 %) | (6 %) | 2.4 % | (3.4 %) | |||||
EPS | |||||||||
- USD | (0.0048) | (0.0541) | 0.0212 | (0.0303) | |||||
- RMB | (0.0345) | (0.3841) | 0.1521 | (0.2152) | |||||
EBITDA | 273 | 196 | 39 % | 36 | 55 | 310 | 252 | 23 % | |
% of sales | 13.1 % | 9.4 % | 14.8 % | 12.0 % | |||||
Notes:
"As Reported" denotes the Company's financial statements according to the Accounting Standards for Business Enterprises and the implementation guidance, interpretations and other relevant provisions issued or revised subsequently by the Chinese Ministry of Finance (the "MoF) (collectively referred to as "ASBE"). Note that in the reported financial statements, according to the ASBE guidelines [IAS 37], certain items (specifically certain transportation costs and certain idleness charges) are classified under COGS. Please see the appendix to this release for further information.
Relevant income statement items contained in this release are also presented on an "Adjusted" basis, which exclude items that are of a transitory 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. A detailed summary of these adjustments appears in the appendix below.
The number of shares used to calculate both basic and diluted earnings per share in both Q2 and H1 2025 and 2024 is 2,329.8 million shares.
In this table and all tables in this release numbers may not sum due to rounding.
The General Crop Protection (CP) Market Environment
In H1 2025 channel inventory returned to pre-pandemic levels in most countries, allowing crop protection demand recovery. Pricing pressure remains high, driven by production over-capacity of active ingredients. Crop commodity prices remain stably low and coupled with the high-interest rate environment, farmer profitability remains tight leading to just-in-time purchasing patterns.[1]
Portfolio Development Update
In Q2 2025, ADAMA continued to register and launch multiple new products in markets across the globe, adding on to its differentiated product portfolio. As part of the Fight Forward transformation plan, the Company is focused on improving its overall portfolio mix, particularly by targeting the Value Innovation segment, with the intent of improving value delivered to all stakeholders.
In Q2 2025, launches of differentiated products included:
- Brevis™ SC (USA): A fruit thinner for managing flowering and fruiting in pome fruits such as apples and pears.
- Prothioconazole-Based Portfolio Expansion including Maxentis® in
Argentina and Forapro® inLatvia
- Upturn® (
India ): Officially launched following its soft introduction in 2024, this blend of Fomesafen and Propaquizafop offers broad-spectrum control of hard-to-kill weeds.
- Jumbo® (
Brazil ): A herbicide combining Sulfentrazone and Tebuthiuron, offering broad-spectrum, high-efficiency weed control in sugarcane.
- Temper™ More (
USA ): A herbicide developed with ADAMA's SESGAMA™ technology, combining Glufosinate-ammonium and S-metolachlor for dual-action burndown and residual control of grasses and small-seeded broadleaf weeds.
Notable differentiated product registrations during Q2 2025 included:
- COSAYR®: Chlorantraniliprole suspension registered in
Croatia ,Germany , andSlovakia ; InCzech Republic registered under the name RYNO-A®.
- Prothioconazole-Based Formulations Registrations MAGANIC®, AVASTEL® VAZANTI® in several European countries.
- MAXENTIS® (Azoxystrobin + Prothioconazole SC) in
Bulgaria ,Canada , andDenmark , and inPoland under the name BODEGA®
- FORAPRO® (Fenpropidin + Prothioconazole EC) –
Latvia
- DOMAGO® (
China ): A formulation combining Penoxsulam and Pretilachlor for effective weed control in rice.
- MATTOK® (
Mexico ): A unique combination of Azoxystrobin and Tebuconazole enriched with a biostimulant, for fungal disease control and boosting plant health and crop quality in cereals, cotton, and corn.
- RAVARI® (
Mexico ): A combination of Chlorantraniliprole and Novaluron offering superior control of Spodoptera and other caterpillars, with extended residual protection for row crop growers.
- FERALLA®: The active substance FERALLA®, was approved in the EU as a low-risk active substance.
In addition, Gilboa® , a proprietary fungicide, was recognized by the Fungicide Resistance Action Committee (
ESG
In July, ADAMA achieved a fifth consecutive year of improved ESG performance ratings from EcoVadis, a leading global sustainability assessment platform. The Company placed among the top 23% of companies in its sector, and in the top 14% for environmental performance. This recognition reflects ADAMA's ongoing commitment to responsible business practices and continuous improvement across key ESG areas.
