ADAMA (000553) Q1 2025 earnings summary

Executive summary

• Global crop protection market remained weak, with major agricultural commodity prices continuing their downward trend, pressuring farmer incomes despite lower input costs.

• Company launched the “Endeavor” transformation plan in early 2024, targeting profit improvement and cash flow enhancement over three years through financial optimization, operational restructuring, and focus on value innovation.

• No material impact from geopolitical tensions in Israel on supply or consolidated financial results.

Financial highlights

• Q1 2025 revenue was RMB 7.17 billion, down 4.48% year-over-year; net profit attributable to shareholders was RMB 151 million, a turnaround from a RMB 228 million loss last year.

• EBITDA increased 20.45% year-over-year to RMB 1.03 billion.

• Basic EPS was RMB 0.065, up from a loss per share of RMB 0.098 in Q1 2024.

• Operating cash flow improved to negative RMB 207 million from negative RMB 735 million year-over-year.

• Gross margin improved due to lower cost of newly sold inventory, offsetting price declines and FX headwinds.

Outlook and guidance

• The “Endeavor” plan is expected to continue driving profit and cash flow improvements through 2026, with ongoing cost control and operational efficiency measures.