Geopolitical Situation
ADAMA is headquartered and has three manufacturing sites in
Regarding US tariff policies, ADAMA's management appointed a dedicated task force to analyze implications of US tariff policies and to closely monitor the situation and the potential impact on its global network.
'Fight Forward' Transformation Plan
In early 2024, ADAMA launched 'Fight Forward', a strategic transformation plan aimed at gradually delivering improved profit and cash targets over a three-year period. The plan aims to optimize financial management and to streamline ADAMA's operating model in order to increase focus on the Value Innovation segment in which differentiated, high-impact solutions are developed to deliver greater value to farmers.
Financial Highlights
Revenues in the second quarter increased by approximately 5% (6% in RMB; 5% in CER) to
Supported by the growth of revenues in the second quarter, ADAMA reported flat sales for the first half of 2025 (0% in USD, 1% in RMB, 1% in CER), compared to the first half of 2024. The stabilization of revenues in the first half was driven by volume growth of 4% offsetting a decrease in prices of 3%.
Table 2. Regional Sales Performance
Q2 2025 $m | Q2 2024 $m | Change USD | Change CER | H1 2025 $m | H1 2024 $m | Change USD | Change CER | |||
314 | 318 | (1 %) | (4 %) | 670 | 695 | (4 %) | (4 %) | |||
276 | 223 | 24 % | 25 % | 495 | 414 | 19 % | 20 % | |||
216 | 209 | 3 % | 7 % | 363 | 400 | (9 %) | (4 %) | |||
286 | 292 | (2 %) | (1 %) | 564 | 590 | (4 %) | (3 %) | |||
Of which | 143 | 121 | 18 % | 18 % | 309 | 275 | 12 % | 13 % | ||
Total | 1,092 | 1,041 | 5 % | 5 % | 2,091 | 2,098 | 0 % | 1 % |
Notes:
‒ CER: Constant Exchange Rates
‒ As part of ADAMA's business optimization program, on
‒ Numbers may not sum due to rounding
In
Reported gross profit in the second quarter increased 25% to
Adjustments to reported results: The adjusted gross profit mainly includes reclassification of inventory impairment, taxes and surcharge, and excludes certain transportation costs (classified under operating expenses) and the remediation costs by a wholly-owned subsidiary for its plant in
Adjusted gross profit in the second quarter increased 18% to $318 million (gross margin of 29.1%) from
The higher adjusted gross profit and margin in the quarter and half year mainly reflected the positive impacts of higher volume as well as lower costs due to improved operational efficiency and lower costs of inventory sold, more than compensating for lower prices.
Operating expenses reported in the second quarter were
Adjustments to reported results: Please refer to the explanation above regarding adjustments to the gross profit in respect to certain transportation costs, taxes and surcharges and inventory impairment. Non-operating income and expenses are also reclassified into adjusted operating expenses.
The Company recorded certain non-operational items within its reported operating expenses amounting to
Adjusted operating expenses in the second quarter were $233 million (21.3% of sales), compared to $216 million (20.8% of sales) last year, and were $440 million (21.0% of sales) in the half year period compared to
In the first half, there was positive impact in adjusted operating expenses following implementation of the Fight Forward plan and the positive impacts of exchange rates. These benefits were offset mainly by expected credit loss in Q2 in LATAM due to liquidity issues of some local distributors.
Reported operating income in Q2 was $55 million (5.1% of sales) compared to a loss of
Adjusted operating income in Q2 increased 63% to
Reported EBITDA in Q2 increased 71% to $130 million (11.9% of sales) from $76 million (7.3% of sales) last year, and increased 39% to
Adjusted EBITDA in Q2 increased 25% to $150 million (13.7% of sales) from $120 million (11.5% of sales) last year, and increased 23% to
Adjusted financial expenses were
The higher financial expenses in the second quarter were largely attributable to higher hedging costs on exchange rates in LATAM, primarily
As part of strengthening debt structure, a subsidiary of the Company repurchased a significant part of its bond principal in the second quarter for the purpose of improving financing structure and efficiency. As the repurchase was completed late in the quarter, the impacts on improving the financial costs were minor during the reporting periods.
Adjusted taxes on income in the second quarter were an income of $3 million, compared to expenses of
In the 2024 periods despite reaching losses before tax, the Company recorded tax expenses mainly because (1) the losses were primarily incurred by subsidiaries with relatively lower tax rates, while some of them did not create deferred tax assets on the losses and on the other hand, the subsidiaries that generated profit have a higher tax rate, and (2) non-cash impact of the weaker BRL.
Net loss reported in the second quarter was narrowed by 66% to $32 million from $94 million last year, and narrowed by 91% to
After reflecting the impact of the aforementioned extraordinary and non-operational charges, adjusted net income in the second quarter turned positive to $6 million from a loss of $61 million last year, and in the first half to $49 million from a loss of $71 million last year.
Trade working capital as of
Cash Flow: Operating cash flow of $271 million and $242 million was generated in the second quarter and first half year periods respectively, compared to $347 million and $243 million generated in the corresponding periods last year. The lower operating cash flow generated in the second quarter was mainly due to higher procurement payment in preparation to capture growth momentum, which exceeded the positive impacts from improved business earnings. The dynamics in the half-year period reflected an improvement in collection, offsetting higher outflow due to higher procurement payments.
Net cash used in investing activities was $52 million in the second quarter and $88 million in the first half period, compared to
Free cash flow of $176 million was generated in the second quarter and
Table 3. Revenues by operating segment
Sales by segment | ||||||||
Q2 2025 USD (m) | % | Q2 2024 USD (m) | % | H1 2025 USD (m) | % | H1 2024 USD (m) | % | |
Crop Protection | 998 | 91 % | 945 | 91 % | 1,904 | 91 % | 1,906 | 91 % |
Intermediates and Ingredients | 94 | 9 % | 96 | 9 % | 187 | 9 % | 192 | 9 % |
Total | 1,092 | 100 % | 1,041 | 100 % | 2,091 | 100 % | 2,098 | 100 % |
Sales by product category | ||||||||
Q2 2025 USD (m) | % | Q2 2024 USD (m) | % | H1 2025 USD (m) | % | H1 2024 USD (m) | % | |
Herbicides | 474 | 43 % | 414 | 40 % | 919 | 44 % | 868 | 41 % |
Insecticides | 302 | 28 % | 304 | 29 % | 546 | 26 % | 594 | 28 % |
Fungicides | 222 | 20 % | 227 | 22 % | 439 | 21 % | 444 | 21 % |
Intermediates and Ingredients | 94 | 9 % | 96 | 9 % | 187 | 9 % | 192 | 9 % |
Total | 1,092 | 100 % | 1,041 | 100 % | 2,091 | 100 % | 2,098 | 100 % |
Notes:
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.
Numbers may not sum due to rounding.
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 practical solutions to farmers across the world to combat weeds, insects and disease. Our culture empowers ADAMA's people to actively listen to farmers and ideate from the field. ADAMA's diverse portfolio of existing active ingredients, coupled with its leading formulation capabilities and proprietary formulation technology platforms, uniquely position the company to develop high-quality, innovative and sustainable products, to address the many challenges farmers and customers face today. ADAMA serves customers in dozens of countries globally, with direct presence in all top 20 markets. For more information, visit us at www.ADAMA.com.
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
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 Second Quarter | ||||
Adjusted[2] | Q2 2025 USD (m) | Q2 2024 USD (m) | Q2 2025 RMB (m) | Q2 2024 RMB (m) |
Revenues | 1,092 | 1,041 | 7,851 | 7,401 |
Cost of Sales | 765 | 769 | 5,503 | 5,466 |
Other costs | 9 | 3 | 64 | 26 |
Gross profit | 318 | 269 | 2,285 | 1,910 |
% of revenue | 29.1 % | 25.8 % | 29.1 % | 25.8 % |
Selling & Distribution expenses | 166 | 169 | 1,196 | 1,203 |
General & Administrative expenses | 39 | 33 | 279 | 233 |
Research & Development expenses | 16 | 15 | 113 | 106 |
Other operating expenses (income) | 12 | (1) | 86 | (4) |
Total operating expenses | 233 | 216 | 1,674 | 1,538 |
% of revenue | 21.3 % | 20.8 % | 21.3 % | 20.8 % |
Operating income (EBIT) | 85 | 52 | 611 | 371 |
% of revenue | 7.8 % | 5.0 % | 7.8 % | 5.0 % |
Financial expenses | 82 | 70 | 589 | 495 |
Income (loss) before taxes | 3 | (17) | 22 | (123) |
Taxes on Income | (3) | 43 | (18) | 309 |
Net income (loss) | 6 | (61) | 40 | (432) |
% of revenue | 0.5 % | (5.8 %) | 0.5 % | (5.8 %) |
Adjustments | 38 | 33 | 271 | 235 |
Reported net loss | (32) | (94) | (232) | (667) |
% of revenue | (2.9 %) | (9 %) | (2.9 %) | (9 %) |
Adjusted EBITDA | 150 | 120 | 1,078 | 851 |
% of revenue | 13.7 % | 11.5 % | 13.7 % | 11.5 % |
Adjusted EPS[3] – Basic | 0.0024 | (0.0261) | 0.0171 | (0.1855) |
– Diluted | 0.0024 | (0.0261) | 0.0171 | (0.1855) |
Reported EPS[2] – Basic | (0.0138) | (0.0403) | (0.0994) | (0.2864) |
– Diluted | (0.0138) | (0.0403) | (0.0994) | (0.2864) |
Abridged Consolidated Income Statement for the First Half of 2025 | ||||
Adjusted[4] | H1 2025 USD (m) | H1 2024 USD (m) | H1 2025 RMB (m) | H1 2024 RMB (m) |
Revenues | 2,091 | 2,098 | 15,024 | 14,910 |
Cost of Sales | 1,459 | 1,536 | 10,484 | 10,915 |
Other costs | 12 | 6 | 83 | 39 |
Gross profit | 620 | 557 | 4,457 | 3,956 |
% of revenue | 29.7 % | 26.5 % | 29.7 % | 26.5 % |
Selling & Distribution expenses | 322 | 338 | 2,311 | 2,401 |
General & Administrative expenses | 76 | 69 | 546 | 487 |
Research & Development expenses | 30 | 31 | 216 | 218 |
Other operating expenses (income) | 12 | (4) | 88 | (30) |
Total operating expenses | 440 | 433 | 3,161 | 3,076 |
% of revenue | 21.0 % | 20.6 % | 21.0 % | 20.6 % |
Operating income (EBIT) | 181 | 124 | 1,297 | 880 |
% of revenue | 8.6 % | 5.9 % | 8.6 % | 5.9 % |
Financial expenses | 136 | 139 | 977 | 990 |
Income (loss) before taxes | 45 | (16) | 320 | (110) |
Taxes on Income | (5) | 55 | -34 | 391 |
Net income (loss) | 49 | (71) | 354 | (501) |
% of revenue | 2.4 % | (3.4 %) | 2.4 % | (3.4 %) |
Adjustments | 61 | 55 | 435 | 393 |
Reported net loss | (11) | (126) | (80) | (895) |
% of revenue | (0.5 %) | (6 %) | (0.5 %) | (6 %) |
Adjusted EBITDA | 310 | 252 | 2,226 | 1,789 |
% of revenue | 14.8 % | 12.0 % | 14.8 % | 12.0 % |
Adjusted EPS[5] – Basic | 0.0212 | (0.0303) | 0.1521 | (0.2152) |
– Diluted | 0.0212 | (0.0303) | 0.1521 | (0.2152) |
Reported EPS[4] – Basic | (0.0048) | (0.0541) | (0.0345) | (0.3841) |
– Diluted | (0.0048) | (0.0541) | (0.0345) | (0.3841) |
Abridged Consolidated Balance Sheet | ||||
2025 USD (m) | 2024 USD (m) | 2025 RMB (m) | 2024 RMB (m) | |
Assets | ||||
Current assets: | ||||
Cash at bank and on hand | 489 | 561 | 3,497 | 3,995 |
Bills and accounts receivable | 1,249 | 1,314 | 8,942 | 9,368 |
Inventories | 1,622 | 1,728 | 11,613 | 12,316 |
Other current assets, receivables and prepaid expenses | 355 | 279 | 2,542 | 1,986 |
Total current assets | 3,715 | 3,882 | 26,595 | 27,665 |
Non-current assets: | ||||
Fixed assets, net | 1,610 | 1,754 | 11,522 | 12,499 |
Rights of use assets | 74 | 81 | 528 | 576 |
Intangible assets, net | 1,346 | 1,407 | 9,635 | 10,027 |
Deferred tax assets | 212 | 203 | 1,518 | 1,449 |
Other non-current assets | 127 | 89 | 906 | 638 |
Total non-current assets | 3,368 | 3,534 | 24,109 | 25,189 |
Total assets | 7,083 | 7,416 | 50,703 | 52,854 |
Liabilities | ||||
Current liabilities: | ||||
Loans and credit from banks and other lenders | 1,187 | 928 | 8,498 | 6,611 |
Bills and accounts payable | 831 | 761 | 5,946 | 5,424 |
Other current liabilities | 856 | 794 | 6,132 | 5,659 |
Total current liabilities | 2,873 | 2,483 | 20,576 | 17,695 |
Long-term liabilities: | ||||
Loans and credit from banks and other lenders | 244 | 406 | 1,746 | 2,892 |
Debentures | 719 | 960 | 5,147 | 6,844 |
Deferred tax liabilities | 36 | 41 | 251 | 292 |
Employee benefits | 77 | 80 | 542 | 572 |
Other long-term liabilities | 494 | 502 | 3,536 | 3,578 |
Total long-term liabilities | 1,569 | 1,989 | 11,222 | 14,177 |
Total liabilities | 4,442 | 4,472 | 31,798 | 31,872 |
Equity | ||||
Total equity | 2,641 | 2,944 | 18,905 | 20,982 |
Total liabilities and equity | 7,083 | 7,416 | 50,703 | 52,854 |
Numbers may not sum due to rounding
Abridged Consolidated Cash Flow Statement for the Second Quarter of 2025 | ||||
Q2 2025 USD (m) | Q2 2024 USD (m) | Q2 2025 RMB (m) | Q2 2024 RMB (m) | |
Cash flow from operating activities: | ||||
Cash flow from operating activities | 271 | 347 | 1,946 | 2,466 |
Cash flow from operating activities | 271 | 347 | 1,946 | 2,466 |
Investing activities: | ||||
Acquisitions of fixed and intangible assets | (38) | (47) | (273) | (332) |
Net cash received from disposal of fixed assets, intangible assets and others | 1 | 4 | 4 | 27 |
Payment in respect of business combination | (8) | - | (56) | - |
Other investing activities | (7) | (5) | (48) | (37) |
Cash flow used for investing activities | (52) | (48) | (373) | (342) |
Financing activities: | ||||
Receipt of loans from banks and other lenders | 200 | 21 | 1,435 | 151 |
Repayment of loans from banks and other lenders | (366) | (198) | (2,635) | (1,410) |
Interest payment and other | (53) | (59) | (381) | (419) |
Other financing activities | (43) | (26) | (309) | (184) |
Cash flow used for financing activities | (263) | (262) | (1,890) | (1,861) |
Effects of exchange rate movement on cash and cash equivalents | 1 | 2 | (3) | 29 |
Net change in cash and cash equivalents | (43) | 39 | (321) | 292 |
Cash and cash equivalents at the beginning of the period | 507 | 519 | 3,637 | 3,679 |
Cash and cash equivalents at the end of the period | 463 | 557 | 3,316 | 3,971 |
Free Cash Flow | 176 | 245 | 1,266 | 1,740 |
Abridged Consolidated Cash Flow Statement for the First Half of 2025 | ||||
H1 2025 USD (m) | H1 2024 USD (m) | H1 2025 RMB (m) | H1 2024 RMB (m) | |
Cash flow from operating activities: | ||||
Cash flow from operating activities | 242 | 243 | 1,739 | 1,731 |
Cash flow from operating activities | 242 | 243 | 1,739 | 1,731 |
Investing activities: | ||||
Acquisitions of fixed and intangible assets | (82) | (113) | (590) | (800) |
Net cash received from disposal of fixed assets, intangible assets and others | 2 | 4 | 17 | 30 |
Payment in respect of business combination | (8) | - | (56) | - |
Other investing activities | (1) | (6) | (6) | (45) |
Cash flow used for investing activities | (88) | (115) | (635) | (815) |
Financing activities: | ||||
Receipt of loans from banks and other lenders | 336 | 193 | 2,415 | 1,369 |
Repayment of loans from banks and other lenders | (432) | (393) | (3,107) | (2,792) |
Interest payments and other | (73) | (83) | (527) | (587) |
Other financing activities | (20) | 23 | (147) | 165 |
Cash flow used for financing activities | (190) | (260) | (1,367) | (1,845) |
Effects of exchange rate movement on cash and cash equivalents | 1 | 2 | (5) | 42 |
Net change in cash and cash equivalents | (35) | (129) | (268) | (886) |
Cash and cash equivalents at the beginning of the period | 499 | 686 | 3,584 | 4,857 |
Cash and cash equivalents at the end of the period | 463 | 557 | 3,316 | 3,971 |
Free Cash Flow | 90 | 51 | 651 | 364 |
Numbers may not sum due to rounding
Notes to Abridged Consolidated Financial Statements
Note 1: Basis of preparation
Basis of presentation and accounting policies: The abridged consolidated financial statements for the quarters ended June 30, 2025 and 2024 incorporate the financial statements of ADAMA Ltd. and of all of its subsidiaries (the "Company"), including Adama Agricultural Solutions Ltd. ("Solutions") and its subsidiaries.
The Company has adopted the Accounting Standards for Business Enterprises (ASBE) issued by the Ministry of Finance (the "MoF") and the implementation guidance, interpretations and other relevant provisions issued or revised subsequently by the MoF (collectively referred to as "ASBE").
The abridged consolidated financial statements contained in this release are presented in both Chinese Renminbi (RMB), as the Company's shares are traded on the Shenzhen Stock Exchange, as well as in
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimated.
Note 2: Abridged Financial Statements
For ease of use, the financial statements shown in this release have been abridged as follows:
Abridged Consolidated Income Statement:
- "Gross profit" in this release is revenue less costs of goods sold, taxes and surcharges, inventory impairment and other idleness charges (in addition to those already included in costs of goods sold); part of the idleness charges is removed in the Adjusted financial statements
- "Other operating expenses" includes impairment losses (not including inventory impairment); gain (loss) from disposal of assets and non-operating income and expenses
- "Operating expenses" in this release differ from those in the formally reported financial statements in that certain transportation costs have been reclassified from COGS to Operating Expenses.
- "Financial expenses" includes net financing expenses and gains/losses from changes in fair value.
Abridged Consolidated Balance Sheet:
- "Other current assets, receivables and prepaid expenses" includes financial assets held for trading; financial assets in respect of derivatives; prepayments; other receivables; and other current assets
- "Fixed assets, net" includes fixed assets and construction in progress
- "Intangible assets, net" includes intangible assets and goodwill
- "Other non-current assets" includes other equity investments; long-term equity investments; long-term receivables; investment property; and other non-current assets
- "Loans and credit from banks and other lenders" includes short-term loans and non-current liabilities due within one year
- "Other current liabilities" includes financial liabilities in respect of derivatives; payables for employee benefits, taxes, interest, dividends and others; advances from customers and other current liabilities
- "Other long-term liabilities" includes long-term payables, provisions, deferred income and other non-current liabilities
Income Statement Adjustments | ||||||
Q2 2025 USD (m) | Q2 2024 USD (m) | Q2 2025 RMB (m) | Q2 2024 RMB (m) | |||
Reported Net Loss | (32) | (94) | (232) | (667) | ||
Adjustments to COGS & Operating Expenses: | ||||||
1. Amortization of acquisition-related PPA and other acquisition related costs | 4 | 4 | 26 | 28 | ||
2. Amortization of Transfer assets received and written-up due to 2017 ChemChina-Syngenta transaction (non-cash) | 5 | 5 | 39 | 36 | ||
3. Cleanup and remediation costs for plants in | 7 | 11 | 48 | 78 | ||
4. ASBEs classifications COGS impact | (26) | (29) | (190) | (208) | ||
5. ASBEs classifications OPEX impact | 26 | 29 | 190 | 208 | ||
6. Restructuring and advisory costs | 13 | 4 | 94 | 26 | ||
7. Other | 1 | 1 | 5 | 6 | ||
8. Provisions such as legal claims, registration impairment and update of registration depreciation | - | 44 | - | 312 | ||
Total Adjustments to Operating Income (EBIT) | 29 | 69 | 212 | 488 | ||
Total Adjustments to EBITDA | 20 | 44 | 144 | 312 | ||
Adjustments to Financing Expenses: | ||||||
9. Non-cash adjustment related to put options revaluation | 0 | (34) | (3) | (238) | ||
10. Repurchase of debentures by a controlled subsidiary | 9 | - | 68 | - | ||
12. Other financing expenses | 0 | 7 | 3 | 48 | ||
Adjustments to Taxes: | ||||||
Taxes impact | (1) | (9) | (8) | (62) | ||
Total adjustments to Net Loss | 38 | 33 | 271 | 235 | ||
Adjusted Net Income (Loss) | 6 | (61) | 40 | (432) | ||
H1 2025 USD (m) | H1 2024 USD (m) | H1 2025 RMB (m) | H1 2024 RMB (m) | |
Reported Net loss | (11) | (126) | (80) | (895) |
Adjustments to COGS & Operating Expenses: | ||||
1. Amortization of acquisition-related PPA and other acquisition related costs | 7 | 8 | 52 | 54 |
2. Amortization of Transfer assets received and written-up due to 2017 ChemChina-Syngenta transaction (non-cash) | 11 | 10 | 78 | 72 |
3. Cleanup and remediation costs for plants in | 7 | 11 | 48 | 78 |
4. ASBEs classifications COGS impact | (56) | (59) | (405) | (421) |
5. ASBEs classifications OPEX impact | 56 | 59 | 405 | 421 |
6. Restructuring and advisory costs | 29 | 15 | 209 | 107 |
7. Other | 1 | 2 | 10 | 12 |
8. Provisions such as legal claims, registration impairment and update of registration depreciation | - | 44 | - | 312 |
Total Adjustments to Operating Income (EBIT) | 55 | 89 | 397 | 635 |
Total Adjustments to EBITDA | 36 | 55 | 262 | 394 |
Adjustments to Financing Expenses: | ||||
9. Non-cash adjustment related to put option revaluation | 3 | (33) | 20 | (233) |
10. Repurchase of debentures by a controlled subsidiary | 9 | - | 68 | - |
11. Arbitration decision related to a controlled subsidiary | (4) | - | (32) | - |
12. Other financing expenses | (1) | 8 | (8) | 59 |
Adjustments to Taxes: | ||||
Taxes impact | (2) | (10) | (11) | (68) |
Total adjustments to Net loss | 61 | 55 | 435 | 393 |
Adjusted Net Income (Loss) | 49 | (71) | 354 | (501) |
Notes:
1. Amortization of acquisition-related PPA and other acquisition related costs: Related mainly to the non-cash amortization of intangible assets created as part of the Purchase Price Allocation (PPA) on acquisitions, with no impact on the ongoing performance of the companies acquired, as well as other M&A-related costs.
2. Amortization of Transfer assets received and written-up due to 2017 ChemChina-Syngenta transaction (non-cash): The proceeds from the Divestment of crop protection products in connection with the approval by the EU Commission of the acquisition of Syngenta by ChemChina, net of taxes and transaction expenses, were paid to Syngenta in return for the transfer of a portfolio of products in
3. Cleanup and remediation costs for plants in
4. & 5. ASBEs classifications COGS impact: according to the ASBE guidelines [IAS 37], certain items (specifically certain transportation costs) are classified under COGS.
6. Restructuring and advisory costs: The Company initiated its Fight Forward transformation plan in early 2024. Part of the plan includes restructuring its organizational structure, workforce and managerial processes, and as a result thereof, the Company recorded restructuring and advisory costs.
7. Other: Mainly attributable to accelerated depreciation associated with facilities upgrade.
8. Provisions such as legal claims, registration impairment and update of registration depreciation: Legal claims related to product liabilities was settled and incurred expenses in 2024. Registration impairment and update of registration depreciation is mainly related to the management's strategic decision in 2024 to increase focus on products in line with the optimization of the Company's portfolio, and hence to focus on the quality of business to achieve a better sales mix of higher margin products.
9. Non-cash adjustment related to put options revaluation: expenses/income due to revaluation of put options attributed to minority stake in subsidiaries
10. Repurchase of debentures by a controlled subsidiary: As part of strengthening its debt structure, a subsidiary of the Company repurchased a significant part of its bond principal in the second quarter for the purpose of improving its long-term financing structure and efficiency. A loss was recorded due to the premium between the buyback price and its issuance price. As the repurchase was completed late in the quarter, the impacts on improving the financial costs were minor during the reporting periods.
11. Arbitration decision related to a controlled subsidiary: An arbitration case related to a controlled subsidiary incurred a one-time income.
Exchange Rate Data for the Company's Principal Functional Currencies | |||||||||||
Q2 Average | H1 Average | ||||||||||
2025 | 2024 | Change | 2025 | 2024 | Change | 2025 | 2024 | Change | |||
EUR/USD | 1.173 | 1.069 | 9.67 % | 1.134 | 1.08 | 5.41 % | 1.091 | 1.081 | 0.96 % | ||
USD/BRL | 5.457 | 5.559 | 1.83 % | 5.666 | 5.22 | -8.61 % | 5.756 | 5.085 | -13.19 % | ||
USD/PLN | 3.616 | 4.032 | 10.31 % | 3.757 | 4.00 | 6.01 % | 3.877 | 3.994 | 2.94 % | ||
USD/ZAR | 17.794 | 18.448 | 3.55 % | 18.285 | 18.58 | 1.57 % | 18.388 | 18.736 | 1.86 % | ||
AUD/USD | 0.653 | 0.663 | -1.49 % | 0.641 | 0.66 | -2.78 % | 0.634 | 0.658 | -3.71 % | ||
GBP/USD | 1.371 | 1.264 | 8.50 % | 1.335 | 1.26 | 5.81 % | 1.296 | 1.265 | 2.43 % | ||
USD/ILS | 3.372 | 3.759 | 10.30 % | 3.584 | 3.73 | 3.95 % | 3.599 | 3.696 | 2.63 % | ||
USD L 3M | 4.30 % | 5.32 % | -19.33 % | 4.30 % | 5.33 % | -19.37 % | 4.30 % | 5.32 % | -19.25 % | ||
Q2 Average | H1 Average | ||||||||||
2025 | 2024 | Change | 2025 | 2024 | Change | 2025 | 2024 | Change | |||
USD/RMB | 7.159 | 7.127 | 0.45 % | 7.191 | 7.108 | 1.18 % | 7.840 | 7.105 | 10.34 % | ||
EUR/RMB | 8.397 | 7.622 | 10.16 % | 8.158 | 7.650 | 6.65 % | 7.840 | 7.681 | 2.07 % | ||
RMB/BRL | 0.762 | 0.780 | 2.27 % | 0.788 | 0.762 | -3.36 % | 0.801 | 0.716 | -11.95 % | ||
RMB/PLN | 0.505 | 0.568 | 11.11 % | 0.522 | 0.596 | 12.37 % | 0.540 | 0.619 | 12.77 % | ||
RMB/ZAR | 0.402 | 0.386 | -4.14 % | 0.393 | 0.383 | -2.79 % | 0.391 | 0.381 | -2.63 % | ||
AUD/RMB | 4.677 | 4.727 | -1.05 % | 4.607 | 4.683 | -1.63 % | 4.554 | 4.678 | -2.64 % | ||
GBP/RMB | 9.816 | 9.007 | 8.98 % | 9.602 | 8.969 | 7.06 % | 9.309 | 8.989 | 3.56 % | ||
RMB/ILS | 0.471 | 0.527 | 10.69 % | 0.498 | 0.525 | 5.07 % | 0.501 | 0.520 | 3.70 % | ||
RMB L 3M | 1.630 % | 1.92 % | -14.97 % | 1.700 % | 1.991 % | -14.63 % | 1.754 % | 2.135 % | -17.83 % | ||
Forward looking statement:
This press release published by ADAMA Ltd. or ADAMA Agricultural Solutions Ltd. (together the "Company") is for marketing and information purposes only, and contains forward-looking statements which are based on Company's management's beliefs and assumptions and on information currently available to the Company's management. By this press release, the Company does not intend to give, and the press release does not constitute, professional or business advice or an offer or recommendation to perform any transaction in the Company's securities. The accuracy, completeness and/or adequacy of the content of this press release, as well as any estimation and/or assessment included in this press release, if at all, is not warranted or guaranteed and the Company disclaims any intention and/or obligation to comply with such content. The Company shall not be liable for any loss, claim, liability or damage of any kind resulting from your reliance on, or reference to, any detail, fact or opinion presented herein. The Company's assessments are based on the information available to the Company as of the date hereof, and may not be realized or be realized in a different manner than the Company estimates, inter alia, due to factors out of the Company's control, including the risk factors listed in the Company's annual reports and changes in the industry or potential operations of the Company's competitors. Any content contained herein shall not constitute or be construed as any regulatory, valuation, legal, tax, accounting and investment advice or any advice of any kind or any part of it, nor shall they constitute or be construed as any recommendation, solicitation, offer or commitment (or any part of it) to buy, sell, subscribe for or underwrite any securities, provide any credit or insurance or engage in any transactions. Before entering into any transactions, you shall ensure that you fully understand the potential risks and returns of such transactions. Before making such decisions, you shall consult the advisors you think necessary, including your accountant, investment advisor and legal and tax specialists. The Company and its affiliates, controlling persons, directors, officials, partners, employees, agents, representatives or their advisors shall not assume any responsibilities of any kind (including negligence or others) for the use of and reliance on such information by you or any person to whom such information are provided.
[1]. Sources: AgbioInvestor Quarterly report (
[2]. For an analysis of the differences between the adjusted income statement items and the income statement items as reported in the financial statements, see below "Analysis of Gaps between Adjusted Income Statement and Income Statement in Financial Statements".
[3]. The number of shares used to calculate both basic and diluted earnings per share in both Q2 2025 and 2024 is 2,329.8 million shares.
[4]. For an analysis of the differences between the adjusted income statement items and the income statement items as reported in the financial statements, see below "Analysis of Gaps between Adjusted Income Statement and Income Statement in Financial Statements".
[5]. The number of shares used to calculate both basic and diluted earnings per share in both H1 2025 and 2024 is 2,329.8 million shares.
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Contact
Joshua Phillipson | |
Global Investor Relations | China Investor Relations |
Email: [email protected] | Email: [email protected] |
View original content:https://www.prnewswire.com/news-releases/adama-reports-second-quarter-and-first-half-year-2025-results-302538961.html
SOURCE ADAMA Ltd.
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